BBB
If you are looking for new ways to save money on daily purchases, latest trend isn’t clipping coupons; it’s cashback apps. By using apps such as Rakuten and Ibotta (both BBB Accredited Businesses), shoppers can earn rewards, such as cash or gift cards, after making a purchase. But before you sign up for one or more of these apps, be sure to do your research.
How do cashback apps work?
Some cashback companies build relationships with stores and brands and receive a commission for purchases made through their apps and extensions. Then, they pass on a portion of the commission to the consumer. Other companies offer payouts based on accumulated points, which consumers can earn uploading receipts, purchasing specific products, or scanning products in store.
Many such apps and browser extensions are legitimate, but, as always, exercise caution when any company promises big rewards for minimal effort.
To find and use cashback apps safely, BBB recommends the following tips:
- Get to know the company behind the app or browser extension. Before
you install a cashback program on your phone or browser, find out more
about the company that runs it. Look the company up on BBB.org to see its business rating and read consumer reviews and complaints.
- Choose an app that fits your shopping patterns. The way apps reward consumers can vary. Some offer coupons or price comparisons to help you find the best deal. Passive cashback apps
simply run in the background on your phone and track your purchases,
giving you rebates when you shop at partner locations. Other apps reward
you for shopping at specific retailers. Think about your shopping
habits as you chose an app or extension to score the most savings.
- Never pay a membership fee. You should never have
to pay a fee to receive “free” money. Be wary of any app that claims to
be free but asks you to pay a fee to receive a payout. Don’t agree – it
could be a scam.
- Read the fine print. Most apps require you sign up
for a free membership before you can receive rebates. Read the fine
print before you commit to make sure you understand what personal
information you will need to share, how the app works, and how it
tallies your purchases and rewards.
- Protect your privacy. Keeping in mind that since
many cashback apps ask you to connect your credit card, debit card or
bank account to receive rebates and make purchases, keeping your data
safe is critical. Before sharing your sensitive information with any
company, FTC suggests reviewing the company’s privacy policy.
- Find out how payouts work. NerdWallet
reminds consumers that payout methods can vary from company to company.
Do a little research to find out what the company’s payout frequency
and threshold is, as well as their payout method and qualifications.
- Avoid unnecessary spending. Take advantage of good deals on the products you need but remember that making unnecessary purchases just because you’ll receive points or modest cashback bonuses will not save you money in the long run. In addition, when taking advantage of a product-specific deal, The Penny Hoarder advises, “Read the offer’s fine print. Make sure you’re purchasing the correct brand and quantity.” If you purchase the wrong size or flavor product, for example, the offer may not be valid.
For more infomation
Go to BBB.org to look up online marketplace business profiles, file a complaint, or write a customer review. Visit BBB Scam Tracker to research and report scams.
Read more about BBB Accreditation Standards and BBB Standards for Trust. Learn how to become a BBB Accredited Business.