What is Cash Back?
(More importantly, how can Cash Back benefit me?)
This website focuses on the Cash Back that is generated as a bonus for spending on goods and services. When you spend money on goods and services a company will give you back a certain percentage in the form of money. This is very similar to retail loyalty rewards which give you various types of points.
I've found that most loyalty rewards are worth the same or less than their value in money as compared to Cash Back systems and have limitations. For instance, one grocery store that I frequent offers reward points for every dollar spent if you pay using their branded Mastercard. They will give you 10 points for each $1 you spend in their stores (and everywhere else). 10 points sounds like a good amount until you realize that 10 points are equal to $0.01 (1 cent). Thus, your reward works out to 1%. It's a fair reward, but the points are only usable in their stores. In comparison, I get 4% Cash Back from my own credit card and I can spend that cash however I would like. Retail reward point systems are intended to increase loyalty to a certain store, company or brand. As a result, limitations are imposed as to how, when, where the points can be redeemed. Cash is cash and can be spent anywhere, anytime.
I don't like limitations, but I do like getting Cash Back for my purchases. The best ways that I've found to maximize receiving Cash Back are through online spending and using credit cards. Making purchases with a debit card, physical currency (cash) and cheques doesn't get you anything extra and I use those methods as a last resort. The way I make purchases these days provides me with at least one Cash Back bonus and sometimes two PER transaction! Yes, I double dip and get double Cash Back as often as I can.
If you're going to spend the money anyway, you might as well get some extra Cash Back.