cashback

KÆSH-bæk /ˈkæʃ.bæk/
nounadjectiveB1TOEFLIELTS
businessgeneral

A form of incentive in which a percentage of the amount spent on a purchase is returned to the buyer.

Implies a direct, liquid financial reward rather than points or physical gifts.

The story behind the word. A relatively modern, pragmatic compound born in the late 20th century alongside the rise of credit cards and electronic banking. It combines the tangible security of 'cash' with the satisfying direction of 'back.' It represents one of the most direct, psychological rewards in retail: returning a portion of the customer's own money to them.

Word relationships

  • rebate: A rebate is often a delayed refund that requires submitting a form after purchase, whereas cashback is typically automatic and managed through a card or app.
  • refund: A refund is the return of money because a product was returned or a service was cancelled, while cashback is a reward for making a purchase.

Commonly confused with

  • discount: A discount reduces the price before you pay, whereas cashback returns a portion of the money after you have paid.

Collocations

  • earn cashback
  • cashback credit card
  • cashback reward
  • instant cashback

Example sentences

  • "Our new credit card offers three percent cashback on all grocery purchases and dining." Credit card advertisement
  • "The store is running a holiday promotion where shoppers get ten dollars cashback for every hundred spent." Retail promotion

Memory hook

It is exactly what it says: you spend cash, and some of that cash comes right 'back' to you. Cashback: Money returning to your pocket.

When not to use

Do not use when referring to a simple discount applied before the purchase is completed.

Fun facts

  • The Discover card, launched in 1986, was one of the first major credit cards to offer a cashback bonus as a standard feature, revolutionizing the industry.

Related words

redeem, accrue

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