Online purchases often have additional perks, one of which is Cash Back. These incentives are one of the most acceptable ways to save money, not only during the holiday season but year round.
Before you visit any Cash Back website, make sure you understand this concept and how it can benefit you:
- Understanding How Cash Back Websites Function
- Fun facts About Online Shopping
- What Are You Missing Out On Without Cash Back?
- Tips For Optimizing Your Holiday Savings This Year
Understanding How Cash Back Websites Function
Usually, you win Cash Back each time you use a credit card to make a transaction. Some credit cards may include an additional welcome bonus that allows you to earn extra cash or points if you complete certain purchasing conditions within a specified time frame.
According to experts, there are typically three ways to receive Cash Back incentives on your purchases: a flat rate on all transactions, rotating rewards categories, and tiered rewards categories.
A balanced proportion of your purchases is returned as cash to your bank balance or card with flat-rate Cash Back cards. For instance, if you spend $1,000 on a credit card with a 3% flat Cash Back rate, you will earn $30 regardless of the nature of your purchases.
A credit card with fixed tier rewards may offer 2% Cash Back on gas, 3% Cash Back on dining, and 1% Cash Back on all other purchases. In specific categories, these cards often offer a better rewards rate over flat-rate Cash Back but a reduced rate on transactions that do not fall inside the heightened rewards categories.
Cards with changing rewards categories function similarly to cards with set rewards tiers, except the sections that offer a higher rewards rate change periodically.
For instance, a card may provide 5% Cash Back at supermarkets during the first quarter and 5% cash probably at home renovation stores during the second quarter. Occasionally, you must opt-in to each revolving rewards category each time it changes.
Fun Facts About Online Shopping
This holiday season, 85% of respondents plan to spend at least $100 on internet goods.
Almost 46% of responders are more inclined to use their debit cards for online purchases than any other payment method.
When we delved deeper into how people save money on online purchases, we discovered that credit cards and Cash Back sites are used least frequently. So what is the primary way participants save money? Through a Cash Back website!
35% of respondents utilize a Cash Back website or app when purchasing online. Based on the projected holiday spending for 2019, consumers who do not use a Cash Back site will lose approximately $2.17 billion in Cash Back discounts. Additionally, consumers who do not use Cash Back cards forfeit roughly $1.83 billion in Cash Back payments.
What Are You Missing Out On Without Cash Back?
According to our study, 85% of respondents want to pay at least $100 online this holiday season, and over half (45%) intend to spend over $500. Therefore, not every transaction qualifies for Cash Back. However, even if we assume that only fifty percent of items purchased through a Cash Back site are qualified for Cash Back, the total amount can be substantial.
Consider that you want to spend $750 throughout the holiday season and that the aggregate Cash Back via Cash Back websites for qualified purchases is 4%. You may save $15 if even half of these products qualify for Cash Back.
Because many retailers provide more Cash Back throughout the festive season, there is a significant potential that your savings will be even greater. It is not uncommon for several Cash Back portals to increase or even treble Cash Back offerings for numerous significant retailers. Therefore, the 4% Cash Back that you usually earn during the shopping season may be much over 10%.
According to the National Retail Federation’s projections for online spending during the 2019 festive season, shoppers will likely spend more than $167 billion online this year. However, 65% of respondents to our survey do not utilize Cash Back websites.
If even half of the $167 billion is qualified for Cash Back via a Cash Back website and customers get an average of 4% Cash Back, shoppers may earn over $3.3 billion in Cash Back. On the other hand, if 65 percent of online shoppers do not use a Cash Back gateway, nearly $2.17 billion will be lost.
Tips For Optimizing Your Holiday Savings This Year
If you plan on spending any amount shopping online during the holiday season, there are numerous ways to save money. A little ingenuity can go far, and keeping a plan to control your finances before you start shopping will allow you to get identical items for less money.
The following money-saving strategies should make it easy for you to uncover methods to save money on your gift shopping this year:
Always begin your internet purchases at a Cash Back website. It adds only a few moments to your shopping journey, but the rewards are worth the inconvenience. If you do not yet have a RebatesMe account, you should create one.
RebatesMe is a browser plugin that looks for and automatically applies all available Cash Back at checkout.
Take Away
Numerous Cash Back sites include browser extensions that can be useful if you neglect to begin your shopping trip on the Cash Back site. Many extensions, once loaded, can notify you of active Cash Back on the page you are visiting. It only requires one tap to activate, and it’s a quick and easy way to save money.
However, choosing the one Cash Back website platform that offers maximum and reliable incentives is essential.