What's the difference between rebates and cashback?

Is there a difference between the 2? sorry i'm quite confused by these 2 concepts. Why do some credit cards offer rebates instead of cashback, is it more affordable for them?

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Junus Eu

05 Dec 2019

I think it's essentially the same thing.

A 5% cashback and a 5% cash rebate basically means getting back $5 when you spend $100.

For Fave, they call it cashback. So when you spend $10 at a vendor giving 5% cashback, you will get $0.50 that will be deductible off your next purchase at the same vendor.

For shopback on the other hand, the cashback is actually accumulated in your wallet.

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Elijah Lee

05 Dec 2019

Senior Financial Services Manager at Phillip Securities (Jurong East)

A cashback would be money that's offered to you after you purchase something. For example, on Fave pay, a cashback can be used to reduce the next purchase at the same shop. It's automatic and requires no intervention on your part.

A rebate is also money that's returned to you after you purchase something, but you can choose to accumulate it until it is of a sufficient amount to cash out.

Effectively they are the same thing, but the mechanics work differently.

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