What is cashback?

Cashback is a rewards program where customers can earn back a percentage of the money they spend while shopping. Originally a credit card feature, some debit card accounts now offer cashback rewards too, as well as stores, online retailers, and more.

Business cashback.
A Guide to Contactless Payments.

Cashback reward programs

Want to earn money while you shop? Then signing up for a cashback reward program might be the right choice for you. There are a variety of different programs you can choose from—credit cards, debit cards, websites, and more. The types of rewards offered will differ greatly depending on which program(s) you sign up for. Read on for more information!

How do cashback reward programs work?

The way cashback rewards work depends on the type of program you’re enrolled in. Here are some examples:

Credit card cashback offers benefits to customers thanks to deals made between credit card companies and the retailers they work with. For every purchase a customer makes with their card, the retailer has to pay a certain percentage back to the card company. The credit card company then passes some of this payment back to the customer in the form of cashback.

Debit card cashback is generally cashback paid directly from the bank to the customer.

Website cashback. Websites like Ebates or Rakuten work much like credit cards in that they are able to make deals with certain retailers to secure cashback rewards for their own customers. Many sites now offer a cashback app to help make your reward-tracking even easier. However, if you live in the European Economic Area, GDPR regulations make it nearly impossible to create accounts with these most of these sites.

How much cashback can I receive?

The amount of cashback you can receive depends on two things:

  1. the rewards program you sign up for, and
  2. how much you actually spend. Remember—the only way to earn rewards is to spend money in the first place.

When selecting a program, determine whether you’ll be able to earn benefits without changing your normal spending habits. If this is the case, you’ll most likely get money back without going over budget. If not, find a program that’s a better fit for your lifestyle.

Cashback pros and cons


  • Get reimbursed for a portion of the money that you spend


  • Some cashback programs have hidden fees
  • Sometimes rewards might only be available on items that you don’t normally purchase—meaning you’ll have to spend more than usual to get the cashback

With N26 Business accounts, there are no hidden fees, so you can enjoy worry-free cashback on all your business expenses.

N26 Business cashback

Running your own small business can be hard—banking doesn’t have to be. N26 Business accounts are specifically designed to help freelancers get the extra support they need. Enjoy 0.1% cashback on all card payments, or 0.5% cashback for Business Metal customers. Sign up in minutes, and start earning cashback right away.

How to earn cashback with N26 Business accounts

Once you’ve opened your N26 Business account, earning cashback is as simple as using your debit Mastercard. Standard, Smart, and You customers earn 0.1% on all card payments, while Metal holders will earn 0.5%. Your cashback will be automatically added up and credited to your account every single month. That’s all there is to it.

Open online bank account
Business virtual card.

N26 Insights and Rules for business expenses

With N26 Insights, you’ll receive a monthly breakdown of all outgoing and incoming payments, great for tracking business expenses or checking your cashback rewards. Categorize your spending by adding tags to catalogue each transaction—such as #invoice #expense #cashback #interest.

N26 Rules allows you to set up automatic transfers to your N26 Spaces sub-accounts, so you know your monthly expenses are always covered and can continue spending with confidence.

N26 Perks—benefits with you in mind

N26 Business accounts offer more than just cashback. Every N26 account comes with access to exciting perks, giving you discounts on the brands you love. N26 Business Perks are tailored freelancers and small business owners—so you can be sure you’re getting benefits you’ll actually use.

N26 Premium Partners.

Which cards offer cashback?

There are many different types of cards that offer cashback. Traditionally a credit card benefit, some debit cards now offer cashback as well. The types of cards available to you are dependent on certain criteria like where you live, what kind of income you earn, and so on. With N26, cashback is available on all card payments made from N26 Business accounts.

Does N26 offer cashback?

Yes, N26 offers 0.1% cashback for Business Standard, Smart, and You accounts. Business Metal accounts receive 0.5% cashback. Plus, all N26 premium account holders get special discounts with partners thanks to N26 Perks.

How does a cashback credit card work?

A cashback credit card pays you back a small percentage of the money you spend in certain situations. For the most part, the money for this comes from the revenue that credit card companies earn from retailers. Just like consumers have to pay interest and other fees on a credit card, retailers also have to pay fees known as interchange fees. The credit card company then shares a percentage of the revenue from these fees with the consumer as an incentive for having their accounts there. This percentage is generally collected automatically, and can then be redeemed on future purchases.

What does cashback on a credit card mean?

Cashback on a credit card means that you’ll receive a certain percentage of money back when you spend money with your card. The percentage might vary depending on your card company, but it is usually in the range of 0.5% to 3%.

What is cashback on a debit card?

Cashback on a debit card is the same concept as cashback on a credit card—you’ll receive a percentage of what you spend as cashback or rewards points every month. The only difference is, instead of making your purchases on credit, you’re spending directly from your bank account.

Can you do cashback with Apple Pay?

Yes, you can earn cashback with Apple Pay, as long as the card attached to your Apple Pay offers cashback in the first place. Your normal cashback policy will still apply when you pay using Apple Pay rather than your physical card.

Can you get cashback with Google Pay?

Like Apple Pay, making purchases with Google Pay will still allow you to collect cashback, provided the card attached to your Google Pay account offers cashback already. It makes no difference whether you complete your transactions with Google Pay or your physical card—you’ll still get all the rewards.

Is cashback free money?

Yes and no. When you’re making purchases you would normally have made anyway, cashback might feel like free money. However, you only receive cashback in exchange for purchasing something in the first place—so there is a cost associated with it. Most rewards cards also charge you monthly or yearly fees, which is another cost of cashback. Think carefully about the costs associated with any cashback programs you’re considering. Estimate how much cashback you’re likely to earn—without going over your normal budget!—and then determine if the cost of the program is worth it for you.

What is cashback bonus?

Cashback bonus is another name for any cashback incentive program, whether it comes in the form of points collected on a credit card or cashback paid straight into your bank account.

How can I activate cashback?

In order to activate cashback, you first have to make sure your credit or debit card offers cashback. If it doesn’t, you’ll have to find one that does and open a new account. In most cases, the cashback feature will be activated automatically when you open this kind of account.

How does cashback work?

For the consumer, the cashback process is very simple. Sign up for a credit card or bank account that offers cashback bonuses. Then, when you make payments or purchases, your cashback rewards should be collected automatically. Check the terms and conditions of your specific program to learn more.

Who pays the cashback?

This depends on what type of program you choose. In a credit card cashback program, the cashback generally comes from the fees that retailers pay to the credit card company. The credit card company then shares a portion of this revenue with the customer. With a debit card, the bank pays the cashback to the customer directly. However, the specifics may vary from bank to bank.

How does in-store cashback work?

In-store cashback is very different from credit or debit card cashback programs. It refers to literal cash that you request when you’re checking out at the supermarket with your credit or debit card. You can request €20 as cash, and the cashier will add it to your total, handing you the €20 note with your receipt. It helps the grocery store from having to deal with too much cash on site, and saves you a trip to the ATM.