What is Cashback & What Are the Different Types of Cashback?

Cashback It is one of the most popular reasons why many consumers like to shop using cashback apps. Depending on the apps, users get different types of cashback offers. Some apps offer flat percentage cashback, but others provide higher cashback calculated according to the purchase amount. Simply put, cashback is a way to earn back some percentage of the amount a consumer already spent on a product or service using an app. 

When it comes to cash back, there are tonnes of apps out there. Those looking for cashback must go ahead and select the best cashback app that fits their preference. So let’s find out more about cashback and its different types.

How Does Cashback Work?

When someone qualifies to receive a cashback on an app while shopping, So they get a percentage of their transaction amount back. It works as part of a deal between the app and the service provider. The retailer pays a percentage of the transaction amount back to the app for each purchase. But the app then shares a portion of its earnings with the customers. The cashback amount and percentage vary depending on the app being used and It serves as the one-stop solution where one can avail of exciting deals and the best cashback  in various shopping categories, each time they shop online. Here’s how a consumer may receive a cashback deal through a mobile app:

• Find a UPI QR Code 
•  by using the app Scan the code
• Enter the transaction amount and receive the promised cashback

Different Types of Cashbacks

Cashbacks are attractive incentives or rewards that apps use to encourage customers to make purchases with them more often. On the app and transaction, a consumer may avail of any of the following types of cashback:

Rate Dependance :

• Flat Cashback: It offers a flat cashback to the user irrespective of the expenditure. 
• Tiered Cashback: It depends on monthly or annual spending.
• Varying Cashback: It offers higher cashbacks on specific categories and lower on the others. 

Depending on the Source: 

• Card: Some banks and card providers provide specific cashback opportunities to loyal customers. For instance, when they collaborate with certain stores, they give cashback to their customers who use their cards to shop at the store. 

• App: Certain apps collaborate with their partner brands. When consumers pay for their purchase using the app, they receive cashback on specific products and services.
• Digital Wallet: A digital wallet has everything in one place. Users get cashback they are eligible for by paying through the wallet. 

Depending on Redemption:

• Bank Deposit: The users receive their cashback directly into their bank account.
• Credit On Statement: The cashback gets added to the app’s balance, so with which the consumer can use to make more purchases.
• Gift Card: The user receives a certain amount of cashback in a gift card. The gift card applies to specific stores or services only, and consumers may use it when they shop from that retailer.

Getting a cashback may tempt users to spend more than they usually would. Therefore, it is crucial to keep spending habits in check and earn the deserved benefits. Features to look for in the best cashback app include assured cashback on every transaction, so no caps and hidden terms, and notifications about offers and expiring cashbacks. Besides these, the app should have a user-friendly interface, and allowing users to transact and earn cashback seamlessly.

Cashback apps make online transactions easy at the fingertips while allowing users to get special benefits on each purchase. So browse through the cashback offers on your favourite app and get the best deals to save money in style.