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We all know people who are good with money. And one thing you may have heard them mention is cashback sites. But what exactly is a cashback site? How easy are they to use? And is it really worth the effort?
In this article we take a look at:
A cashback site enables you to get money back from many retailers when you buy goods online from them. The reason cashback sites pay money is to do with a system known as “affiliate links”.
The way this works is that retailers can track how you came to visit their site. Cashback sites put information onto your device known as cookies, which the retailer then uses to identify you. If you purchase something online from a retailer, and the cookies show that you have arrived at the retailer’s site from the cashback site, the retailer will pay the cashback site for referring you, and you will be eligible for cashback on your purchase from the cashback site.
So for example a retailer called FrillyThings will agree for a cashback site to set up an affiliate link to its website. Whenever anyone arrives at FrillyThings from that link, and purchases one or more items, FrillyThings will pay the cashback website some money for sending that customer to them. The cashback site will then pay some of that money back to the customer as an incentive for them to keep using the cashback site, because the more customers they have, the more money they will make from the retailers that they send those customers to.
Three of the most popular cashback sites in the UK in 2024 are:
The first step in using a cashback site is to sign up with them and create an account. Once you have done this, if there is something you want to buy online, log in to your cashback account and search for the retailer you want to use. Click on the cashback site’s link to that retailer and make your purchase from there, so that the cookies will show the retailer that you visited them via the cashback site.
Once you have made your purchase, the retailer will pay the cashback site for sending you, and the cashback site will pay you your share of the money.
Some cashback sites also offer cashback just for visiting retailers, without having to make a purchase. And sometimes you may be asked to complete a short survey for an extra cashback incentive. So it’s possible to earn some cashback even if you don’t buy anything.
All this means that you can get money back for buying or even just browsing items that you need to buy anyway. Which can be a real boost if you are struggling financially.
There are various ways that you can get your money back from a cashback site.
The way most cashback sites work is by crediting your cashback money to your account on the site. You then need to transfer it from the cashback account into your bank account. However, some sites such as Quidco offer a range of payment options including direct bank transfer, PayPal or gift card.
However, two things to be aware of are firstly that the money may take a few weeks or even months to get to you. This is because your purchase has to be tracked by the cashback site and then the cashback money approved and paid to them by the retailer before the cashback site can transfer it to you.
Secondly, some cashback websites have a minimum amount that your account must reach before you are able to transfer money out of it. So this is something to check when you are deciding which site(s) to sign up for.
If your money is initially paid into your account on the cashback site it’s a good idea to move it out of there and into your bank account as soon as you are able to do so just in case either the rules change, or anything happens to the cashback company. This is more relevant if you are with a small cashback company rather than one of the more established ones.
The exact amount of money you get varies between cashback sites, retailers, and the product you are buying. But a typical cashback rate is somewhere between 1-5% of the cost of the product – and potentially more if you are on a Premium or Plus membership.
According to Quidco, an active user could receive an average of £300 in cashback every year. So it does seem to be worth the effort. And if you put that money into a savings account, it could even save you from taking out a personal loan to buy something else that you need.
But is it all a little too good to be true?
Nothing is perfect, and – like anything else – cashback sites can run into snags.
We’ve already seen that money can take a while to get back to you, and that your account may need to reach a minimum amount before you can withdraw money. But generally, cashback sites do run as expected and you will in time get the cashback you are entitled to.
One thing to be careful of when using cashback sites is to make sure that you only click through to the retailer from the cashback site and not from anywhere else. For example, you may have been browsing that retailer earlier to identify the product(s) that you want. If so, it’s a good idea to clear the cookies on your device first to avoid any confusion. You should be able to do this via your Settings menu. Then login to your cashback account and click on their link to the retailer you want. This should ensure that your visit is tracked as being via the cashback site.
And just guard against the temptation to spend more on the cashback site than you intended, or buy things that you don’t need just to get the cashback. It’s a similar concept to buying lots of items in a sale just because they are a bargain. Be careful not to fall into the trap of overspending just to get more cashback, because you will end up losing more money than you gain.
We hope that the information in this article has helped you to understand more about cashback sites and how they work. Used wisely, they can be a welcome boost to your finances for no extra expense, so could form part of your strategy for getting back on your feet financially. And if you need any additional financial help, remember that Loans2Go offers a range of personal loans – including loans for bad credit – which may be able to help.
For more helpful financial and lifestyle tips, visit us here again soon at Loans 2 Go.
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