How do cashback sites work?

Cashback sites are a great online money saving concept made possible by the Internet. Online shops pay websites known as affiliate marketing sites a commission on each sale made. This is an efficient form of advertising since there is little wastage - they only pay out cash when they get the sale. They do this since it helps them promote their online stores to a wider audience since there are many affiliate sites and they often rank well in the search engines. You may save between 1 and 10% with some fixed deals, e.g. when you sign up for broadband from a supplier you may receive £10.

This BBC news item to Explain Cash back websites summarises the alternatives and principles well.

Typical cashback deal categories are for everyhing you can buy online include books, broadband, all types of online shopping, credit cards and other bank accounts, mobile phones and travel.

If you are an online retailer, you can see there are a range of cahsback rewards sites, so it is worth having a separate strategy for these, to ensure you are controlling your costs, lifetime value and using appropriate promotions on a seasonal basis.

UK Cashback rewards websites list / directory

• QuidCo - one of the largest selection of shops with over 1200. Also explains payment options in a reassuring way. Paypal option.
• Greasy Palm - one of the largest cash back sites - Cashback Rewards Shopping Directory
• Frugaller and Frugaller forums - commenter Sarah says "that both offer great up to date advice and cashback amounts. I thoroughly recommend them to any cash back and reward hunters".
• ebuyandsave.co.uk. Site visitor Andre says: "I use ebuyandsave.co.uk and highly recommend it. They have over 600+ stores and offers payments via cheque, BACS and paypal. Minimum payout is also low at GBP 15"
• Rpoints - nearly 2,000 retailers with good forums. Points can be redeemed for Amazon Vouchers as well as BACS and Paypal.
• eDeals Cashback Rewards Shopping Directory
• Trolley Cash directory - clearly shows your savings
• Nectar eStores - A good choice for the risk averse and those with a Nectar card. Here you earn points for shopping. Most of the main stores and a range of categories including Banking & Insurance,Books & Stationery,CDs, DVDs & Games, Computers & Software, DIY & Gardening,eBay,Electrical Goods, Fashion,Gifts & Treats,Health & Beauty,Home & Interiors,Home Office, Kids & Pets,Motoring,Telecommunications,Tickets, Events & Films,Travel & Outdoors
• Pigsback - a similar approach to Nectar in that points based. Doesn't explain how it works very well IMO. It tries to be friendly with a nice Flash presentation. It's different from most of the approaches here since the rewards you earn by shopping are then discounted against future purchases - you don't actually earn cash. It doesn't have the security issues though.

Cashback Charity sites

It's good to see money back websites for charity donations. These are some of the Charity donation sites:

• GiveorTake - a Charity cashback site
• Charity Checkout
• U Shop U Care
• Cashback rewards

How to compare cash back offers sites

Cashback websites vary on the basis of:

• Amount earned when joining - typically free or with a bounus of £3 to £5.
• Commission split between you and site
• Number of shops / range of product categories
• Payment methods - this is important - see below
• Minimum payout
• Level of marketing - check number of emails you will receive is controllable. Number of ads

What do I have to do to get cashback deals and offers

First, you have to register with your e-mail address, then choose method of payment according to your view on risk, for me a Paypal account is the best method. BACs payments into your bank are common. Some offer vouchers. NB.Make sure you can trust the site and don't give out your bank details unless you are sure - I'm not sure I would, so would prefer the Paypal or Nectar approach. Then you just need to remember to visit the cashback sites before you shop. Finally, remember that it takes time for the commission to be credited - it will take a while.

Your recommendations on cashback sites

Thanks for your comments on the best money back sites - below. I have incorporate the larger, better designed sites. Any more comments or experiences, on these sites please add. Note that I don't have live URLs on the site to avoid / reduce "comments spam" where site owners add (many) links to their own site.