Big green cashback dollars, how does cashback work
How Does Cashback Work?
Answers to commonly asked questions.

How Does Cash Back Work?

You’ve probably seen at least one cash back site out there. Some people you know might have told you they got a big cashback check. However, it might all seem a little too good to be true. After all, why would anyone give you money just to buy things you were going to buy anyway? It does sound a little fishy when you say it that way.

However, cashback programs are completely above board, and once you understand them, you’ll see why. So, if you’re wondering how does cashback work, read on. We’ve laid it all out right here.

How Do Cashback Sites Make Money?

The most common reason people ask how does cash back work is that it’s hard to figure out how these sites make money. It’s quite simple really.

Large companies that want to promote their products and services have commission or affiliate programs, which pay cashback sites a commission on every sale. Those sites split that commission with their users – so they take a portion of the commission, and they pass a portion on to you.

Which means not only do you get cash back on every purchase, but they make money off every sale. So, there’s really no mystery, and they do earn money by offering this service too. Which makes it all seem a lot easier to understand?

Why Not Do It Yourself?

The next question most people ask when they ask how do cashback sites work is why shouldn’t they just cut those sites out of the equation and earn the whole commission themselves?

The answer is that in most cases, individuals can’t become partners to those sites. The large corporations offering the commissions don’t want to deal with the administration hassles of sending out checks to individuals, so most only work with commercial websites that get a significant amount of traffic every month.

In short, there’s no way to sign up for those kinds of programs yourself. You need to work with someone who is already a partner.

How Much Can You Make with Cash Back Programs?

That really depends on the partner program. However, most of us do a big chunk of our shopping online these days. Which means that many people can make hundreds of dollars (or more) just by buying things they were going to buy anyway!

No matter what the commission percentage is, you’re still getting cash back on stuff you were going to buy anyway. Which is a better deal than you would have got shopping on those sites on your own.

The important thing to remember here is that there is NO limit on how much you can earn. So, the sky really is the limit.

What Kind of Stuff Can You Get Cashback On?

The good news is that you can get cashback on nearly anything that you can buy online these days.

There are cash back deals on travel, car rental, clothing, electronics, toys, and more. As more and more companies start to realize the benefits of marketing their products and services this way, there will undoubtedly be more added to the list too. So, if you’re planning any medium or large purchases any time soon, it’s a good idea to sign up for a cashback program first!

How to Get Cash Back on Purchases

The partner programs that cashback sites belong to are based on purchases being made through a specific link. Which means that if you want to get cash back on your purchases, you will need to make the purchase through that site. The process itself is simple and safe though. Here are the steps you will need to take:

1. Sign up on a cashback site – this is free, and you will often get a sign on bonus of a few dollars

* It’s super quick and easy to sign up, and you don’t have to enter much information to create an account

2. Before you make any purchases online, first check if there is a link from the site that you’re a member of

3. Sign in and use that link to make your purchase

4. The cash back site will automatically see your purchase, and provided there are no returns or problems with the order, your portion of the commission will be added to your account

5. When the time comes to get your cash back, they’ll send a check or deposit the cash into whatever account is stipulated in the site’s terms of service

It’s so easy to use these kinds of sites, and because you are making every purchase on the secure corporate website you would have made the purchase on anyway, it’s just as secure as buying the item directly – but with a little added bonus for patronizing the site!

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How to Make More from Cash Back Sites

Now that you know how cash back sites work, there’s another little tip that you can use to make more money. There are two ways to do this:

Refer Friends and Family

Most cash back sites have affiliate programs of their own – but you don’t have to sell anything or buy anything to earn money. All you need to do is refer people you know to the site. Many sites will pay you a small bonus for each person who signs up using your link, so you can get a little extra for doing very little – and helping your friends and family earn cash back of their own!

Get a Cashback Credit Card

Another good way to make more money from cashback sites is to get a cash back credit card. These let you earn on every purchase you make anywhere – so there’s even more opportunity to earn.

You Can’t Stack Cashback

It’s very important to mention that you usually can’t “stack” cashback. So, you can only get one cashback payment from a single site per transaction. So, make sure you choose the right site!

How Much Money Can You Make on a Cash Back Site?

That really depends on how much you shop. If you only make the occasional small purchase, your checks will reflect that. But if you spend online frequently, you could make a hundred dollars or more every quarter. So, if you need to buy clothes, electronics, sports equipment, gifts or office equipment, for home or your business, why not buy them with cash back?

We all shop online all the time. Cash back programs are just a little added bonus to make the deals that much sweeter. So, whatever you need to buy, first check if you can get it through a cash back partner and put a little extra cash back in your own pocket.

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Article last updated at: 02/08/2022