What benefit do cashback reward programs provide to cardholders?

Cashback reward programs are designed to return a portion of the money spent by cardholders on purchases back to them. This creates an incentive for consumers to use their credit cards for everyday transactions, as they can earn rewards based on their spending behaviors. The cash back is typically a percentage of the total amount spent, which can accumulate over time and be redeemed in various forms, such as statement credits, direct deposits, or gift cards. This feature makes credit cards with cashback programs attractive to consumers who want to maximize the value they receive from their spending.

The other options either do not directly relate to the nature of cashback reward programs or pertain to other benefits that can be offered by credit cards but are not inherently linked to cash back. For example, free credit score access can help cardholders monitor their credit health but does not provide direct financial rewards based on spending. Similarly, reduced interest rates and higher credit limits are benefits associated with creditworthiness and management rather than rewards for spending. Thus, the fundamental purpose of cashback reward programs is accurately captured by the idea of returning a percentage of spending back to cardholders.