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You’ve probably heard of credit cards that offer cash back on purchases as part of a rewards program. But you may be less familiar with another easy way to earn money while shopping: cashback apps and websites. Similar to credit cards, these put a portion of the money you spend back into your pocket, allowing you to use it for a variety of purchases, such as online shopping, groceries, and gas.
As an added bonus, some of these sites and apps also offer additional savings tools, such as “price tracking, price comparisons, and the ability to quickly scan coupons across the web,” he said. bank rate. While the potential benefits seem obvious, it’s important to first understand how these platforms work and understand the possible drawbacks.
How do cashback apps work?
Cashback sites typically ask you to first download an app or extension, sign up for a free membership, then sign in to the cashback site, use the link for the store you want to shop, and start shopping. said investmentpedia. The site or app you use (there are many to choose from) “records your purchases and earns you money when the transaction is approved and completed.”
According to Bankrate, you will often receive your funds “once your cashback earnings reach a certain amount,” at which point you can either “withdraw the money to your bank account or have your payment transferred to a financial service like PayPal.” “I can do it.” Furthermore, he said Nerd wallet“Some apps offer points that can be redeemed for a discount on your next purchase.”
You typically use cashback sites and mobile apps to browse available products and deals, but if you’d like, you can install desktop apps or browser extensions that notify you of potential deals while you shop. “You can do that,” Bankrate said.
And where exactly does the money you’re getting just for shopping come from? Simply put, it’s through referrals, Bankrate said. “Retailers get paid for every purchase made using a cashback app,” which means retailers are “willing to pay cashback sites in exchange for driving shoppers to their destination.” means.
Why use cashback apps?
“Rewards apps are an easy way to make money and get cashback on everyday purchases,” he said. The Ascentespecially considering that many of the top cashback apps are free. The rewards and cashback you earn vary, but downloading cashback apps and websites is a passive way to earn some extra cash.
Even better, some cashback apps and websites can help you get the best value possible when you shop. For example, Honey, one of the popular cashback apps, “allows you to look at the top coupons to determine the best deal,” he said. CNBC Select. Additionally, “When you shop on a retailer’s website on the app, you’ll see a toolbar at the bottom displaying available promo codes.” Depending on the app, may you be able to buy it at a lower price elsewhere? It may also let you know if something is wrong.
Are there any risks or disadvantages to cashback apps?
If you’re looking for quick cash, cashback apps may not be your best bet. One drawback is that these apps and websites don’t always issue cashback in a timely manner, Investopedia said. Additionally, “there may be a cap on the amount of cash you get back.”
Getting the most out of cashback apps may require some strategy. “Some cashback sites are better suited for certain purchases than others,” says Bankrate. Therefore, you should do some research to find out which site best suits your shopping habits.
Additionally, cashback apps are generally “free to download” and have no “monthly subscriptions or one-time fees,” but “some apps may charge inactivity fees, so make sure you’re using the right app.” “Be sure to read the fine print before choosing yours,” Ascent said.
