What is cash back?
When you make a qualified purchase using a cash-back service, you essentially get a portion of the purchase price back. In some cases, you’ll save money upfront via services that automatically apply coupon codes. In other cases, you’ll accumulate rewards when making a purchase. Those rewards can then be redeemed as cash back or gift cards.
Cash-back rates aren’t static. These apps partner with a range of shopping destinations and e-commerce sites, so rewards rates and offers change regularly.
How do cash-back apps work?
While cash-back apps have certain distinguishing factors, the business model is relatively uniform. Retailers are seeking to drive business and acquire customers, and they can personalize offers using the data from cash-back apps. The cash-back apps take a cut from the sale and split that commission with you. You’ll get your rewards in the form of a rebate at checkout, or you’ll accumulate rewards that can eventually be converted to cash back or gift cards.
Pros and cons of cash-back apps
Before you sign up for a cash-back app, it’s important to understand the potential upsides and drawbacks.
":"022db3b7-516b-4e95-9d1b-00fea0233579","title":"Pros","content":"<ul><li><b>Save money: <\/b><span style="font-weight: 400">If you already planned to buy an item, these apps can help you save on the price or get cash back.<\/span><\/li><li><b>Bonus opportunities: <\/b><span style="font-weight: 400">With welcome and referral bonuses, some apps offer elevated earning potential.<\/span><\/li><li><b>Automatic updates:<\/b><span style="font-weight: 400"> Instead of constantly checking back for sales and discounts on products you want, some cash-back apps will do the work for you and send notifications about price drops.<\/span><\/li><\/ul>"},{"id":"4fccefc1-9e2c-40ff-957c-32844f024c80","title":"Cons","content":"<ul><li><b>Potential to overspend:<\/b><span style="font-weight: 400"> A lot of cash-back apps have location-based push notifications that alert you to nearby deals. If you weren\u2019t originally planning on making the purchase, it\u2019s probably not saving you money.<\/span><\/li><li><b>Time consuming:<\/b><span style="font-weight: 400"> Some of these apps require cumbersome tasks, such as scanning receipts and sharing codes with friends.<\/span><\/li><li><b>Lack of privacy:<\/b><span style="font-weight: 400"> Every cash-back app includes some statement about how it \u201ctakes your privacy very seriously,\u201d but let\u2019s face it: You\u2019re handing over data about your purchasing patterns and where you\u2019re physically spending your time (in the case of location-based offers). Don\u2019t be surprised if you wind up on more mailing lists and receive more advertisements.<\/span><\/li><\/ul>"}]" edition="us">Who should use a cash-back app?
If you’re feeling the pinch of higher prices, a cash-back app can help you save money. However, it’s important to compare apps based on your spending habits. Apps have partnerships with different brands and retailers, so you should choose one that aligns with your current spending habits.
Additionally, anyone using a cash-back app should have the time required to take advantage of them. Some apps involve scrolling through what feels like a mile-long list of offers to activate, and others require uploading photos of your receipts. Cash-back apps also each have a minimum redemption amount, so you may not see the savings immediately. It’s not necessarily easy, but it can be worth it.
What to consider before signing up for a cash-back app
Before you sign up for a cash-back app, keep this advice in mind.
- Never pay a fee. If a site asks you for payment, it’s time to move your search to a more reputable service.
- Scam sites. Avoid giving out your personal information unless you’re sure that the app is a well-known and highly reviewed service.
- Keep your expectations realistic. Cash-back apps aren’t going to save you a huge pile of money, and it can take a while to earn rewards. Use them as one part of your strategy for lowering overall expenses.
- There might be better deals. Though cash-back apps use sophisticated algorithms, it never hurts to do your own bargain hunting to make sure you aren’t missing out on bigger savings directly through retailers.
How to get the most out of a cash-back app
Once you download a cash-back app to your phone and/or add the extension to your browser, it’s up to you to maximize its potential. Follow these three tips to rack up the most meaningful rewards.
- Regularly review offers: When you’re ready to shop for something -- whether it’s groceries for the week or a new pair of shoes for the winter -- look through offers and retailer details in the app to see where you stand to gain the most.
- Have a plan for what you’re going to do with the savings: If you’re using a cash-back service that offers cash (not gift cards), be strategic about what you do with your rewards. Depositing the money in a high-yield savings account will let you earn even more cash by accruing interest.
- Pair your cash-back app with a cash-back credit card: Compare the best cash-back credit cards to link to your cash-back app so you can accelerate your savings. Some cash-back cards pay 1% or 2% back on all your purchases, but others pay higher rates in certain categories, such as 3% at gas stations and up to 6% at grocery stores.
Other cash-back apps we researched
FAQs
No. Cash-back apps are mobile apps or extensions for your desktop browser that help you save money or receive cash back by taking advantage of coupons and offers with select retailers. A cash-back credit card rewards cardholders for their spending in the form of statement credits or cash. You’ll need to complete an application and be approved to get a credit card. The two products can work well together, though. You can pair a cash-back credit card with a cash-back app to score bigger rewards.
The best cash-back apps are free. In fact, if a cash-back app asks you to pay for the service, you should be skeptical and avoid handing over any information.
Our methodology
We tried more than a dozen cash-back services to determine the best ones, focusing on a few key attributes of the user experience. We reviewed the ease of the receipt-uploading process and the time involved to use automated search tools for coupon codes. We looked at how users earn money back (in the form of cash, gift cards and/or coupons) and the range of retailers available on each app. Finally, we considered how other users evaluate the mobile app experience on both iPhone and Android operating systems. All our apps have at least a 4.5 out of 5 stars on both app stores.
