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How Does Cashback Work?

How does cashback work and how to get started

In this post we’ll be exploring the world of cashback. How does cashback work? We’ll explain how it works and how anybody can utilize it to make money back on purchases. Additionally we will look at some of the best cashback shopping sites and top cashback cards. Including a simple method you can use to boost your earnings even more. So if you’re wondering, how does cashback work, read on.

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What Is Cashback And How Does Cashback Work?

Cashback is money that is earned back on a purchase. It can include both online and offline purchasing.

Retailers are increasingly competing for your custom. One way to do this is by offering customers cashback for shopping with them. Although the customer still pays the full price upfront – they are then paid a percentage of this back later. This effectively gives the customer a discount on their purchase.

There are different ways to earn cashback. Some retailers may offer their own cashback promotions directly. But most commonly used are cashback websites.

How does cashback work
How does cashback work

There are lots of specific cashback websites and apps available that combine offers from lots of retailers into one easy to use central location. These sites are free to use (although some offer extra paid premium options).

If you are wondering how they can be free to use, this is because they receive commission payments from retailers for referring customers to them.

In addition to cashback sites there are also some credit and debit cards that offer cashback incentives when making purchases. These are usually referred to as reward cards. We will look at some of the top cashback cards further below.


So now we’ve answered the question of how does cashback work? We’ll look next at some of the best cashback shopping sites to use.

What Are The Best Websites?

There are lots of cashback websites and apps available that are free to use. But some are better than others. Whether that be for ease of use, the amount of retailers available or the cashback rates on offer.


TopCashback is one of the most popular cashback sites with offers from thousands of the top brands, including offering Amazon rebates. One major benefit to this site is that there is no minimum payout threshold and generous cashback rates available. Payout options are plentiful and include bank deposit, PayPal or gift cards.

It is easy to use via the website or the dedicated app. It is free to use but a premium version is also available allowing you to earn increased cashback rates and exclusive perks.

Join TopCashback here

More Cashback And Discounts Sites

There are many other sites and apps offering cashback, discounts, loyalty points and coupons. Find them on our site in this list of the top personal finance apps and services.

What Is The Best Cashback Card?

A cashback card is a form of reward card and can include both credit cards and debit cards. They are usually even more convenient than cashback sites as cashback is automatically applied when you use the card to make a purchase. No need to keep signing into accounts beforehand, it is done instantly whenever you use it.

How To Boost Your Cashback Earnings

When using a cashback product most people will tend to use either; a top cashback card or cashback websites. But why not combine the two of them and earn even greater cashback?

For example you make a purchase using a cashback card offering 10% cashback at a particular retailer. You could also make this same purchase through a cashback website also offering 10% cashback.

But if you use both the cashback site and card to purchase the item you will be earning double the cashback. 10% from the card and 10% from the site = 20% total cashback. And it doesn’t take any extra effort.

To show the example let’s assume the product costs $100. You visit the cashback site and click through the 10% offer to earn $10. That’s $100 x 10% = $10.

When you get to the checkout you use a cashback card to make payment that also offers 10% at the same retailer. This means you earn another $10 cashback from the card. Again that’s $100 x 10% = $10.

So that’s $10 from the website/app and another $10 from the card. Giving a total of $20 which is 20% of the $100 item price. You’ve now made back double what you would have if you’d just used one cashback option. A lot more cash for no extra effort!

How does cashback work to make you money back on your purchasing
How does cashback work to make you money back on your purchasing

Cashback Signup Bonuses

Simply sign up to one provider and meet the bonus conditions. Then move onto another provider for your next purchase to make use of their bonus offerings. You can often make even more through referrals.

How Does Cashback Work? Conclusion

Hopefully we’ve clearly answered the question of how does cashback work?

It can be a great way to earn money back and score big discounts on anything you purchase. You can receive cashback through cashback sites and apps or through rewards cards.

By using both a cashback site and paying with a cashback card you can increase your earnings and discounts even more. Plus you can use free sign up bonuses from different providers to make more money back.

View more ways to save and make money on our blog including learning how to save money at home.

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