What is Cashback

Many businesses, mainly in the retail and credit card sectors offer cashback as a loyalty program to get customers back for subsequent purchases. The program enables consumers to get some of their lost expenditure back in the shape of cash backs. This has turned into a massive driver for both loyalty and spend, ultimately returning the cash to customer pockets on future redemption.

How Does Cashback Work?

  1. Retail Cashback Programs:
    • The fact is that a large number of online and physical retailers partner with cashback websites or apps. This means, when you shop using such platforms a portion of all your spending returns back to you as cashback.
    • Example: if you spend $100 on a product and the cashback offers 5%, then expect to have back $5.
  2. Credit Card Cashback:
    • Some cashback cards may vary from credit card. Also, these credit cards usually have a certain percentage of cashback on all purchases and sometimes can even go up to higher percentages like 5% for the specific categories —groceries, gas stations or dining.
    • Example: A Credit Card providing 2% cashback on all spends, and a whopping 5% cash back in groceries.

Benefits of Cashback

  • Savings: Cashback immediately reduces the price you pay for your purchases, meaning that over time it adds up to some big savings.
  • Cashback incentives: If you spend cashbacks wisely, then it an extra way to save by planning purchases when the highest amount of CashBack is available.
  • Flexibility: Cashback can typically be used as a statement credit, direct deposit or to purchase gift cards so you get a bit of choice on how you want your rewards.

Tips to Maximize Cashback

  1. Shop with Cash Back Websites and Apps:
    • Use these cashback websites and apps alongside credit card cash-back by making purchases through them.
    • The idea is to scan multiple platforms and check which one gives you the most cashback when used at certain stores.
  2. Take Advantage of Promotions:
    • Look for sales events that offer special promotions or increased cashback rates.
    • Pair cashback offers with coupon codes or sales for the most savings.

Cashback is one of the more potent weapons in a discount shopper's armory, and it can lead to handsome savings on everyday spending. Find out how it works and what you can do to earn the most rewards with cashback programs so that your bank account shells don't end up empty.