The meaning of cashback is rather straightforward: getting money back in exchange for spending them. Despite the fact that it has been widely used across different industries, there are still many people who don’t know what a cashback is and how to use it properly. Below we are going to discuss everything you should remember when using this offer.
What is Cashback
Cashbacks are rewards that customers get after making a purchase or spending money in any other way. The amount comes in a form of a percentage of the sum spent on the purchase. This percentage significantly varies from one retailer to another and depends not only on the sum spent but also on the industry and timing.
Everything started in the 1990s when US card producers launched a 5% card cashback which concerned purchases in pharmacies and grocery stores. Today, most enterprises consider cashback a perfect promotion because there is no need to discount products and businesses can motivate buyers to remain loyal and spend more.
Cashback is a great opportunity to increase sales and reward loyal customers. However, users may also benefit from these offers and return a part of the money that they would have spent anyway.
Cashback in online casinos
It is difficult to find players who like to lose. That is why when you get some of the money back everything seems much brighter. Gambling cashback allows players to return a certain percentage of the money they have lost. Usually, the percentages vary from 1% to 10% depending on the casino, your loyalty scheme, and the sum you have lost.
For example, members of the VIP program get a higher cashback percentage when climbing the loyalty ladder. The percentage may also differ depending on the day or occasion. For example, on public holidays or your birthday. To find the most profitable offers, get familiar with the best cashback casino bonuses at CasinoHex and pick the one you like the most.
However, you should remember that casino cashback bonuses often come with limitations and requirements. For example, game types, bets, maximum sum, and so on. You can find cashback that is available only for slots or offers with a high percentage but with a low cap.
That is why when choosing an online casino, make sure that the cashback promotion covers the games you are interested in and has transparent rules and requirements.
Cashback and bank cards
You can also find cashback in all the major credit card companies. It is a percentage of the money you spend on the card and greatly depends on the programs and promotions you are using. For example, on Internet shopping portals and quarterly programs.
Usually, there is a maximum sum you can return on your purchases through reward programs and promotions. For instance, Discover It Cash Back lets users activate a 5% cashback at gas stations up to $1,500 every quarter.
Cashback can be obtained in several ways, including:
- Bank deposits. Such cashback is deposited on your checking account and allows cashing out the balance once reaching a minimum amount. It is important to read the terms and conditions in advance;
- Statement credits. The cashback amount can be returned to the credit card balance;
- Charitable donations. You can choose a charity organization and donate your cashback (or its part);
- Gift cards. Some companies offer cashback in a form of electronic certificates and gift cards from partnering retailers.
Cashback in sports betting
Sports betting is rather popular in all parts of the world. It engages hundreds of sports types and players can make money not depending on whether they are familiar with the game or not. However, such betting involves risks, and getting some money back in case of loss is a great benefit for players.
Unfortunately, not many bookmakers provide customers with a cashback but they are still worth searching for. When choosing one of such platforms, players will get a percentage of the losses back, even though this percentage will remain below 5%.
Cashback, as a promotion instrument
Market diversity motivates businesses to search for new ways to promote their goods and services, and to attract users. Cashback is one of them and continues to gain popularity not only among bank cardholders but also among online shoppers and gamblers.