How Cash Back Shopping Works

how does cash back shopping work?

By now, over 80% of American’s are shopping online in some fashion.  It seems like yesterday that typing in your credit card details online seemed “risky”, but now most credit card breaches are happening in brick-and-mortar stores!

how cash back rewards work

Cash back shopping is still relatively under-utilized by the majority of online shoppers- meaning that most people are OVER PAYING for all of their purchases.

You may have googled “coupon codes for [company name]” in the past, trying for up to 15 minutes to save just a few dollars on your checkout total.  If this sounds like you, then you’re like most intelligent shoppers – you want to pay as little as possible.  But searching for a working promo code is outdated and a poor use of your time.  Activating cash back shopping services is a quick and easy way to never pay full price again.  No catch. No identity data sold.  Just more money in your pocket. Amen!

How does cash back for shopping work?

Most cash back programs, such as ebates, are just like a promoter or sales person.  They suggest a company or product, and if you happen to purchase from that company, they get a percentage of the sale.  BUT, cash back programs are much better than a sales person – because they share that percentage with you!  Ebates and others have secured thousands of partnerships with both small and large brands like Macy’s, Walmart, iTunes ,and Nike – and chances are, you’re going to be shopping at these places anyway.  Why not get a nice discount?

What’s the catch?

Many people think that there must be a catch, or some risk, involved in using these cash back shopping programs.  They think, “nobody just gives away money for free”.  And they’re right to be cautious.  But it’s important to understand that these programs are simply rewarding you for clicking their link before you shop with your favorite online retailer.  Because when you activate their cash back program before shopping, they get paid, too.  So their goal is to keep you happy, your data secure, and your wallet fat, so that you’ll remember to use them for every time you’re about to shop online.

What do the retailers get out of this?

It’s actually quite smart. Most large retailers manufacture their products for a fraction of what they sell them for.  For instance, a pair of shoes may cost $8 to manufacture, and they sell them online for $73.   If a shopping rewards program like Ebates or Swagbucks offers to bring them customers, and in exchange they must pay Ebates $5 for every pair of shoes those customers buy, the retailer is still making money!  Basically, large companies can afford to pay a middleman a small percentage, if it means that more shoppers are buying their products.

I’m a believer.  Now where do I start?

Signing up for a cash back shopping program is quick and easy. The most difficult part is remembering to bring these programs into your online shopping routines. Luckily, some programs like Ebates and ShopatHome have toolbar plugins that pop up to let you know you can save on the purchase you’re about to make.

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About CashbackJesus

Follow me, J.C., as I teach how to keep more of your hard-earned money in your pocket. The next time you take out your wallet to buy something online, just ask yourself, "what would Cash Back Jesus do?"

"Dishonest money dwindles away, but whoever gathers money little by little makes it grow." - Proverbs 13:11