Cashback is a hidden gem of saving money, but there are still questions about it. Is Cashback Real? Is it legitimate? It doesn't cost me anything extra? How is that even possible?
Our objective with this article is to debunk the myth about cashback and try to answer some of these questions.
Is Cash back Real?
First and foremost yes cash back is real, there are big companies that make there money on cash back. And the reality is that cash back is paid through affiliate marketing, so most content sites also use the same method for generating revenue, they however don't have a loyalty component, so they don't pay cash back.
But yes it is real. There are multiple kinds of sites in the industry, most give a cash back as a percentage or fixed fee of a purchase, and the cash back is paid in dollars. There are two other classes of cash back sites:
MyPoints is one of the top cash back loyalty sites that gives cash back in the form of points. The points can be used on there site and can also be converted into cash
- 2900+ retailers
- And much, much more..
Swagbucks is similar to MyPoints, in that they give Swag Bucks instead of Dollars ($) but again these can be converted into Dollar.s
- 3000+ retailers
- And much, much more..
- the other form gives cash back in the form of dollars ($) and also has a stock component.
Is it Legitimate?
Yes it is legitimate and completely legal. Cash back is a way for retailers increase their market reach, by paying sites to find new customers for them. Most sites today take advantage of a form of this through affiliate marketing.
Does it cost anything?
Can I still get the best deals on the internet?
It does not cost you anything extra as a customer, in most cases you are able to take advantage of cash back use any coupons that you can find, and if you have one, use your cash back or points credit card to pay for the purchase.
So in general whatever you want to buy you can get cash back. There are a few exclusions that most retailers seem to follow:
- In general most retailers don't pay cash back on Gift cards, since those are in essence real money
- For most of the travel sites, they won't pay your cash back until you have taken the trip, and general it will 60-90 days after the trip completes before you see any money.
- Low margin things will either pay little or no cash back, guns and ammo comes to mind.
These are general rules, and every retailer is different, and during certain times of the year retailers will relax these rules.
How does it work?
(Or where does the money come from?)
From the retailers point of view cash back is considered part of the marketing budget, in that it is used attract and retain new customers. It is part of the user acquisition strategy, retailers will also cash back and affiliate marketing as a way to promote a specific marketing message.
If you have the patience and the desire to save money on almost everything that you buy, then cash back is a very viable option. Especially since you can apply it to coupons, and use you cash back credit cards to save even more.
The patience comes in waiting for your cash back to be deposited into your account. Most cash back sites do this on a quarterly schedule and have minimum deposit amounts, generally $5.
Also most cash back sites will pay through several methods PayPal and Check payments being the primary ones. However we are starting to see some cash back sites offering you cash back payment with gift card, which includes a nice premium, usually an extra 2-5% above what you are owed.