What is Cash Back?

Cash back is a reward you earn for spending money on a card.

Instead of just paying and getting nothing in return, you get a small percentage of each purchase back—usually as money you can use again, a statement credit, or rewards balance.

Example:
If your card offers 1% cash back and you spend $500, you earn $5 back.

Higher reward categories (like groceries or transit) might earn more than your base rate.

How Cash Back Works

Most cash back programs follow a simple pattern:

1. You spend with your card (in-store, online, or in-app).

2. The card tracks your purchases and calculates rewards based on the rate (e.g., 2% on groceries).

3. Your cash back accumulates and is either:

   • Applied as a statement credit,

   • Added to your account balance, or

   • Redeemed through your app/online banking.

The key is that cash back is a percentage of what you already spend—not free money. If you’re paying a lot of interest or fees, those can quickly wipe out the benefit.

Cash Back With KOHO Everything

If you like cash back but don’t want to juggle traditional credit card debt, KOHO Everything lets you earn cash back:

• Grow your savings with 3.5% interest, one of the highest rates in Canada

• Earn a 2% cash back rate on groceries, eating, drinking, and transportation and 0.5% cash back on everything else

• There are no foreign exchange fees, so you save on international purchases and travel

• Unlimited transactions and free e-transfers

• No minimum balance required, ever

Why Cash Back Matters

Used well, cash back can help you:

• Offset everyday costs like groceries, transit, and dining

• Earn a small “rebate” on things you’d buy anyway

• Boost savings if you treat cash back as extra money you stash away, not extra money you spend

The real win is when your cash back + interest works for you, and you’re not losing it all to high-interest debt.