06 Feb

What is a Cashback reward program and why should you use one?

What is a cashback reward program and why should you use one?

Cashback reward program, the idea of getting some money back when you buy something is very appealing, and for a very good reason.

Companies create a cashback reward program with the idea of making you come back often, and even if they lose some money, the fact that you get to come back all the time makes it well worth it.

With that in mind, it’s very important to understand what is a cashback reward program and how it works!

What is a cashback reward program?

The cashback reward program is designed to help generate return clients for a business.

The main reason why you would offer some of the cashback is to show clients your appreciation while also making sure they will get back and buy more products.

Businesses see this as a trade-off, they are offering a benefit to return clients, and obviously, those clients are inclined to come back more and more since they receive some benefits. It’s the best of both worlds, and one of the reasons why customers get back in the first place.

How does a cashback reward program work?

The entire cashback reward process is actually very simple. You create an account and the seller will automatically give you back the specific cashback reward whenever you initiate a purchase.

The amount will differ, depending on the seller. For example, if the cashback reward is 10%, then if you spend $100 you will receive $10 as a cashback reward. 

In many cases, these rewards add up and you can easily avoid spending a lot of money, which is always a major plus. Credit card companies offer this type of benefit very often.

And we also have online sellers that encourage people to come back because they provide such discounts all the time. It really is a great idea, and something you will appreciate more than expected. 

Top 10 cashback reward programs

Capital One Shopping

This cashback reward program comes in the form of a browser extension. What they do is they help you find deals on sites and then you will be able to earn credits for every purchase.

The cool thing is that as you earn credits, you can eventually redeem them for various gift cards. It helps you save time and it will also make it easier to find discounts too.

Top Cashback

Unlike other cashback reward programs, this one actually gives you the full commission and they don’t make money from taking some of your commission. It’s possible to get 30% cashback from most websites, which is a major plus. They also have very fast customer service and a referral program if you want to invite friends.

Rakuten cashback reward program

Rakuten is an older cashback reward program, but it continues to provide a variety of benefits. You will have great cashback on purchases, and it has partnerships with companies like Sephora, Walmart, and many others. There is a signup bonus, you get access to seasonal promotions, promo codes, and other great stuff. You can’t scan receipts, but the percentage earnings are very impressive.

Honey

Honey is also a browser extension, that they do is they help you find coupon codes for thousands of websites. You accumulate credits as you buy stuff online, and then you can redeem the credits for a variety of different gift cards. It helps you save money automatically too. With that in mind, there are limited offers.

BeFrugal

As the name suggests, this is a great tool for people that are frugal, since it can give up to 40% cashback. It’s an easy-to-use cashback reward program since you just have to shop via their portal. If you do that, the stuff you buy will bring in a cashback reward and that’s automatically saved to your account.

You can redeem direct deposits, gift cards, checks, and so on. The cashback rates are actually quite impressive, but the cashback system is only for online purchases, so keep that in mind. Still, if you want a cashback program that’s efficient and reliable, this one is definitely right up your alley.

Drop

Like other cashback reward programs, this one requires you to shop from their app. You load the credit card details, choose the top vendors and then you will be able to make purchases. The great thing is that you have consistent point values, so these don’t change all the time.

You also have rewards for stores that don’t really offer discounts in general, which is a major plus. Maybe the downside here is that they encourage overspending, but if you pay attention and don’t just spend money randomly you can still get a pretty good cashback experience. 

Fetch Rewards cashback reward program

What we like about Fetch Rewards is the fact that they deliver an impressive grocery shopping experience. You can use this any type you buy all kinds of groceries. You can scan receipts, but it can also help you claim points at some online stores too. With that being said, the points are always redeemed in the form of a gift card.

We find this system to be very useful and it does work quite well too. With that in mind, you can also refer other people to the system, which will net you some extra credits. 

Upromise

Upromise has an interesting premise since it will help you save money for specific life goals. It’s widely used by college students to help save money and cover their college costs. With that in mind, it works like any other cashback reward program. You buy stuff via their website, you receive a cashback reward and then the reward is added to your account They do encourage you to withdraw your earnings later on, hence the savings-focused part of the app. It’s great and certainly a cashback reward program that you need to keep in mind.

Ibotta

Ibotta is an interesting option because it helps you earn via the app. You load the app, and then you get rewards from within the app without a problem. They have over 300 retailers supported, and you can withdraw your earnings in a multitude of ways. You can even enter the store and then choose the stuff that will give you cashback, which we found to be a very nice touch.

Mr. Rebates cashback reward program

This cashback reward program covers over 3000 websites and they do give you money via check or gift cards. Their website always adds new rewards, which is great. When it comes to the amount you can save, that varies but it can be quite a bit depending on the situation. It’s one of the older programs in the cashback world, and it works extremely well.

Conclusion

Finding the best cashback reward program is not going to be that hard, since there are so many great options. We recommend the ones listed above because they are very professional and also have a really good track record.

It’s a very good idea to start earning some money from your own purchases, so we highly recommend using the cashback programs right away. Thankfully, setting up the cashback reward programs is not that hard, and it will help you save a significant amount of money!