Cash-Back Sites Work to Save Money

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Whether buying gifts or everyday items, saving money is often another goal. Many people make these purchases online. It’s easy and convenient. But there is a way to save additional dollars when surfing the web.

Cash-back sites can offer you savings when shopping online. They pay you to purchase products. But beware, although most cash-back sites, like Rakuten, are legitimate, there are a few bad apples. Knowing which ones to use and how they work can give you savings.

Cash-Back Sites Pay Shopper

Rather than going direct to the online store, cash-back sites are websites you go through to shop. You are paid to shop at the online store when you go through the cashback site.

Join a cash-back site. Many of them are free, but some have a small membership fee. When you join, log in and click on the store where you want to shop.

Your visit is tracked by the cash-back site.

If you buy something, a percentage of the sale is deposited in your cash-back site account once the transaction is processed.

It can, however, take a few weeks or months to withdraw the funds from your account. Some cash-back sites have a minimum threshold that must be met before they will pay.

How Do Cash-Back Sites Work?

Cash-back sites drive traffic to online stores. The site uses affiliate links so that the retailer can track the source of the traffic.

An affiliate link is a special web link. It allows someone to earn a commission for promoting a product or service. You'll often see affiliate links in blogs or YouTube.

Ready-made links are available at “links warehouses.” Some big cash-back sites have direct relationships with companies. This allows the site to negotiate deals.

These affiliate links let the retailer know where the traffic or sales are coming from. They pay a commission to the source. Because the cash-back site is the source, they earn money through these commissions.

As a result of earning these commissions, the site passes on some of the revenue to the consumer.

Merchandise Bought Determines Payout

The amount of money the shopper makes is determined by what is purchased. Other factors to the cash-back site are how much you buy and what percentage the site is offering you.

A shopper can earn anywhere between 1–40 percent on the purchased merchandise. But the percentage offered also depends on the cash-back site.

General Rules for Using Cash-Back Sites

Until the cash is in your personal bank account, it isn’t yours. Some cash-back sites are small and may go bankrupt before you are paid. If this happens, you have little protection and will lose the money. If it’s an option, always withdraw the funds earned out of the cash-back site account quickly.

Think of cash-back sites as a bonus, not a given. Tracking problems can occur. And because the cash-back site is relying on the retailer to pay them, it’s always possible for disputes to occur. You may not always receive the money earned.

You don’t have any rights. So, think of cash-back sites as a bonus, but don’t let it drive your buying decisions.

Just because a retailer is listed on the cash-back site doesn’t mean all their products are part of the affiliate program. Some items may be exempt.

Cash back isn’t always the best deal. Sometimes a retailer not part of the cash-back site will have a better price without the cash back. Be on the lookout for these deals when shopping, and don’t always depend on cashback sites.

Rakuten Best for Shopping

You may have seen commercials for Rakuten. It’s the former eBates and has been around for 20 years. It’s the biggest and most popular cash-back site for general shopping.

Rakuten is free to use and pays well. It only requires an email address and password. There is no limit to how much cash back you can earn and no rebate forms to fill out. You are paid through PayPal or a mailed check.

They pay accruals quarterly, and you must have a minimum of $5 in your account. You'll have to wait until the next quarter if you don’t meet the minimum.

Rakuten has the option of permanently disabling your account without notice.

Use Ibotta for Groceries

Another cash-back site is Ibotta. Although it offers cash back on general retailers, it works best for groceries.

The Ibotta app is free and can be used online or in-store. Just activate the cashback offers you want to claim if you shop online or in-store.

Link your store loyalty card to the Ibotta app, and it will automatically track your purchases and apply a cash back.

You can withdraw savings when you’ve hit the $20 minimum.

One downside is you must first add offers to your saved offer list before making in-store purchases. This can take time.

You also must upload a photo of your in-store receipt. Other apps don’t require this.

Use Cash-Back Sites and Apps to Save Online

Using cash-back sites could save you money, but there are some restrictions to where and what you can shop. Some cash-back sites or apps will notify you of deals.

But do a little research. If you use a cash-back site, you want a legitimate one that will pay.

The Epoch Times copyright © 2023. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.