cashback: meaning, definition, pronunciation and examples
C1Informal, Commercial
Quick answer
What does “cashback” mean?
A refund or reward of a small percentage of the money spent on a purchase, given to the customer after the transaction.
Audio
Pronunciation
Definition
Meaning and Definition
A refund or reward of a small percentage of the money spent on a purchase, given to the customer after the transaction.
1. A service offered by some retailers where customers can withdraw cash when paying for goods with a debit card, often without a fee. 2. Any promotional scheme where part of the price paid is returned to the buyer.
Dialectal Variation
British vs American Usage
Differences
In the UK, 'cashback' strongly refers to the retail service of withdrawing cash when paying with a debit card. In the US, 'cash back' (two words) primarily refers to credit card reward programs or store rebates. The one-word spelling 'cashback' is less common in the US.
Connotations
UK: Convenience, an everyday banking service. US: A financial perk or incentive linked to spending.
Frequency
High frequency in both varieties, but in different primary contexts (UK retail, US credit cards).
Grammar
How to Use “cashback” in a Sentence
[Subject] offers [Recipient] [Amount] cashback on [Purchase].[Recipient] gets [Amount] cashback from [Provider].Vocabulary
Collocations
Examples
Examples of “cashback” in a Sentence
verb
British English
- Can I cashback £50 with this purchase?
- The supermarket no longer cashbacks on Sundays.
American English
- My credit card cashbacks 2% on groceries. (less common as verb, more noun adjunct 'cash-back')
adverb
British English
- N/A
American English
- N/A
adjective
British English
- I use a cashback credit card for all my fuel.
- Check the cashback rates before you buy.
American English
- Look for a good cash-back rewards program.
- It was a cash-back offer from the car dealer.
Usage
Meaning in Context
Business
A key marketing tool for customer loyalty programs and co-branded credit cards.
Academic
Rare, might appear in consumer behaviour or marketing studies.
Everyday
Common when discussing shopping, credit cards, or getting money from a till.
Technical
Used in fintech, retail POS (Point of Sale) systems, and affiliate marketing.
Watch out
Common Mistakes When Using “cashback”
- Using 'cashback' as a countable noun (e.g., 'I got three cashbacks' – incorrect). It's usually uncountable (e.g., 'I got £20 cashback').
- Confusing 'cashback' with a simple 'discount' (a discount is taken off at point of sale; cashback is given after).
FAQ
Frequently Asked Questions
Both forms are used. 'Cashback' is common as a fixed term for the reward scheme, especially in UK English. 'Cash back' (two words) is also widely used, particularly in American English and for the physical act of receiving cash.
A discount reduces the price you pay at the time of purchase. Cashback is money returned to you after you have paid the full price. It's a post-purchase rebate.
For the service of withdrawing cash, you typically need a debit card (and sufficient funds in your account). For reward schemes, you usually need a specific credit card or loyalty card that offers cashback.
Generally, small consumer cashback rewards are not considered taxable income, as they are viewed as a reduction in purchase price. However, significant or business-related cashback may have different tax implications depending on jurisdiction. Always consult a tax professional.
A refund or reward of a small percentage of the money spent on a purchase, given to the customer after the transaction.
Cashback is usually informal, commercial in register.
Cashback: in British English it is pronounced /ˈkæʃbæk/, and in American English it is pronounced /ˈkæʃˌbæk/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “It's like getting cashback on life (informal metaphor for an unexpected benefit).”
Learning
Memory Aids
Mnemonic
Think: You get some CASH BACK in your pocket after you spend.
Conceptual Metaphor
SPENDING IS EARNING (a reverse flow of money).
Practice
Quiz
In British English, what is the most common immediate meaning of 'cashback' in a supermarket?