In today’s digital landscape, where scams and phishing schemes run rampant, the idea of free money on a website often prompts skepticism. However, some websites particularly cash-back shopping sites are indeed legitimate.
What Are Cash-Back Sites?
Cash-back websites offer users the chance to earn back a percentage of what they spend on qualifying purchases, effectively combining spending and earning. These sites work as shopping portals, where members shop through the site and get rewarded for their purchases.
Popular cash-back sites include:
- Rakuten
- BeFrugal
- ShopAtHome
- Ibotta
For instance, Karen Lenz from Texas has been using Rakuten (formerly known as Ebates) since 2006. By clicking through the site before making online purchases, Lenz typically earns about $40 back each quarter. Similarly, Mikki Clagett from Florida has earned up to $100 per quarter through her online shopping and by referring friends, which also offers bonuses.
How Cash-Back Sites Work
Cash-back websites operate in a straightforward manner. Users sign up for a free account, and instead of going directly to a retailer’s website, they log into the cash-back site, click a link to the retailer, and then shop as usual.
Once the transaction is verified, the user earns cash back based on the dollar amount of their purchase and the offer at the time. For example, BeFrugal offers cash back at over 5,000 online retailers, with an average offer of 7%, according to its founder and CEO, Jon Lal.
Lal notes, “Consumers need to realize that this is the next evolution after coupons, the combination of cash-back sites with coupons offers double savings.”
Where the Money Comes From
The process behind cash-back earnings is simple. Cash-back sites form partnerships with retailers, who pay these sites commissions for referring customers. The cash-back sites then share a portion of that revenue with their users.
For instance, if BeFrugal offers 7% cash back at Sears, and you spend $300 on a TV, you’ll receive $21 back once the transaction is verified. Although it requires an extra step, Lenz emphasizes that the effort is worthwhile. “The money does come. You just have to be consistent and take that one extra step during your shopping process,” she says.
What to Consider
Before signing up for any cash-back site, it’s important to do some research. Check reviews, complaints, and ratings on platforms like the Better Business Bureau. Avoid sites that charge a membership fee and examine the following details:
- Payout Frequency: Some sites pay weekly, monthly, or quarterly.
- Payout Threshold: You may need to reach a certain amount before you can redeem your earnings.
- Payout Methods: Options often include gift cards, PayPal credit, or checks.
- Payout Qualifications: Offers may vary by product or retailer and may exclude certain items.
Using comparison tools like Cashback Monitor can help you find the best payout rates across different cash-back sites. However, Clagett offers a word of caution: “Be disciplined. Don’t let your cash-back membership tempt you into unnecessary shopping just for the deals.”
