Why Don't Credit Card Cashback Rates Stay High?

[Pilgrim]

The whole system is designed to encourage spending anyway
Cashback isn't free money, it's part of a broader strategy to increase card usage

That's why it fluctuates depending on business goals

[MondayMoan67]

I've noticed that the best cashback deals usually come with stricter categories or caps
Like higher rates on groceries but lower everywhere else

They fine tune it so they don't lose too much per transaction