How Does Cash Back Work?

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By Daniel Phillips August 11th, 2017
How does cash back work

If you’ve ever earned money using a cashback website, you’ve probably wondered – how does cash back work? How is it possible to actually earn money by shopping? It may seem too good to be true, or you may worry that stores increase their prices to make giving away free money worth their while. But fortunately for you, that’s not the case. Earning cash back online is a real money-saver for consumers, while also being helpful for businesses.

Essentially, earning cash back is a three-step process where you (the shopper) and the cashback website are both being rewarded by a company for shopping at that brand’s online store. Some websites and some stores’ processes may vary a little, but here’s how it usually works:

  1. The cashback website, like FlipGive, makes an agreement with various stores, like Payless ShoeSource, FitBit, or Kay Jewelers so that if they send people to the store’s website to buy things, they will receive a percentage kickback of the purchase.

  2. Shoppers click through to the online store via the cashback site’s online portal, and do their regular shopping with a little extra excitement.

  3. The online store sends a percentage of the shopper’s purchase back to the cashback site, which they, in turn, share with the shopper.

Because everyone benefits from cash back shopping – the store, the cashback site, and the customer – it’s a win-win relationship that will likely continue to grow in popularity. The vendor gains online traffic and can potentially attract new customers. Websites like FlipGive also gain online users and usually take a small percentage of the kickback. The shopper, of course, gets money back from his or her purchases to use on future purchases, to donate to a good cause, or just to tuck away and save.

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