Receiving cash back is when a debit card holder adds an extra amount to his purchase to receive actual cash back or when a credit card holder is offered a percentage of cash back or points on specific purchases, such as gas and groceries. Cash back isn't available with every credit card.
Debit card cash back is a convenient way for a cardholder to not have to make an extra trip to the ATM to receive cash. An example of debit card cash back is buying $40 worth of groceries and requesting $40 cash back, which makes the grand total deducted from the checking account $80.
Credit card cash back is a type of reward program. If the cardholder would rather not take the cash back offered on the purchase, he may have the option of receiving points instead. These points can be used for travel, gift cards or other purchases. To take full advantage of credit card cash back, the credit cardholder often has to reach a specific level of points.
Credit card cash back is used to entice new customers and keep current customers. The offer is often more beneficial to cardholders who are able to take care of their balances in full by the end of each month in order to avoid interest and fees that might make cash back seem less of an incentive.