---
title: "What is Cash back? | Chargezen"
description: "A reward that returns part of what a customer spent, as money, store credit or a card statement credit."
url: "https://chargezen.com/glossary/cash-back"
lang: "en"
---

Canonical URL: https://chargezen.com/glossary/cash-back

# Cash back

Cash back rewards

Loyalty

A reward that returns part of what a customer spent, as money, store credit or a card statement credit.

## What is Cash back?

Cash back gives customers a percentage of their purchase back. It's easy to understand: "Get 5% back" needs no explanation, which is why card issuers and shopping apps use it. **Three kinds:** - **Card and app cash back,** paid by a credit card or a shopping portal. The store doesn't control it. - **Store cash back as credit,** where the brand returns a share of the order as credit that can only be spent with it. This is the kind most brands run. - **Rebates,** where the customer claims money back after buying, often by uploading a receipt. **Store credit vs points.** Points need a conversion rate ("100 points = $1"), which makes the value harder to see. Credit shows a dollar amount, so customers know exactly what they have. Points give the brand more room to change rules and run bonus events. **What to plan for:** - **Cost.** 5% back on every order is a 5% price cut for loyal customers. Make sure your margins carry it. - **Liability.** Unspent credit is money you owe, so track it and decide whether it expires. - **Timing.** Credit issued after the return window avoids paying rewards on returned orders. **For subscriptions,** cash back credit works well when it applies to the next renewal automatically, so subscribers see the reward on every order. **How Chargezen handles it:** Chargezen rewards can pay out as Shopify store credit, and subscribers see their balance where they manage their orders.

## Example

A skincare brand gives 5% back as store credit on every order. A subscriber who spends $60 a month earns $3 of credit each order, which comes off a later order.

## Why Cash back Matters

A clear, money-based reward is one of the easiest ways to give customers a reason to come back.

## Explore More Terms

Browse our complete glossary of e-commerce and subscription terms.

[View Full Glossary](https://chargezen.com/glossary)