How does cashback work?

a family putting money in a piggy bank

Cashback sites explained. All you need to know to start making money online.

Many are jumping on the opportunity cashbacks have for saving on online purchases. To help you get started saving on the products that you love, we’ve compiled a list of common questions people have about cashback.

What is cashback?

First thing’s first. Cashbacks are a way for you to receive money back for qualifying purchases. These promotions are often limited-time offers that over time result in large savings. Most retailers have requirements that one must meet in order to be eligible for the reward. Be it a price threshold or a number of items that must be purchased, you must follow the instructions closely to obtain the cashback earnings. Even though you use the cashback website to receive your cashback, your product is sent directly from the store in which you made your purchase.

How do cashback sites work?

You don't need to be a philosopher to understand the technology behind a cashback site. Here are four simple steps for receiving a cashback reward:

  1. First, open an account on a cashback site. They’re often free to join!
  2. Then, browse the cashback site for deals from your favourite retailers.
  3. Once you find a deal you want to make use of, simply click on the link through the cashback website to be redirected to the retailer’s page and make your purchase. 
  4. Wait to receive your cashback. Give it a few days go through the approval process before you can get it deposited in either your bank account or PayPal. At moincoins, you've got a rare option to donate your cashback for a good purpose. 

Keep in mind, you will need to clear your cookies if you’ve already visited the website you plan on purchasing an item from prior to using a cashback deal. Cookies are bits of information stored in files on your computer after you visit a website. Since cashbacks use affiliate marketing links to identify your purchase and validate it through the cashback website, you will need to clear this information to be sure it recognises the correct link. You must do so to ensure you receive your money back, especially for websites you know you’ve visited.

How do I start earning cashback with moincoins?

Moincoins is cashback platform that highlights eco-friendly deals and sustainable brands. It works similarly to other cashback websites. Follow these steps to save and receive your first cashback reward already today:

  1. Log in to your moincoins account.
  2. Browse and click on the deal you like.
  3. Make a purchase as usual.
  4. Your cashback is pending until you receive and keep your order.
  5. Once your cashback is approved, withdraw it or donate.

How to get cashback with moincoins infographics

How much cash will I get back?

The amount in which you will get back depends largely upon the retailer and the promotion it has with the cashback website. Generally, a percentage is taken off the price of your purchase and is given back to you as a sort of commission. Percentages range from as little as 1% to up to 20% back or more. For instance, if you purchase an eligible computer for £1,000 with a cashback of 3%, you will receive £30 in cashback. Insurance and tech companies often use a set amount of money for their reward programs, such as £25 per package or policy.

Why is cashback a thing?

Like a discount or sale, cashback is a great opportunity for shops to make sales that they otherwise wouldn’t have had and for cashback sites to make a commission, while also dishing out a nice bonus for you. Using simple technology to create links for tracking your earnings, all three parties benefit from cashback. Additionally, cashback offers can often be combined with discount codes or other promo offers. Which means you can save even more!

Is cashback taxable?

Since the earnings you’ve acquired are considered rebates, they aren’t taxable. You may wish to talk with a lawyer concerning your cashback earnings, as Her Majesty's Revenue and Customs (HMRC) can be ambiguous about accepting cashback as non-taxable.

Are cashback sites safe?

Top cashback sites in the UK are secure and private, but there are things to keep in mind before you get started saving on your favourite items.

Disputes. Sometimes, disputes occur either between the shopper and the cashback website, or the cashback website and the retail store. This happens when something along the way prevents you from receiving your cashback earnings. Resolving a dispute can be an unforeseen and timely process.

Withdraw immediately. Always withdraw any earnings on your cashback account as soon as you receive them in the off chance that the website changes its policies.

Avoid fees. While popular cashback shops are free to join, less-known sites can have hidden signup fees, so be wary of registering with a new cashback website. Some websites also charge an annual fee for their premium plans, so make sure you don't get automatically signed up for one of those unless you plan on regular shopping through the links of this cashback site. To avoid any misunderstandings and to offer our users amazing cashback deals, we decided to make moincoins absolutely free of any charges.

Late or delayed rewards. Receiving earnings from cashback sites can take weeks or even fail to reach your account. Often the blame falls on cookies that haven’t been cleared. Other causes are when smaller retailers go out of business before the cashback site receives the money, or when there are errors with the affiliate links used to send the cashback from the retailer to the cashback sites. Contact the cashback site immediately if you do not receive your cashback reward after a few weeks have passed.

Which shops do cashback?

Most well-known cashback websites can have thousands of popular shops from which to choose, some of the most popular and affordable websites include Tesco, H&M, Expedia, Amazon, Virgin Media, Argos, and Boots. At moincoins besides those regular famous shops, you will also find many sustainable ones that offer organic and ethically produced items. Explore our eco category and buy your favourite green products with a cashback reward on top.

What are the best cashback websites?

Speaking of well-known cashback websites, what exactly are the best cashback websites? TopCashback, Quidco, 20Cogs, and OhMyDosh are a few of the largest cashback sites for UK shoppers. There are also many new, less-known cashbacks that offer great cashback rates. At moincoins, for instance, you not only get a good cashback deal but also a great chance to clear your karma whilst you shop.

Is cashback a discount?

No, cashback is a promotion that gives you a rebate for your purchases, while discounts are amounts taken off retail value prices. You won’t receive money back from a discount, though you might save from purchasing items that are discounted.

Why cashback instead of discount?

Shops offering cashback often have high percentages for saving on large purchases, making you save more than you would on discounts.

How to make the most of the cashback sites?

To make the most out of cashback sites, make sure you purchase items that you actually want, rather than buying them because of the cashback you will receive. Also, always compare prices on top cashback sites to make sure you’ve found the best deal, as different cashback sites can have better offers. If you’re looking to score the best deals on your everyday online purchases, cashback sites are certainly worth exploring.