Finance glossary
Cashback
In simple terms
Cashback has two meanings: getting cash at a shop till when you pay by card, and a reward that pays you back a small percentage of what you spend.
On this page
What does cashback mean?
Cashback can mean two things. At a shop, it is withdrawing cash from the till when you pay for goods by debit card. On a credit card or through a website, it is a reward that returns a small percentage of your spending to you.
The two uses are unrelated beyond the name.
How cashback works
Till cashback simply adds a cash amount to your card payment, which the shop hands you. Reward cashback credits a percentage of qualifying spend back to your account or via a cashback site — sometimes only after a delay and subject to conditions.
Cashback credit cards may charge a fee or a higher interest rate, which can outweigh the reward if you carry a balance.
How could this affect me?
Reward cashback is only truly worthwhile if you repay a card in full each month; otherwise interest usually wipes out the benefit. Till cashback is a handy way to get cash without an ATM.
Read the conditions on cashback offers — caps, minimum spends and excluded categories are common.
Things to watch out for
- Reward cashback rarely beats interest if you carry a credit-card balance.
- Cashback offers often have caps, minimum spends and exclusions.
- Website cashback can be delayed or declined if conditions are not met.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- MoneyHelper, How to choose a credit card (opens in a new tab). Accessed 22 Aug 2026.