Cashback rewards are a type of incentive offered by credit cards or loyalty programs, where a percentage of the money spent on purchases is returned to the consumer. For example, if a card offers 1% cashback and you spend $100, you would receive $1 back. This can be accumulated over time and redeemed as a statement credit, check, or gift card. These rewards encourage consumers to use specific cards or shop at certain retailers. Many programs offer higher cashback rates for particular categories, such as groceries, gas, or online shopping. This makes it beneficial for consumers to choose their spending wisely to maximize their rewards.