In the era of online shopping, smart shoppers always want to find more and more smart savings. The cashback bonus is another of the most effective but not much-used methods. No matter whether you need to purchase groceries, gadgets, clothes, or make travel plans, the cashback bonuses will allow you to earn money back on the purchase that you were going to make anyway.

But what exactly is a cashback bonus, and what can you do to make the most of it? This full-fledged guide can demystify all the details you need to know about shopping online and getting cashback, in addition to the best tips and tricks on how to get the most out of it.

What Is a Cashback Bonus?

Cashback bonus is a cashback rebate/reward you get after making a qualifying purchase. It is normally in terms of the percentage of your total spend and can be offered by:

  • Credit card companies
  • Cashback websites
  • Retailer-specific loyalty programs
  • Cashback apps

Simply put, it is like earning to buy. When a shop gives you a 5% cashback and you make purchases in the amount of $100, you will be refunded $5 in the form of direct deposit, statement credit, or gift card.

Types of Cashback Programs

Possessing an idea of the origins of the cashback bonuses helps to take maximum advantage of them. The most common ones are the following:

1. Credit Card Cashback

Cashback credit cards reward you for each purchase. Others pay a fixed amount back as cash (e.g., 1.5 percent on everything), whereas others will pay rotating categories of periodic bonuses (e.g, 5 percent back at grocery stores, 2 percent back on gasoline).

Best Suited: Daily shopping and large purchases.

2. Cashback Websites

Rakuten, TopCashback, and BeFrugal are websites where stores cooperate with them to pay a portion of what you spend on their site once you access their site.

Best Uses: Online shoppers who utilize retailers regularly.

3. Cashback Apps

Using apps such as Ibotta, Dosh, and Fetch Rewards can help you earn cashback by submitting receipts or connecting a card to receive rewards.

Best For: Grocery, restaurant, and in-store purchases.

4. Retailer Loyalty Programs

Allowed at the stores is the cashback or store credits with the use of membership programs or exclusive offers at a store like Walmart, Target, or Amazon.

Target: The repeat customers of one brand/store.

How Does Cashback Work?

Cashback bonuses are based on the affiliate relations. As a buyer, when you purchase an item by using a cashback site, the business receives a commission from the retailer and then gives a certain percentage of the commission to you.

The basic way of doing this is as follows:

  1. You go to some cashback site such as Rakuten.
  2. Click the link of any store (e.g., Nike, Walmart, or Macy).
  3. Make your purchase at the site of retailer.
  4. The checking site monitors your shopping.
  5. You get a bonus (typical amount within 24-72 hrs), and you are paid on a monthly or every 3 months basis.

Benefits of Cashback Bonuses

What is so important about cashback bonuses? That is why they are a useful financial instrument:

  • Get bonus points on what you already shopped at
  • No additional charges or hidden expenses
  • Combine with coupons and promo codes, and earn loyalty points
  • Can be exchanged for real cold, hard, or hand-produced gift cards
  • Promotes wiser consumption behavior

How to Maximize Cashback While Shopping Online

Provided you want to save and make the most of your cashback, these are the most efficient strategies to get the most out of your money whenever you make an online purchase.

1. Use a Cashback Credit Card

One of the simplest ways you can double your rewards is to match it up with your online purchases using a cashback credit card. The most popular cashback cards are:

  • Chase Freedom Unlimited – 1.5% cashback on any purchase
  • Discover itĀ® Cash Back – you can get 5% in rotating categories
  • CitiĀ® Double Cash Card – With 2% cash back on all purchases made (1% at purchase and 1% at payment).

Pro Tip: Pay the balance before it is due; otherwise, all your cashback will be spent on the interest that will be charged.

2. Stack Cashback Tools for Double or Triple Rewards

Put several sources of cashback together to stack your savings:

  • Shop via the cashback site (such as Rakuten)
  • Cashback credit card
  • Use either Honey or Capital One Shopping to apply a promo code
  • Redemption of a discounted-priced gift card

With this tactic, you get to derive profit on many sides without incurring an additional cost.

3. Activate Cashback Extensions in Your Browser

Add browser extensions such as:

  • Rakuten Extension: Checks on the cashback availability
  • Honey: Automatic couponing and cashback scanning
  • Capital One Shopping: Deal + rewards

The amount that firms are saving in cashback will automatically warn you that cash back is available, so you can never lose a bargain.

4. Monitor Limited-Time and Seasonal Offers

Limited-time offers are commonly offered to customers by retailers and cashback sites, particularly:

  • Black Friday/Cyber Monday
  • Back to School Sales
  • The holiday shopping season
  • Anniversary sale or store-wide sales

In such intervals, the cashback rates would be between 3 and 10% or even higher. Keep on top of the game by setting up an email alert or turning on notifications in your apps.

5. Choose Gift Cards as Redemption Options (If Rewarded Extra)

On some cashback sites, you receive a bonus value in exchange for your cashback in the form of gift cards. As an illustration, you may get a gift card of up to $30 at selected retailers with $25 of cashback.

Look for:

It is a clever trick of maximizing your savings, especially when you shop with those stores frequently.

6. Refer Friends for Bonus Rewards

A lot of cashback websites offer referral programs. Depending on the platform, you can earn anything between $10-$30 or more per referral.

Some examples:

  • Rakuten: $30 per friend who spends $30
  • TopCashback: $25 per referral
  • Ibotta: $10- $20 per sign-up

This is an easy method of increasing your earnings, provided you have a following in terms of social media or chats during group chats.

7. Shop Through Cashback Portals When Booking Travel

Don’t forget to use cashback in the services that include:

  • Expedia
  • Hotels.com
  • Booking.com
  • Airbnb

Booking a trip may be costly, and thus waiving the 2ā€“5% cashback off the total bill can amount to huge savings.

Conclusion

In case you are not earning a cashback bonus when you shop online, you are leaving money on the table. With two or three best combinations of tools, cards, and techniques, you could easily save hundreds and even thousands of dollars on purchases that you were already about to make every year.

Begin with something modest, such as registering at one of the cashback websites, obtaining a cashback card, and adding extensions to the browser. After forming the habit, it will become second nature to stack savings.

Remember: Every dollar countsā€”and cashback lets you earn while you spend.