Cashback on everything

There is a popular tendency among retailers nowadays which gives you an opportunity to return a certain percentage of money spent on various goods or services. This is what we call cashback and this is how it works in general. What the advantages of this process are and which types of cashback services you can use? Let’s try to find it out right now.

Cashback in Particular

First of all, we need to understand what cashback is in details. In fact, there are cashback credit cards and special cashback websites. They both function in generally the same way. They both get a percentage money from a merchant who led you.

So why do retailers choose this type of cooperation? When a retailer joins such an affiliate network a cashback website gets a revenue by advertising this retailer. In other words, a cashback service is paid to advertise a retailer. As soon as the transaction is confirmed an affiliate network receives a certain sum of money from a retailer.

Once you click through to a retailer a part of your money is back to you. The benefits of a retailer are numerous. These are money, advertising and the most important one is convenience. The whole process is very hands-off and retailer does not take any part in it.

How to Save Money Online

Online shopping is the most widespread method through which you can save several dollars. To get them you simply register on a certain cashback website. Once you have an account you can start clicking through a store you are interested in. That is all, now you get cashback for any services. Among them are:

• Booking hotels
• Buying groceries
• Buying tickets
• Choosing gifts
• Taking out car insurance

As you understand, you can choose almost any types of services which you want to purchase. Certain cashback websites even offer so called vouchers. Owing to them you can double your savings.

Convenience is Great!

Now that you know how methods of cashback work you can start earning so to speak. However, cashback services are really flexible and their developers understand that clients do want to use all these functions on the go. You can do it.

There are various apps which you can install on your smartphone and start saving right in your favourite supermarket. They vary depending on the type of device you use: Android or iOS. In most cases such apps work typically. You just download one of them, create an account and on you go.

Well, no matter how convenient and simple everything is, it means nothing, if you cannot actually use your money. However, in most cases it is not difficult at all. There are various pay out methods which make it possible to withdraw your money.

In most cases cashback websites make it possible to have your money paid right to your PayPal or bank account. In addition, you can pay for gift cards from such services as Amazon, for instance. Some cashback services go so generous that you can get a bonus up to 10% for using them. In some cases additional bonuses are paid for inviting a friend.

Aspects to Think About

Many people wonder whether cashback savings are taxable or not. Fortunately, the answer is no. The fact is that your earning or savings are treated as a discount from a retailer. In other words, it is not an income and you should not pay any taxes.

It is important that certain cashback websites charge an annual fee. In fact when signing up you choose a certain type of membership. Be sure to check the amount of annual fee in order not to lose more than you get.

Cashback Credit Cards

As you obviously know, cashback services do not work online only. There are a lot of types of credit cards which operate the same way as online services. However, you should use your ID and provide more of your personal information to get one.

The best idea is to obtain a cashback credit card to pay in restaurants, supermarkets and other spots. The amount of the percentage paid to you for using certain services varies.

Let’s say a certain Visa card pays you back 5 percent on restaurant and bar purchases and at the same time 4 percent on hotels and airfare, 3 percent on online purchases and 2 percent for everything else. Do not forget to check these numbers when getting a cashback credit card. Annual fees also matter. Do inquire about them in advance.

Post Purchase Cashback Services

There is another interesting feature connected with cashback cards. It is called a post purchase service. As you understand by the name of it, you get a certain sum of money back after you have made a purchase. In most cases you receipt is used for this type of a service. Many shops and online resources do look at your receipt and then return you a certain some of money.

For example, Walmart customers who use Walmart Pay app can submit their e-receipt. The application automatically compares your purchases with prices of local competitors. If they find a lower price, you can get a certain sum of money as a compensation. There are a lot of other options like this.

As you see, cashback services are a good tool to save some extra money. In fact if you do not use them, you just throw your money away. The sum may sound like not much at first but let’s do the math.

Imagine that your monthly credit card bill is $1,000. In case you pay it off in full and you get 1 percent back that is additional $10 or an extra $140 per year. For doing nothing. Isn’t it great?