Jasmine Birtles
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Maximizing Cashback and Rewards Programs When Shopping Online
Moneymagpie Team
7th Jan 2025
Who doesn’t love saving money while shopping online? Cashback and rewards programs have become one of the easiest ways to do just that. But most people aren’t using them to their full potential.
From missed cashback offers to unclaimed rewards points, shoppers are leaving money on the table every day.
In this guide, we’ll show you how to maximize cashback, stack rewards, and make the most of every online shopping experience.
Who doesn’t love saving money while shopping online? Cashback and rewards programs have become one of the easiest ways to do just that. But most people aren’t using them to their full potential.
From missed cashback offers to unclaimed rewards points, shoppers are leaving money on the table every day.
In this guide, we’ll show you how to maximize cashback, stack rewards, and make the most of every online shopping experience.
Types of Cashback and Rewards Programs
Cashback and rewards programs come in different forms, each offering unique benefits to online shoppers. Here are the 7 most common types of cashback and rewards programs and how you can use them to your advantage.
Cashback Credit Cards
Cashback credit cards are one of the most popular and widely used types of cashback programs. Taylor Morgan, Head of Marketing at Rush Custom Tees, shares, “Every time you make a purchase with a cashback credit card, a percentage of the total amount is returned to you as cash. This cashback can either be applied as a statement credit, direct deposit, or sometimes as gift cards or other rewards.”
These cards usually offer different types of cashback rates. Some have flat-rate cashback, where you get the same percentage on every purchase (like 1.5% on all spending). Others have category-based rates, where you might earn 5% on groceries, dining, or gas and 1% on everything else. Some cards also offer rotating bonus categories that change every few months, requiring you to activate them to earn the higher cashback.
“Cashback credit cards are ideal for everyday spending, and since most people use credit cards for groceries, dining, and online shopping, it’s one of the easiest ways to earn cashback consistently,” adds Gerald Ming, SEO expert at BatikSingapore.com.
Retailer Loyalty Programs
Many retailers run their own loyalty programs to encourage repeat shopping. These programs reward customers with points, cashback, or store credit when they shop at the retailer’s store or website. Unlike cashback credit cards that work across multiple retailers, loyalty programs are specific to one store or brand.
When you shop with these retailers, you earn points or cashback, which you can later redeem for discounts, free items, or store credit. Loyalty programs also offer exclusive member-only deals, early access to sales, and personalized promotions.
These programs are perfect for people who frequently shop at the same stores. If you’re a regular Target shopper, for instance, being part of the Target Circle program gives you access to extra savings and cashback on items you would have bought anyway.
Cashback Shopping Apps and Websites
Cashback apps and websites let you earn cashback on your online purchases when you shop through their platform, adds Dan Close, Founder and CEO at We Buy Houses in Kentucky. Instead of going directly to the retailer’s website, you first visit a cashback platform. From there, you click on the store you want to shop at, make your purchase, and the cashback app tracks your purchase.
The cashback you earn is a percentage of your purchase total, and it varies by retailer and platform. These platforms are great for online shoppers — especially during large sales events like Black Friday or Cyber Monday when cashback rates are higher. If you shop online frequently, cashback websites can help you save on everything from electronics to clothes.
Bank and Payment App Cashback Offers
Many banks and financial apps offer exclusive cashback deals to their customers. These deals are often found within the bank’s app or website, and customers must activate them to qualify.
They have cash back programs that provide extra rewards when you use your debit or credit card to shop at certain retailers.
Richard McKay, CEO & Managing Director of Sprung Gym Flooring, explains, “PayPal and Venmo also offer cashback offers. For example, PayPal may offer 10% cashback when you check out with PayPal at a specific retailer. These offers are often seasonal or tied to special promotions.”
These types of cashback programs are a bit different from traditional cashback credit cards. Instead of earning cash back automatically on every purchase, you have to activate specific offers manually.
However, since these offers stack with other cashback opportunities, they can help you earn even more rewards on purchases you were going to make anyway.
How to Maximize Cashback and Rewards
Here’s how to maximize cashback and rewards.
Stack Cashback from Multiple Sources
Stacking cashback from multiple sources is one of the most effective ways to increase your savings. Pareen Sehat MC, RCC – Clinical Director at Well Beings Counselling, shares, “Most people don’t realize that you can combine cashback credit cards, retailer loyalty programs, cashback websites, and browser extensions on a single purchase. Each of these methods works independently, but when used together, they multiply your total cashback.”
Here’s how it works.
- Start by visiting a cashback website like Money Magpie. This ensures your purchase is tracked for cashback.
- Use a cashback browser extension to activate additional cashback while browsing the store’s site.
- Pay with a cashback credit card to earn an additional percentage back.
- If the retailer has a loyalty program, log in to earn points on top of the cashback.
Plan Purchases Around Bonus Cashback Offers
To maximize cashback, it’s smart to time your purchases around limited-time offers and promotions. In an interview, Adam Fard, Founder & Head of Design at AI for UX Design, adds, “Many cashback platforms and credit cards offer extra cashback during special sales, holidays, or exclusive shopping events.”
Here’s how you can plan purchases effectively.
- Watch for special promotions where cashback rates increase for a limited time.
