What Are The Credit Card Cashback And The Working Concept Behind It?

by Banking Desk
Credit Card CashBack

As the name suggests, here in this article we would be getting to know about the basics of Credit Card CashBack and some of the offers that are in the trend in the market nowadays.

What are a Credit Card Cashback and the working concept behind it

Credit Card Cashback is a royalty benefit provided by the card issuing companies to encourage credit card usage among its consumers. The benefits may be in the form of:

  • Cash Rewards
  • Reduced Interest Rates
  • Offering Add-on Cards with no additional charges
  • Waiving off Annual fees provided you have an established record of a minimum eligible criteria transaction amount or spendings over a specific period.
  • More reward points per spending compared to other card owners and much more.

We would use a case study cum Credit Card Cash Offer in the market for a while now, to explain the working concept behind it:

SBI is India’s largest bank and is one of the Top 10 world banks by various factors like :

  • Number of Subscribers &
  • Annual Revenue

SBI Rewards App

Like in SBI cards, for every transaction worth 200 INR, you get 1 point and when you have collected 100 points in minimum. It is automatically converted into a 100 INR credit balance in your SBI Rewards account that could be used for making:

  • Mobile/Electricity: Bill Payments
  • DTH/Mobile: Recharges and
  • Online shopping on store that is linked to its app.

These days almost all card companies across the world have dedicated apps to serve this purpose i.e. help credit card owners keep a real-time track of their reward points and hence a make an informed decision that which card offers best cashback offers and where to spend them. So, as to get the best out of their hard earned money that they are paying for via credit card bills.

To conclude, Credit Card Cash Back is a royalty tool at the disposal of Credit Card Companies which they modify time to time globally, so as to increase their revenues by sharing their earnings with their revenue source i.e credit card owner cum user.

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