Cashback
A reward that returns a small percentage of your spending as money back to you.
Cashback pays you back a fraction of what you spend, usually through a card or a specific retailer programme. It can quietly add up on regular spending you would do anyway, effectively a small discount. The catch is that chasing cashback can encourage extra spending, and credit-card rewards are worthless if you carry interest-bearing balances. Treat it as a bonus on planned purchases, not a reason to buy. Tracking it helps you see whether the rewards are real savings or just nudging you to spend more.
Example
A card offering 1% cashback returns $20 on $2,000 of monthly spending, about $240 a year, only worth it if you never pay credit interest.
Try in Assetli
Read more
Related terms
Debit vs Credit Card
A debit card spends your own money instantly; a credit card borrows the bank's money to be repaid later.
Recurring Transactions
Transactions that repeat at regular intervals — subscriptions, loan payments, salary deposits — essential for predicting future cash flow.
Savings Rate
The percentage of income saved or invested rather than spent, widely considered the most important factor in building wealth.
Explore more terms
Transaction Categorization
The process of classifying financial transactions into categories like groceries, rent, or entertainment to analyze spending patterns.
Bank Synchronization
The automated process of importing transactions from bank accounts into a financial management tool, either through API connections or file imports.
APR (Annual Percentage Rate)
The annualized cost of borrowing expressed as a percentage, including interest and mandatory fees, used to compare loan products.
Interest Rate
The percentage charged on borrowed money or earned on deposited/invested money, expressed as an annual rate.
IBAN
International Bank Account Number, a standardized format for identifying bank accounts across borders.
Overdraft
A credit facility that lets you spend more than your account balance, up to an agreed limit, for a fee or interest.