- Check if your credit card has quarterly cash back bonuses, where certain categories (like groceries or gas) offer higher cashback rates.
- Plan larger purchases around shopping events like sales and exclusive promotional days.
- Sign up for email alerts from cashback apps and loyalty programs to be notified of bonus offers.
Use Cashback Apps for In-Store Purchases
Many people think cashback is only available for online shopping, but that’s not true. Sumeer Kaur, Founder of Salwar Kameez, mentions, “Cashback apps offer rewards for in-store purchases. This method works by letting you activate offers before you shop, then scanning your receipt after you make your purchase.”
Here’s how you can maximize cashback for in-store shopping:
- Open the cashback app and browse offers for specific products, like snacks or cleaning supplies.
- Activate the offers for the items you plan to buy before heading to the store.
- After shopping, scan your receipt to prove you bought the items.
- Cashback is credited to your account once the app confirms your purchase.
Some cashback apps even let you link your loyalty card from specific stores. Hamza G. Email Outreaching Expert at Outreaching.io, shares, “When you shop, the system tracks your purchase automatically, so you don’t have to upload a receipt. This method works especially well for groceries and household essentials, making it easy to save money on things you buy regularly.”
Activate Browser Extensions for Automatic Cashback
If you’ve ever forgotten to activate a cashback offer, you know how frustrating it is to miss out on savings. Browser extensions solve this problem by automatically alerting you whenever cashback is available. These extensions run in the background and notify you of deals as you browse, adds Martin Seeley, Senior Sleep Expert of Mattress Company.
Here’s how to make the most of browser extensions.
- Install a cashback browser extension that automatically tracks and activates cashback offers.
- While shopping online, the extension will pop up and notify you when cashback is available.
- Click “Activate Cashback” before checking out to ensure your purchase is tracked.
The biggest advantage of browser extensions is that they prevent you from missing cashback opportunities. Instead of having to visit separate websites to activate cashback, the extension tracks it for you. Steve Morris, Founder & CEO of NEWMEDIA.COM, advises, “Browser extension is a simple way to make sure you’re getting the most out of your online shopping experience.”
Take Advantage of Referral Bonuses and Sign-Up Rewards
Many cashback apps, websites, and credit card providers offer referral bonuses and sign-up rewards. These bonuses are one of the easiest ways to increase your cash back without making a purchase.
Here’s how you can take advantage of referral bonuses and sign-up rewards.
- Sign up for cashback platforms that offer a welcome bonus after you complete your first purchase.
- Refer friends and family to join cashback apps using your personal referral link.
- Earn extra cashback or rewards points when your referral signs up and makes a purchase.
Tim Jones, Founder of Zendash, says, “Referral bonuses can be quite generous — especially during promotional periods. By sharing your referral link with friends and family, you can earn cashback every time they join and make a purchase. Some platforms also give your friends a welcome bonus, making it a win-win for both of you.”
Redeem Cashback for Maximum Value
Once you’ve earned cashback, it’s important to know how to redeem it for maximum value. Some cashback platforms offer multiple redemption options, but they aren’t all equal in value.
Here’s how to get the most from your cashback redemptions.
- Choose cash payments or direct deposits as the preferred redemption option.
- Redeem cashback as a statement credit on your credit card balance.
- Avoid low-value options like redeeming cashback for small merchandise or lower-value gift cards.
- Look for bonus deals where you can get extra value when redeeming for certain gift cards.
Cashback platforms often let you cash out your rewards in different ways, such as PayPal deposits, bank transfers, or statement credits. According to Tiffany Parra, Owner of FirePitSurplus.com, “Direct deposits are usually the most flexible option since you can use the cash however you like.”
Some platforms also offer gift cards at a higher redemption value, so check if that option offers better value for your cashback.
Avoid Common Cashback Mistakes
If you’re trying to maximize cashback, it’s important to avoid common mistakes that reduce your total savings. “Small errors can add up and cost you money over time, so it’s good to be aware of potential issues,” explains Gerald Chan, Founder of CROagency.net.
Here are some mistakes to avoid when using cash back programs.
- Forgetting to activate cashback before making a purchase.
- Not using cashback browser extensions, which automatically track cashback.
- Missing quarterly cash back categories on credit cards that offer bonus cashback for certain categories like gas or groceries.
- Redeeming cashback for low-value gift cards or products instead of cash or statement credits.
- Letting cashback points or rewards expire by waiting too long to redeem them.
To avoid these mistakes, make a habit of checking for cashback offers before every purchase. Use browser extensions so you never miss an opportunity to activate cashback. Activate quarterly cash back bonuses on your credit card as soon as they become available.
Noam Friedman, CMO of Tradeit, shares, “Don’t wait too long to redeem cashback. Some platforms have expiration dates on rewards, so cash out when you reach the payout threshold.”
Wrap Up
Maximizing cashback and rewards is simpler than most people think. It’s about using smart methods to get more out of every purchase. By stacking cashback from credit cards, apps, and browser extensions, you can boost your savings with little effort.
Planning your purchases around special offers and using referral bonuses can add even more value.
But the key is to stay consistent and active. Activate cashback offers before shopping, track your points, and redeem your rewards before they expire. Over time, these small actions add up to big savings. With the right approach, you’ll turn everyday shopping into an easy way to save money.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
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