Cashback sites explained - Which? (2024)

What is cashback?

Cashback sites pay you a cash reward when you click through from them to buy goods or financial products.

Websites such as Quidco and TopCashback offer cashback on a variety of goods and services, from mobile phones to car insurance and bank accounts to broadband.

Here, we explain how to use a cashback website and offer expert tips on maximising your earnings.

Cashback sites

TopCashback is free to use and also has a premium version which costs up to £5 of what you earn each year. It has 4,370 merchants from high street names to smaller, niche online sellers. It claims members earn an average of £345 cashback per year and you can withdraw this into your bank account, Paypal or convert it into gift cards.

Quidcois also free to use and also has a premium version which costs £1 of the cashback you earn each month. It has more than with 4,500 retailers. Members earn an average of £300 cashback per year which can be withdrawn into your bank account, Paypal or converted into gift cards.

Rakutenis arelatively new cashback site which claims to have more than 500 retail partners and is free to use. You can transfer your cashback into your bank account, or you can convert it into Rakuten Points which have extra value. For example £1 of cashback = £1.20 worth of points. These can be spent on gift vouchers, movies, Rakuten TV, eBooks and audiobooks.

How to use cashback sites

The majority of cashback sites work in the same way although there are differences in fees, joining bonuses and how the money is paid. Here's a step-by-step guide to getting yourself set up:

1. Choose a cashback website

Register with one or more cashback sites. Most sites are free to join, but some charge an annual fee either as a matter of course or if you choose a premium account.

2. Search for deals

If you want to purchase a particular product or service, search the website to see if your favourite retailers or preferred financial services firms are offering deals.

3. Click the link provided

Once you find a deal you want to cash in on, visit the retailer by clicking on the link provided by the cashback site rather than going direct. If you've previously visited this retailer's website, delete your internet cookies before clicking through, so the cashback site is recognised as the referral source.

4. Complete the purchase

When you complete your purchase, the retailer sends the commission to your cashback site. In turn, it pays a slice of this money into your bank or PayPal account. You may need to reach a certain cashback threshold before you can withdraw funds.

How to make the most of cashback sites

Get your friends to sign up

Many cashback sites give you a bonus if you refer them to a friend.

Do this by sending an email using the website's dedicated referrals page. The email will contain a link to the cashback site with a personalised referral code to confirm it was you who gave the recommendation.

Typically, you won't get the bonus until your friends earn a certain amount of cashback themselves, so encourage them to shop after they've joined.

Make use of cashback freebies

Both Quidco and TopCashback include offers that allow you to make money for free.

You can earn free cashback by completing surveys, getting quotes from price comparison websites or entering prize draws.

The rewards offered are rarely astounding but can be worth making use of if you have a few minutes to spare.

Check utility and financial product offers

It's not just everyday purchases that can earn you cashback. The real windfalls come when you're signing up to a service for a period of months or years.

You could earn hundreds of pounds by signing up for a new broadband or phone contract through cashback sites. Check whether credit card, insurance or mobile phone providers are registered on cashback sites before locking yourself into a contract with them.

Make use of holiday cashback

It's also possible to earn big money by booking your holiday through a cashback site. There are often great deals available on flights and hotels, as well as extras such as car hire, travel insurance and airport car parking.

Withdraw funds as a gift card

Quidco and TopCashback both allow you to withdraw the cashback you've earned via bank transfer or PayPal.

However, if you opt to withdraw funds as a gift card with a specific retailer, you'll earn a top-up on your cashback.

When you go to withdraw funds from your Quidco or TopCashback account, you'll be shown a large list of retailers offering gift cards.

Earn cashback on the high street

You can earn cashback on high street purchases via Quidco's ClickSnap app. This app lists a wide range of offline cashback deals, which you can claim by buying the product then uploading a photo of the receipt.

You can also earn offline cashback via TopCashback's In-Store cashback scheme. Once you register your debit or credit card with the scheme, a host of available deals will appear on the TopCashback website.

Simply activate the deal you want to, use the registered card to buy the product and the cashback will automatically appear in your account.

