Originally Posted by Dagless
I and bro Ramadhan go to the bookstore. We see "10% discount for every item" sign there.
I buy a $10 book, but I pay only $9 because I get 10% duscount. Bro Ramadhan buy $20 book, but he pay only $18 because he get 10% discount too.
I and bro Ramadhan have credit card from same bank that offer cash back up to 2%. This month I use my credit card and spend $1000, bro Ramadhan spend $100. I pay to the bank $1000, then bank gives me $20 in my credit card balance. So, if in next month I spend $400, I can pay only $380. Bro Ramadhan pay $100 to the bank, he doesn't get $2 in his balance. According to the rule, if the card holder spend $500 or more, he/she get 1% cash back, if the card holder spend $1000 or more, he/she get 2% cash back. And bro Ramadhan spent only $100.
These are just example, but I hope you understand what's difference between discount and cash back. Difference between unconditional and on condition.