What is cashback ?

Cashback is a type of reward system typically offered by credit card companies and retailers. It allows customers to earn a small percentage of the purchase price back in the form of cash, discounts, or rewards points. Cashback rewards can be used to purchase items from the store or redeemed for gift cards, travel rewards, and more. Cashback rewards can be a great way to save money on everyday purchases and encourage customers to shop with a particular retailer or credit card company.

How Cash Back Works

Online cash back works by offering customers a percentage of the money spent on a purchase back in the form of cash. The percentage of cash back varies from retailer to retailer. Customers can then either use the cash back to make additional purchases or withdraw the money from their account. To use online cash back, customers typically need to sign up with a cash back website. These websites are usually free to join and offer customers the ability to earn cash back from a variety of retailers. Once customers have signed up, they can then search for retailers offering cash back and add them to their list of available retailers. When customers make a purchase from one of these retailers, they can then claim the cash back by submitting their receipts or other proof of purchase. The cash back website will then process the claim and add the cash back to the customer’s account. Customers can then use the cash back to make additional purchases or withdraw the money. Overall, online cash back is a great way for customers to save money on their purchases. It’s free to join and offers customers the ability to earn cash back from a variety of retailers. Customers should always shop around and compare cash back offers to make sure they’re getting the best deal.

Types Of Cashback

1. Credit Card Cashback: This type of cashback is offered by credit card companies and is earned when you use your credit card to make purchases. The cashback amount is typically a percentage of the purchase amount. 2. Grocery Store Cashback: This type of cashback is offered by grocery stores and is earned when you shop at their store. The cashback amount is typically a percentage of the purchase amount. 3. Online Shopping Cashback: This type of cashback is offered by online retailers and is earned when you shop at their store. The cashback amount is typically a percentage of the purchase amount. 4. Rebates: Rebates are a form of cashback that are earned when you purchase certain products or services. The cashback amount is typically a fixed amount. 5. Loyalty Programs: Loyalty programs are a type of cashback that are offered by retailers and are earned when you shop at their store regularly. The cashback amount is typically a percentage of the purchase amount.

Advantages and Disadvantages of Cash Back

Advantages:

1. Additional Savings: Cash back rewards are a great way to save additional money on your purchases. Depending on the card and retailer, you can get up to 5% cash back on your purchases. 2. Flexibility: Cash back rewards can be used in a variety of ways, including to pay off bills, purchase groceries, or to fund a vacation. 3. No Spending Limit: Unlike other rewards programs, cash back rewards do not have spending limits. So, you can use your cash back rewards as often as you’d like. 4. Easier to Track: Cash back rewards are easy to track since they are usually featured on your credit card statement or online account. This makes it easier to track your spending and rewards.

Disadvantages:

1. Limited to Certain Retailers: Cash back rewards are usually limited to certain retailers or categories, such as gas stations or grocery stores. This means you may not be able to use your cash back rewards at all retailers. 2. High Interest Rates: Cash back cards often come with high interest rates. This means if you carry a balance, the interest charges can easily outweigh the cash back rewards. 3. Low Rewards: Cash back rewards can be low compared to other rewards cards, such as travel or hotel cards. This means it can take a long time to accumulate enough cash back rewards to make a difference.

How To Redeem Cashback

• Log in to the website or app where you earned the cashback.
• Find the “Redeem Cashback” section.
• Enter the amount of cashback you want to redeem.
• Select the payment method you want to use to receive the money.
• Follow the instructions on the website or app to complete the redemption process.
• You will receive the cashback in your chosen payment method.