Use cashback credit cards

You can earn an extra bonus on your online purchases by paying for your goods with a cashback credit card, which will pay you back a percentage of what you spend on them.

Read our expert reviews of the best cashback credit cards to explore your options. To avoid being charged interest, make sure you pay off your balance in full at the end of the month.

Find out more:best cashback credit cards

Cashback site pitfalls

While cashback sites are a great way to earn extra money on purchases, there are a number of pitfalls to be aware of. Here are four to keep in mind.

1. Watch out for cookie trails

The most important thing to understand about cashback sites is the online journey you need to take to claim the money. This is tracked by small files called 'cookies' that contain useful information about your browsing history.

To be paid your cashback, there must be a clear 'cookie trail' which shows it was the cashback website that led you to the retailer's website.

If you've already browsed an online retailer's website and then decide to take advantage of a cashback promotion for this site, you'll first need to delete your cookies. This will wipe your earlier records of being on that site - and set up a new cookie trail between the cashback site and online retailer.

If you don't do this, the absence of a clear cookie trail could leave you without any cashback. Once you've made your first purchase at an online retailer through the cashback site, it's usually no problem to keep earning cashback on future purchases.

Clearing your cookies could result in the loss of some useful information, such as pre-filled passwords on other websites that you may use, although most browsers give you the option to keep these stored.

2. Watch out for cashback site fees

It's free to register a basic account with Quidco and TopCashback, but both websites offer a premium tier.

On both websites, premium membership unlocks improved cashback rates, bespoke promotions, comprehensive customer service and the removal of sponsored adverts, among other features.

Quidco Premium costs £1 of the cashback you earn each month, while TopCashback Plus costs up to £5 of what you earn each year. So neither site requires an upfront payment.

Nevertheless, some of the lesser-known websites may charge a fee to join, or require you to earn a substantial amount of cashback before you can transfer funds into your bank account.

3. Cashback sites don't always have the best bargains

The lure of cashback can throw you off the scent of cheaper deals elsewhere. A £300 home insurance policy with £75 cashback is far from a bargain if you can get the same cover elsewhere for £150.

Also, if you have a discount code for a website, you usually can't claim cashback on top of that. If this is the case, check whether the code offers a bigger discount.

4. Beware late or failed cashback payments

Cashback can sometimes take many weeks to reach your account. In some cases, the transaction may fail to track altogether.

This is commonly due to a lack of a cookie trail, but could also be down to issues with the affiliate links that transmit the payments between retailers and cashback sites.

If you fail to receive money owed to you, write to the site as quickly as possible via its official cashback claim link. We'd suggest sticking to the bigger sites such as Quidco or TopCashback in order to reduce the risk of losing out.

Find out more:returning online purchases

Video: three things to know about cashback sites

Our short video will talk you through three important things to remember about cashback websites.

  • Have you successfully used our tips to help save or make money? We'd love to hear from you. Get in touch at money-letters@which.co.uk.
Cashback sites explained - Which? (2024)

FAQs

Cashback sites explained - Which? ›

Cash back

Cash back
Cash back is a form of credit card rewards you earn by making purchases with your credit card. You can redeem those rewards for statement credits, account deposits or purchases. In some cases, you can convert the cash back rewards into points and use them for other types of redemptions.
https://www.bankrate.com › cash-back › how-cash-back-works
sites give you the opportunity to earn a small percentage of cash back on qualifying purchases made through the site or app. Once your cash back earnings hit a certain amount, you're able to withdraw the money into a bank account or have your payout sent to a financial service like PayPal.

Is it safe to use cashback sites? ›

Cashback does seem to be a safe and legitimate site, but you should use it with caution. If you're not comfortable giving away personal data to the site, or to its third-party brands, you should steer clear.

How do you stack cashback sites? ›

FAQs about stacking rewards

You can stack cash back by planning your purchases so you take advantage of multiple rewards programs at the same time. One of the easiest ways to do this is to use a rebate or cashback app or browser extension and then pay for your purchases with a cashback credit card.

