Cashback credit card is suitable for individuals who are willing to earn rewards in the form of cash benefits.
What is Cashback Credit Cards how do they work know in Hindi: Credit cards provide many types of benefits to the customers. Cashback is one of the major attractions for users in reward credit cards. Cashback refers to the percentage of money that is credited back to a customer's credit card account for purchases made by him. This percentage can be as high as 5% of the total amount spent. But keep in mind that you do not get cashback in all categories.
Cashback credit card is suitable for individuals who are willing to earn rewards in the form of cash benefits. Card issuing banks usually offer higher cashback on online shopping and select categories like movie tickets, dining, e-commerce, food delivery apps and grocery. Here are some things you should know about cashback so that you can maximize your benefits. (What is Cashback Credit Cards how do they work know in Hindi)
How does cashback work?
Cashback is one of the three major rewards earning categories in credit cards, along with free air miles and rewards points. If you are really interested in getting cashback, you can opt for a credit card that is specifically designed for this purpose.
Unlike other rewards points, you cannot use cashback to purchase any goods or services. Cashbacks are usually deposited into the cardholder's account in his or her monthly credit card statement. This can then be used to pay the month's bill. Some card issuers allow redemption of cashback against statement balance only if you make a formal request. They have also set a minimum cash point limit to be eligible for redemption for cashback. (What is Cashback Credit Cards how do they work know in Hindi)
Cashback rewards can also be in the form of actual cash that can be used to settle credit card bills or can be received as deposits in a bank. Some card issuers allow customers to use the cashback earned in the form of cash points to book flights and hotels as well as make purchases. But don't use the cashback card for travel/flight bookings or shopping as you will be using a huge amount of cash points.
Additionally, there are plenty of travel-focused and rewards-focused credit cards that serve this purpose. Therefore, use the cashback credit card only for the purpose for which you originally asked for it.
Although the cashback period does not expire, some card issuing banks have made it mandatory that the cashback received in the form of cash points should be redeemed within the stipulated time limit. (What is Cashback Credit Cards how do they work know in Hindi)
How much can a customer earn in cashback?
Card issuing banks offer different incentives for cashback. But the common thing is that cashback is usually a fixed percentage of the amount spent. For example, there are cards that offer 5% cashback on all online spends and 1% cashback on offline spends. But card issuers have a monetary limit on the cashback you can earn in a month.
Cashback cards, which are designed for specific spending categories, offer more benefits in that particular category. For example, cashback cards focused on food delivery and dining give you more benefits when you order more on these platforms.
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