Cashback system
A cashback system ( English cash back , literally "cash back" or "money back") is a bonus program that differs from classic bonus programs in that discount points can not only be used for further purchases. Often points are no longer used at all, but the cashback is shown directly as a monetary amount and credited to the customer account. Some cashback portals are still based on points, but these discount points can often be paid out in cash. The cashback systems, which display and pay out the cashback directly as a monetary amount, offer the user a high degree of flexibility. With a sum of money, the customer can see more easily how much savings the cashback system has brought per purchase.
functionality
Cashback systems are based on the commissions ( affiliate marketing ) that online shops pay to advertisers. A partner of a web shop advertises or recommends its products (for example in a blog article with a link to the product). As soon as a customer follows this advertising link and buys a product, the webshop pays the advertiser a proportionate, previously agreed commission. As advertisers, cashback systems keep part of this commission for self-financing and distribute the remaining amount to the respective end customer. Most cashback systems now distribute the earned cashback directly as money. However, some systems also offer a distribution in the form of discount points. These points can then be used for further purchases.
Withdrawal Terms
With cashback systems, the credit is credited to a virtual account. Most cashback systems pay the collected commissions from an amount between € 1 and € 20 to the bank or PayPal account. The amount of the cashback amount paid out to the customer depends on the business model of the cashback system and its contract with the respective partner shop.
Problems with collecting cashback
Problems often arise when these link forwardings (so-called tracking or affiliate links ) to the desired web shop are recorded. These disruptions can be caused, for example, by advertising filters, ad blockers or browser settings. In this case, some cashback systems provide a way to pursue this missed cashback. For this, the user usually has to provide proof of purchase (e.g. order confirmation via email).
Origin and development
Cashback systems came into being almost at the same time as affiliate marketing. They first came up in Great Britain, where there are now over 120 cashback portals on the Internet. They are serious competition for retailers there.
privacy
The customer enters their personal data using a registration form in the cashback system. With some cashback programs there is also limited anonymous use (until the time of payment). More details can be found in the respective data protection regulations of the cashback systems.
Web links
- Article at Focus.de - discount on every purchase
- World Online - Payback Card faces competition on the Internet
- Computerbild.de - Money back if you buy: Cashback bonus services in the test
- Stiftung Warentest - Cashback beats Payback