Are cash back apps safe? ›

Cash back apps are generally safe. Cash back apps typically utilize encryption and secure payment methods to protect information. However, safety and security may vary among apps. Be cautious of apps requesting excessive personal data and permissions.

What are the different types of cashback? ›

The three most common forms of cashback include (1) flat rate cashback, (2) tiered rate cashback, and (3) different rate cashback depending on the type of spend. Cashback is generally redeemed through (1) a bank deposit, (2) offsetting your credit card balance, or (3) a gift card.

What are the disadvantages of cashback rewards? ›

There are a few drawbacks to a cash-back rewards card, including a higher-than-usual APR, having to wait to access your cash-back funds, and a cap on how much you can earn each year. Also, when it comes to travel rewards such as airline miles, sometimes the miles are worth more than the cash.

How do cashback sites make money? ›

The answer is simple: referrals. Every time you use a cash back app to make a purchase, a retailer gets paid — and since retailers know the value of gaining new customers and maintaining loyal ones, they are more than happy to pay cash back sites in exchange for sending shoppers their way.

How do cashback sites track? ›

Cashback sites take advantage of the way commercial payments from one website to another work. They use affiliate links, which allow the retailer to track where the traffic is coming from and then pay the cashback sites for the lead.

Is Capital One Shopping and Rakuten the same? ›

Rakuten: This online tool works similarly to Capital One Shopping but delivers your rewards in the form of cash back instead of gift cards.

Can you use both Rakuten and TopCashBack? ›

Basically, you can use TopCashBack and Rakuten to earn cash back and other benefits by logging onto either site, searching for stores where you plan to make an online purchase, following the links provided and making your purchase.

Which is better, Rakuten or Ibotta? ›

Although both companies work with a variety of retailers, Ibotta generally has more offers at grocery and convenience stores, while Rakuten has a larger selection of department stores and popular brand names.

Is cash back really free? ›

Cash back is not free money, but rather a reward for making purchases on expenses like gas, groceries, restaurant meals or even streaming services.

Is there a catch to cash back? ›

If you're not able to pay off your balance each month, the interest can far outweigh the rewards. The worst case scenario is having a rewards card, such as a cash-back card, and only paying the minimum each month.

How does cashback work for dummies? ›

Imagine getting a discount on every purchase you make. That, in effect, is what cash back credit cards offer. These types of cards give you a percentage of cash back on every qualifying purchase you make. If a credit card offers 1.5 percent cash back on purchases, for example, you'll earn 1.5 cents per dollar spent.

What is the best way to use cashback? ›

Redeem your cash back for a statement credit

Credit card debt often comes with a higher interest rate than other types of debt, so you want to prioritize eliminating any balance you may have sooner rather than later. Redeem your cash back for a statement credit to decrease your overall balance.

Does cashback show up on a bank statement? ›

Cash back reward credits will show up on your credit card statement, and credit cardholders may take advantage of different options, including these: Sometimes, they will be able to roll their rewards into a lump sum payment that they put toward their monthly credit card debt.

How trustworthy is cashback? ›

cashback is legitimate and you can sign up by clicking HERE. A brief background check of cashback shows that it is owned by Submission Technology LTD which is a company based in the United Kingdom with more than 40 employees.

What is the best cash back shopping site? ›

  • Best cash back savings appIbotta. Learn More.
  • Best cash back app overallFetch. Read Review.
  • Best cash back app for online and in-person shoppingDosh. Read Review.
  • Best cash back app for online shoppersRakuten. Read Review.
  • Best cash back app for gas stationsCheckout 51. Read Review.
Apr 10, 2024

Does cashback go into my account? ›

Today, cash-back cards allow you to earn money back on various purchases at the end of each statement cycle. Your cash rewards can then be used as a statement credit, deposited to your bank account or redeemed a few other ways.

What are the benefits of cashback sites? ›

You can buy a surprising number of different products and services through cashback sites, including groceries, entertainment, dating services, online banking, flights, and breakdown cover. You can earn even more cashback by referring others. Some sites will even give you a percentage of their purchases.

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