Cashbacks are rewarded by credit card companies where an offered percentage amount spent by the customer is returned to them, back on their credit card. Many card companies have started giving cashback or points on the card holder’s account, to encourage the use of cards.

There is also a cashback reward program for the customers. These financial transactions can be divided into categories, transaction via credit card and transaction via debit card, and have been gaining popularity since. Whereas it usually benefits a credit cardholder or mostly being the case in India. Though it is mostly used for credit cards, cash back on debit cards is also seen where the user gets direct cash at the time of the purchase.

This scheme was started in the 1990s. This cashback can be used to pay credit card bills, in other purchases of items, or the customer sometimes even gets points that can be redeemed in good brands. This is a perk many credit card companies provide for better sales.

How does cashback work and How is it offered to the Customers

1. By cashback websites
Cashback websites are reward websites. These are the websites that give their users cashback offers and other beneficial rewards. These websites are affiliated with retailer websites and do their advertising and promotions. They are supposed to direct traffic, i.e. buyers to the retailer websites. Some of these websites may be free to join while some may require some membership fees. Usually, they can be joined free of cost

The users are supposed to access the retailer websites through the link provided by the cashback websites. When the user purchase products from the retailer and the payment are confirmed, the retailer gives a part of that transaction amount to the cashback website as commission. This money is then provided to the user by the cashback website in the form of cashback. This money can be transferred by the user in his or her bank account. But the user has to make sure that if the retailer website has been accessed while browsing previously, then the internet cookies have to clear before using the cashback website, or else a cashback offer may not take place.

Some cashback websites provide cashback within 4 to 6 weeks whereas others may take up to a few months to return cashback. Some cashback websites even keep a minimum cashback level for the user to be able to withdraw the funds. Smart buyers who want to save money while purchasing products should make sure to visit and register with cashback websites and browse through them to find top cashback offers to save money.

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2. By credit cards
Cashback is also offered by credit card issuers. Cashback through credit cards is the most commonly used method of getting/providing cashback. You should know how this is done. So, when the credit card company first issues the credit card to the user, there are two reward options available as part of the plan either of which has to be chosen by the user. One is a reward program that offers reward points to the cardholder when he or she makes a transaction through a credit card. Other is a cashback reward program in which the user is provided cashback on making payments through a credit card.

When the user having a cashback program as part of their credit card plan makes a payment using the credit card, the merchant has to pay part of the transaction amount as fees to the credit card company. This fee is known as a merchant fee. When the credit card company gets this merchant fee, they give a part of it to the user back as cashback. This is good for the credit card issuers as the cashback gives financial incentives to the customers and they then prefer to use their credit cards instead of cash or debit cards. Another way how it benefits them is that higher is the transaction amount, higher is the merchant fees collected by the credit card company, hence more financial profits for them.

What are the benefits of cashback offers for customers and Businesses
It is quite obvious that cashback is beneficial for customers, they get their money back which helps them save money even while spending, ideally what all customers would wish for.

But it is not only beneficial for the customers. It is also beneficial for the businesses offering cashback. Offering cashback gives customers financial incentives to use their goods and services. If the customers need cash but want to purchase something(s), then the idea of businesses offering cashback will attract them more than the idea of having to use a cash machine.

This gives the businesses to build positive impressions with the customers. This is because the offering of cashback has favored them in financial aspects and they have also been able to buy the products they want or the services they want to use, which is a great plus point. If everything goes well, customers will end up having good shopping experiences. And hence, customer loyalty will increase since the customers will tend to come back to the places offering them cashback benefits.

Where to find the best cashback offers online in India
To find the best cashback offers in India, go through the list of cashback websites given below. On these websites, you’ll find the best deals and amazing cashback, just what smart buyers need these days, the perfect ways to save money and get great products and services.

• CouponDunia
• CashKaro
• GoPaisa
• Pennyful
• TopCashback

These cashback websites offer special coupons, exciting discount offers, and cashback deals to users. They partner with thousands of e-commerce websites including famous platforms like Amazon, Flipkart, etc.