What is Cashback? How Does Cashback Work? How To Earn Cashback

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The System That Pays As You Shop: Cashback

In the last few years, when we witnessed the incredible rapid growth of technology, there have been great developments in the field of payment technologies.

In the field of financial services, where cash usage is constantly decreasing and card payment systems have become more useful with developments such as chip cards, contactless payment and mobile wallets, card providers have started to add new features to differentiate their products.

The cashback system, which is widely used in many countries, especially in the USA, where there is a lot of competition in card payment services, is one of these features.

Today it is possible to get cashback when shopping in almost all online stores. However, not everyone and always knows what a cashback is, how it works and how to buy it. That’s why in this article we will tell you everything you need to know about cashback.

What is Cashback?

The cashback is the system in which a part of your expenditure is returned to your card when you spend with your card. There are cards that offer a low rate of cashback for all expenses, as well as cards that offer cashback only for spending at contracted points but at much higher rates.

To give an example of the cashback system, Apple Card users pay 1% of their spend when they pay with their cards at any store, 2% of their spend when they pay with Apple Card at a store that accepts Apple Pay payments, and Apple at contracted points. When they pay with a card, they earn 3% of the money back they spend.

How does Cashback Work, Under Which Conditions to Earn Cashback?

X company signs a partnership agreement with online stores. Under the agreement, online stores pay a commission to X company for the customers they refer to. Company X, in turn, offers the buyer both special discounts in that store and a portion of the commission in cashback. As a result, all three parties benefit from the operation.

How is the cashback amount calculated? Of course, depending on the store, part of the amount paid is calculated as a commission, and hence the amount of cashback. To understand how cashback works, it is necessary to get acquainted with the working principle:

  1. The buyer opens the X companie’s website, finds the store he needs in the catalog and goes there. The system automatically registers this transition.
  2. The buyer pays by choosing a product or service.
  3. The seller pays the agreed commission to X company after the payment is completed.
  4. X company shares the commission with the buyer.

In return for what you can earn cashback

It is possible to get cashback for products and services from the following categories:

  • Clothing, shoes, accessories, decorations;
  • Air ticket, Hotel, Taxi and other services;
  • Home appliances and electronics;
  • Travel packages and tours;
  • Virtual games, toys;
  • Health and beauty products;
  • Other.

How to earn cashback?

Cashback is calculated for each purchase, but for this you need to follow a few rules:

  • Go to the online store after logging in to your personal account on X company Cashback is not charged for a single store transfer.
  • Once the product you ordered has reached you, you can speed up the cashback calculation by confirming that you bought the product in the online store.
  • Just make an online payment by shopping online. Cashback is not charged without making orders by phone or paying in cash.
  • Do not refuse the order in whole or in part. Cashback is charged for full payment, so cancellation of part of the order may result in cancellation of the entire cashback.

Is there a cashback if the buyer refuses the product after ordering? No, cashback is not charged if the product is returned.

 

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