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Cashback Programs: The Most Popular Type of Loyalty Scheme

Featured image by Muqamba

What are cashback programs? They are programs that allow consumers to earn back money from their purchases. Customers love these programs, because they can use their savings to pay bills or buy things they want and need.


It is not always easy to convince customers to let go of their hard-earned money. That is why brands are always coming up with marketing programs that reward faithful customers. Online, the competition is even fiercer. For example, many e-commerce sites choose to partner with affiliates like Select Aware. Here, businesses earn a commission when users click through on their way to a purchase.

With Select Aware, consumers get more value for their money by using discount coupons they get from the website. All users are encouraged to share the discount codes they discover. The site then goes on to offer them an even more lucrative way to get savings from their shopping—a cashback program.

What Is a Cashback Program?

Simply put, a cashback program allows consumers to earn money back from their purchases. Think of it as a delayed further discount. A person definitely won’t get rich from pursuing cashback programs. After all, they are meant only as rewards for loyalty.

However, if as a consumer you frequent stores that offer cashback programs, the savings will pile up. Then you can use your savings to pay bills or buy other things you want or need.

You might have already heard about cashback programs from credit card rewards programs. However, there is a big difference among cashback schemes, depending on whether they’re from cards, merchants, or affiliate websites.

Cashback Schemes from Credit Cards

Credit cards generally offer the lowest rates among all the cashback programs out there. The amount usually varies depending on the category the purchase falls under. For example, if a consumer uses their card for unavoidable spending such as groceries, gasoline, or medicine, the cashback rate is fairly low.

On the other hand, cashback programs from some credit cards have a fast turnaround time. Consumers can receive their cashback even as soon as their next statement, where the cashback is credited to offset a portion of their bill.


Cashback Programs from Merchants

Retail merchants have a different way of offering cashback programs. Often, they simply offer loyalty points that consumers can convert to store credit. Although this works similarly to cashback schemes, the reward represents an almost negligible fraction compared to what consumers usually earn from cashback deals.

On the other hand, merchants that clearly offer cashback schemes usually oblige customers to sign up to an online account. Here, their cashback will be stored as credit for their next purchases.

Affiliate Cashback

Compared to other ways consumers can earn cash back, money back through affiliate partners is really the top way to rack up savings. This is how it works:

  • An affiliate or a third party will promote a merchant on their website. Then, every time a shopper clicks their link and makes a purchase, the affiliate earns a commission from that purchase.
  • Depending on how competitive the affiliate is, they can choose either to return to the affiliate the full percentage they earn or a portion of it. Either way, the affiliate can later cash out by way of various payment options. This amount serves as the cashback.
  • It’s a total win-win situation. That’s because, through this scheme, everybody earns from the cashback transaction.

The only downside is that it can take several weeks or even a few of months before anyone can claim their savings as cold hard cash. The reasoning behind this is to discourage fraudsters who would cancel orders after they have received their cashback earnings. But all in all, these kinds of programs are a great deal, because the money keeps growing in your cashback account.

Don’t Miss Out

When you think about it, since the full price of goods we buy usually have amounts allocated for marketing, you truly end up paying more if you never sniff around for cashback options.


Say you and your friend are going to buy the same shirt in the same size and color from an online store. However, instead of going straight to checkout, you look around first for cashback options. Meanwhile, your friend completes their purchase. The shirts the two of you bought have the exact same price and you both pay the same amount.

However, because you chose to use a cashback deal offered via an affiliate’s program, you will receive money back later from this transaction. Your friend, on the other hand, will not. Therefore, he or she ends up paying more!

So inform your friends about the possible discounts they could have. Let them know you grabbed them for yourself and they can, too. After all, what are friends for?

Make the Most of Cashback Programs

Anyone can take advantage of any and all of the cashback programs we discuss here. When you do, you could even triple your savings, depending on the cashback rates you can get. 

For example, if you purchase a lot through online websites—and we bet our next cashback payout that you do—you probably use credit cards to do so. To maximize your cashback earnings, we recommend that you use credit cards that offer cashback programs, especially when purchasing essentials. And don’t just take our word for it. Really make the effort to find out how much you can save when you make this a habit.

Then, be sure to use these cashback credit cards with online merchants who offer cashback programs. Take an afternoon to list the usual things you want to buy. You could even draw up a wish list for early Christmas shopping. Log on to a search engine and really get to work on checking out which merchants offer these goods with a cashback scheme.

Finally, go through an affiliate website that offers a cashback program.

You might not receive all your cash back at the same time. But little by little, you’ll find out how much you were missing out on before. Just remember, sharing is caring! Make sure your loved ones do not miss out on this great savings opportunity.