Unfortunately, some shady cashback services have given ground to many rumors about all such services being unreliable frauds.
However, that cannot be further from the truth. Cashback portals actually work – they can help you save and make money while shopping online. Essentially, it’s the same as shopping with a discount, only the discount is received in form of actual money after your purchase arrives.
Where does cashback come from and who pays the money?
It’s very simple! It’s no mystery to many people that coupon websites make lots of money advertising companies and offer decent discounts at the same time. Cash back services work in the same way, with one exception: you get some cash back as well as coupons and promo codes!
Online stores pay cashback platforms for attracting real customers and real purchases, not just showing an ad or clicking on a link. This way, the cash back platforms can share some of the profit with their users.
The online store will normally return 1% to 35% of the amount of the purchase to the cashback service (thus, the comeback from a $100 purchase may be anywhere between $1 and $35). The cashback service then keeps 40% of the received money, giving 60% to the person that had made the purchase.
What’s the catch?
In case you have decided to sign up on a cashback service, you should put effort into choosing a reliable one. You can read reviews and look up ratings of the best cashback platforms on CashbackHunter.com (we recommend to choose from the most popular ones). And below we will do our best to tell you about potential pitfalls and nuances of working with a cashback site and what could happen should you be tempted by high cashback rates of fraudulent platforms:
How can cashback services deceive you?
Below you can see all the ways cashback websites take advantage of their users:
- Cashback is not added after making a purchase
- Large minimum cashback withdrawal amount
- Large commission for cash withdrawal
- Few withdrawal options
- Stating false amount of cashback (higher on the website and lower in reality)
- Not all withdrawal options are available
- Fake payments (money is deducted from the account but isn’t paid)
- Tech support doesn’t help with users’ questions and complaints
- Resetting of the account balance, user blocking, etc.
- Services give temporary high cash back rates (only for the first few purchases) and then cut it down 2-3 times
- Services that offer large cashbacks, will only make the first couple of payments and will then ignore the user
- “Shaving” the customer, services will lower the cashback amount and won’t register some orders
- Giving very little cashback, taking most of the money to themselves.
Of course, those are the strategies that only shady cashback services will use. Should you choose a reliable service, you will never encounter anything of the kind. Have a great shopping, everyone, and lots of cashback too!