Cashback bonuses allow consumers to earn money on purchases by receiving a percentage of the amount spent back. With more stores and credit card companies offering impressive cash rewards, these bonuses are becoming increasingly popular. But how exactly do they work and how can savvy shoppers take advantage of them?
How Do Cashback Bonuses Work?
Cashback bonuses go by different names – cash rewards, cash rebates and cash back rewards – but all refer to money given back to the customer calculated as a percentage of a purchase. For example, if you buy a $100 pair of shoes with a credit card that offers 5% cash back on clothing purchases, you would earn $5 in rewards.
These rewards at Wildfortune Casino are deposited into your account by the company providing them. With credit cards, the cash back earned is usually applied as a statement credit to offset your balance. Retailers and apps send cash rewards directly to your bank account or award account balance you can redeem for gift cards or other perks.
Two Main Types of Cashback Offers
There are two predominant models for how consumers can earn cashback bonuses:
Credit Card Rewards: Cash back credit cards offer the most lucrative way to earn. Popular cards offer 1-6% back in varied bonus categories like gas, groceries, travel and more. Some cards offer a flat rate while others allow you to activate targeted quarterly bonuses.
Retailer Programs and Apps: Stores directly reward loyal customers through promotions. Apps like Rakuten facilitate earning cash back at over 3,500 shops. Online shopping portals are another way to score additional percentage-based rewards for purchases.
Cash Back Earnings Maximization
With a little strategizing, consumers can grow their cashback bonuses into some major savings. Here are six tips to maximize cash back rewards:
1. Use Bonus Category Credit Cards
Choose cards that align biggest spends with highest bonuses:
| Card Name | Best Bonus Categories | Potential Yearly Earnings* |
| Chase Freedom Flex | Rotating categories – 5% cashback | $750 |
| Citi Custom Cash Card | Top eligible spend category – 5% | $500 |
| Amex Blue Cash Preferred | 6% on groceries, 3% on transit and gas | $850 |
*Based on $500 monthly spend per category
The more bonus categories align with big recurring expenses like groceries and commuting costs, the faster cash back earnings will grow.
2. Stack Earnings with Retail Programs
Many retailer loyalty programs offer 1-10% back in rewards dollars to redeem later. Combining these store discounts with that from a credit card compounds savings. For example, getting 6% from a grocery credit card plus 2% back from the supermarket loyalty program equals 8% cash back.
3. Pay with Cash Back Apps and Browser Extensions
Apps like Rakuten, CouponCabin and Honey install a browser extension that automatically applies available coupons plus awards cash back at supported online stores. These easy earnings stack with other bonuses. Make sure to activate the offers before purchasing – earning is not automatic.
4. Take Advantage of New Cardholder Specials
The best credit card bonus offers are usually reserved for new applicants – some worth hundreds of dollars after meeting initial spend requirements. Experienced credit card users open new accounts specifically for these new member perks then cancel or product change the cards after a year.
5. Redeem for Maximum Value
Some programs only allow statement credits or merchandise purchases with cash rewards. Optimizing value depends on redeeming into the highest cash value – some cards allow cash back earned to offset financial statement balances with no loss in redemption value.
6. Pool Rewards from Business and Personal Cards
Business credit cards often offer the most lucrative welcome bonuses and highest category bonuses – yet the rewards can offset personal credit card and expense balances. Consulting a tax advisor on applicable rules is key but combining personal and business earnings can mean hitting elite status and cash back caps quicker.
Common Cashback Bonus Pitfalls
While most cashback bonuses provide an effortless way to save, a few quirks can cut into earnings:
- Activating bonus offers – Simply having a card or account isn’t enough to earn. Opting into promotions and manually activating quarterly bonuses is essential for max rewards.
- Processing delays – Cash back earnings from credit cards and retailer programs can take 1-2 billing cycles to appear as balances. Patience is key after initially meeting requirements.
- Returns and adjustments – Cashback totals can be rescinded or debited to correct returns or credit transactions after the fact. Check reward statements routinely to ensure accuracy.
- Ineligible spending – Gifting purchases, buying cash equivalents like prepaid cards, and certain financial transactions do not qualify to earn bonuses. Reading terms prevents unpleasant surprises later.
Put Cash Back Dollars to Work
Responsibly taking advantage of cashback bonuses earns money savvy consumers hundreds of dollars annually in easy rebates. That passive income can accelerate debt payoffs, build up emergency savings or simply provide bonus budget padding for less financial stress. With lucrative credit card and retailer reward programs continually competing for wallet share through tempting promotions, letting those percentage-based rebates consistently pad pocketbooks is a simple strategy for easy savings over time.
