How Cashback Websites Work

Cashback websites operate as intermediaries between consumers and retailers, providing a way for shoppers to earn money back on their purchases. Here's a detailed explanation of how cashback websites work:

How Cashback Websites Work

  1. Partnership with Retailers:
    • Typically, cashback websites work with a wide variety of online retailers or shops. And these partnerships are as simple they might seem, retailers paying cashback websites back-end commissions when customers referred by the sites make a purchase.
  2. User Registration:
    • How it works is consumers register for a free account on the cashback website. It is required users to register and they may need to provide personal information during the registration process, such as an email address and payment info for cashback payouts.
  3. Using Cashback Website Shopping through a cashback site can helps you save more money.
    • There is a list of partnered retailers & effective cashback rates available once the user logs in to their account. There are plenty of retailers who will have a cashback percentage, or amount when you shop through the cashback website.
    • To earn cashback, users must click on the retailer's link provided on the cashback website. This ensures that the purchase is tracked back to the cashback website.
  4. Tracking and Purchase Verification:
    • When users click the retailer’s link, they are redirected to the retailer’s website with a tracking code. This code helps the cashback website track the purchase.
    • Once the purchase is completed, the retailer notifies the cashback website of the transaction. This can take a few hours to several days, depending on the retailer's processing time.

Example Workflow

  • Sign Up: Jane registers on a cashback website like Rakuten or Honey.
  • Browse Offers: Jane logs into her account and browses the list of retailers offering cashback. She sees that Macy’s offers 5% cashback on purchases.
  • Click Through: Jane clicks on the Macy’s link provided by the cashback website, which redirects her to Macy’s online store.
  • Make a Purchase: Jane buys a dress for $100 from Macy’s.
  • Cashback Tracking: Macy’s notifies the cashback website of Jane’s purchase. The website tracks the purchase and shows a pending cashback of $5 in Jane’s account.

Benefits of Using Cashback Websites

  • Savings: Users can save money on their purchases by earning cashback on transactions they would have made anyway.
  • Ease of Use: Most cashback websites are user-friendly and make it easy to find offers and track earnings.
  • Variety of Retailers: Cashback websites partner with a wide range of retailers, allowing users to earn cashback on various products and services.

Cashback websites offer a straightforward way to save money on online purchases. By leveraging partnerships with retailers, they provide users with an incentive to shop through their links and earn a percentage of their spending back. Whether you’re a frequent online shopper or just looking for occasional deals, using a cashback website can help you get more value from your purchases.