Cashback
Also known as: cash-back, reward cash
A reward where a portion of money spent on a purchase is returned to the buyer — usually as a credit to the card, wallet, or bank account.
Cashback is a reward mechanism where a percentage of the amount you spend is returned to you, typically credited back to the card or wallet used for the purchase. Credit card cashback is the most common form — a card might return 1-2% on all purchases, 4-5% on a chosen category (groceries, dining, travel), or a flat amount on a sign-up bonus after meeting a spend threshold.
Cashback differs from reward points in one important way: it is denominated in actual currency, not in a points system the issuer controls. ₹500 cashback is ₹500. 500 points might be worth ₹50, ₹500, or ₹5,000 depending on the redemption catalog at the moment you redeem.
The math that matters: cashback only saves you money if you would have made the purchase anyway. Buying things you do not need to earn cashback always costs more than it returns. The genuine value of cashback comes from rotating cards across categories and paying off the full balance every month so the cashback is not eroded by interest on a revolving balance.