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Rise of the cashback site

Rise of the cashback site

Category: Money Saving

Updated: 13/06/2013
First Published: 13/06/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Cashback websites have risen in popularity over recent years, offering consumers rewards in return for spending.

These websites work by providing consumers with a cut of the money from items or services purchased via its affiliated retailers, ranging from holiday and insurance products to everyday items such as toiletries and groceries.

The prospect of being paid to spend will appeal to many shoppers, particularly in the current climate of austerity, however, it is always best to bear in mind a few points before making a purchase.

Check online for the average waiting time for cashback payments

  • Payments can take a while to come through, often depending on the size of the purchase.
    It is also important to remember that payments will not necessarily be paid immediately and that cashback for holidays will only be made after you return home.

Money may be paid into your cashback account

  • Bear in mind that the payment could be made to your cashback account, not your bank account. Money can be transferred to your normal bank account once the payment has been credited to your cashback account, although this could create further delays if you were hoping to receive a payment sooner rather than later.

Only purchase items or services if you think it is a good deal

  • Compare prices before making a purchase to ensure you really are bagging a bargain and never make a purchase based solely on the promise of receiving money back.

Consider the fees involved

  • Most sites do not charge a fee in order for you to sign up and become a member. Remember, however, that an annual membership fee may be taken as part of your cashback amount.

Cashback sites are not regulated

  • In the event of a cashback company collapsing, you may struggle to receive any money straight away. Receiving any money that is owed to you would be the same as with any other creditor and would normally involve waiting to see what assets remain before claiming.

What next?

Compare the best cashback credit cards

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

 
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