What is cashback and how is it offered? What are cashback websites and how do they work?

What is cashback and how is it offered? What are cashback websites and how do they work?

We can infer from the name itself that the cashback websites mean getting cashback in return for the purchases we make. Cashbacks are basically rewards given to customers for purchasing goods or financial services from retailers or businesses.

The cashback may be a percentage of the total transaction amount or it may be a fixed sum, this depends on the retailer. The percentage of cashback given to customers is different for different retailers/businesses. Some businesses offer higher rebates as compared to others. Cashbacks are seen by businesses as an ideal way of promotion.

When you are giving cashback to buyers, you don’t need to offer discounts on your products, which avoids injustice being done in your proposals. Meanwhile, buyers also get financial incentives. This allows businesses and retailers to satisfy their customers without offering discounts.

Cashback is offered in many ways. Two common ways of giving cashback are:

  1.     Cashback reward program – It is an incentive program that is carried out by credit card companies where they provide users a percentage of their transaction amount back when they make payments using a credit card. This is the most common method of cashback.
  2.     Cashback websites – Cashback websites are reward websites that provide money to their users when they make purchases from their partner retailers/businesses by clicking through the link provided by these websites. Let us understand these in detail.

The idea behind cashback websites is simple. The cashback websites work as a reward offering medium between the business or retail websites and the end user i.e. the customer, forming a coherent business model. So, what basically happens is that the cashback website directs the customers to the retailer’s website with exclusive offers. Once the customer has made a purchase and the payment is confirmed, the retailer pays the cashback website a percentage of the total transaction amount as commission, which is given back by the cashback website to the customer as cash back after the confirmation of purchase. So, the business/retailer does not actually play any role in giving the cash back to the customer, it is done by the cashback websites. Cashbacks are basically commissions given by retailers to cashback websites for advertising and promotion and directing paying users to their portals/websites.

There are many great cashback websites around the world that provide great cashback offers and give huge benefits to customers. They help to increase the sales of the businesses and help them grow and gain more and more customers with increased customer loyalty.

What are the advantages of cashback websites?

  • Customers can buy a huge number of products and financial services through cashback websites, which partner with all sorts of online retailers including groceries, entertainment, dating services, online banking, flights, insurance policies, broadband deals, etc.
  • Cashback website users get more cash back rewards on referring other people to these websites.
  • Some cashback websites provide 100% cashback.
  • These websites usually have communities of users. So other users get to know and learn from the advice and experiences of previously joined users.
  • There is strong competition between these websites, so they tend to match their offers and deals. By being smart and careful, users can pick the best deals available.

Which are the best cashback websites in India?

Smart buyers who wish to earn while spending money must know about the best cashback websites in India. Some of the best cashback websites in India are listed below. 

  1. GoPaisa
  2. CouponDunia
  3. CashKaro
  4. Pennyful
  5. MagicPin
  6. TopCashback
  7. PaisaWapas
  8. Zingoy
  9. Baggout
  10. CashVapas

 These are some of the top cashback websites that everyone who wants to save money and get the best deals, should know about. They have the best cashback offers and deals and other amazing benefits. They partner with thousands of e-commerce websites and famous online shopping platforms like Amazon, Flipkart, etc. Make sure to check them out!

Nilesh Pandey

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