Credit card rewards are incentives offered by credit card companies to encourage cardholders to use their cards for purchases. These rewards can come in various forms, such as cash back, points, or travel miles. For example, a card might offer 1.5% cash back on all purchases or 2 points for every dollar spent on dining.
Cardholders can redeem their rewards for different benefits, including gift cards, travel discounts, or statement credits. It's important to understand the terms and conditions associated with each rewards program, as they can vary significantly between different credit cards and issuers, such as Visa or Mastercard.