What is cashback and how does it work

If you are searching the easy ways to earn cash online , you should definitely know what is cashback. Cashback is a system offered by many websites or credit card companies. You shop as usually would do and they pay you small amount of money. Yes, it is small and we do not promise, that you will get rich in two or three days, but remember: “Big things have small beginnings". Look at this instead as a bonus for the money you would spend regardless of whether you were earning rewards.

Cashback reward program

This is a program used by credit card companies, like american express , where they pay back a percentage of the money spent by the card holder. Credit card issuers need those programs to encourage clients to use their card. They give the card holder points or a monetary amount. This monetary amount, is usually called cash back reward or just cashback.

Merchants which accept payment using credit card, pay a percentage of the money in commission to their merchant services provider or bank. Banks does not allow Merchants to charge a higher price when a credit card is used as opposed to paying by cash. It means, that there is no penalty for a card holder to use their credit card. The credit card issuer bank is sharing some of this commission with the card holder to incentivise them to use the credit card instead of the cash, when making a payment.

Cashback websites

There are some sites that offer cashback, while you shop online. Those websites earn money by advertising merchants. They send a paying customer to merchant's website, where people can buy some products online. After transaction, the merchant pays some percentage of product price as a commission to cashback site. After that site sends small amount of money from this commission to you. The percentage is not too big, but this is the safest and easiest way to earn cash online.

This is very eligible program for the merchant, because they don't take any part in issuing the cashback to you. Also they got advertisement on some popular web-pages.

Users can know how much they get back for their purchases at each specific merchant before they buy product. All sites have different rules, some will pay you cash back after two weeks, while others need months. They usually pay users in the form of bank transfers, gift cards or online sites such as PayPal. Some of them place a limit on a user's account, so that a user needs to make several transactions to receive a money back.

Many cashback sites have referral programs. besides the cashback they pay some money to users per invited friend on their web-page. One of them is Ebates, where you can get $10 from this: registration link

Read original article on our personal blog: what is cashback