1. What Is Cash Back?

Cashback refers to two types of financial transactions which are related to Credit and debit cards. The cashback has gained popularity in the last two decades. It is a credit card benefit where a small percentage of the amount spent on each purchase is refunded to the cardholder.

In debit cards also receive cash when they make purchases which is generally a small amount above the item cost.

1.1 How Cash Back Works?

Each time you use the card. you earn a percentage of the amount that you spend on the item in the form of Cashback. For example, if a card allows you for a 2% cashback on $100 in a retail shop, then you can expect a Cashback of $2. This can be usually paid on a monthly basis or annual basis. 

Similarly, if you are purchasing an item through an affiliate website to earn cashback, the process looks as above. 

You will be given a link to the product which redirects you to the brand website or page. The affiliate receives an amount of cash as a token for bringing you to their Website. 

Once the order is processed and accepted the user will receive his cash back based on the percentage given on the Affiliate website.

1.2 Advantages and Disadvantages of Cash Back



Cash Back apps and websites offer discounts on products along with cashback rewards.

Cashback apps and websites always don't issue cashback on a timely basis.

Few credit cards offer a signup bonus as well with cashback.

Cashback credit cards have a higher APR (Annual Percentage Rate) than those without rewards.

Cash Back apps and websites are some of the easiest ways to earn cash rewards when shopping.

There may be a cap or limit on your cashback on how much cash you can earn back

2. What Is Discounting?

A discount is an upfront reduction of the price of an item. For example, if it is given a 15% discount on 1000 INR, it means you just have 850INR but not 1000 INR.

Discounting is more like the word “haha” that we use in messages. It helps in building rapport, but if overused it can lose its meaning. Similarly with discounts. It can undercut your business reputation majorly in the long run

2.1 How does Discounting Works?

Most discounts work on the principle of Urgency. As the discounts are available only for a particular time period, people want to buy it now or they miss it. This is what makes discounts more popular.

2.2 Advantages and Disadvantages Discounting.



Discounting is one of the fastest ways to drive sales. As the customer likes a good deal for their money, it is the best way to get your sales up.

Discounts sometimes can also invite wrong attention. It attracts customers who are simply driven by a bargain rather than appreciating what your company offers.

A worthy discount will help in attracting new customers to your business.

Discounts can also shift the focus of customers on price rather than quality or services. This leads to a cutthroat journey at achieving the cheapest price

Giving a proper discount will help you in clearing out the old stock that has been in the warehouse since last season.

Sometimes discounts will make customers think that the product lacks quality. they feel it is not worth the price, to begin with.

If you reward your customer with products and an additional discount , it will help business in building a handful of loyal customer relationships.

The most known disadvantage is the cut in profit or benefit that you've been making.

3. What Makes Cashback Better Than Discount?

Offering discounts on a regular basis or continuously will affect the sales margin of the company. As a result, it is not optimal anymore to provide offers. The more money the customers spend on your products, the more reward they get. So it is like a mutual benefit, you reward them for supporting your brand.

A brand can lose its credibility if it offers more discounts all the time. An effective way can be cashback rewards. By offering cashback and rewards a company gets loyal customers, but not the ones who are looking to save money. 

If you want to start earning cashback on every purchase from today, we recommend you a few top and amazing cashback websites where you can save a lot of money! They are Checkout 51, Ibotta, Rakuten, Swagbucks etc. 

4. How to build a successful Cashback business?

If you already run a cash-back business and don’t have a cashback app for your business, then you are really missing out on a lot of advantages and a lot of losses.

It is never too late to start to expand your business so contact one of the best mobile app developments in Hyderabad and get a free quote!

We provide all our clients with the most satisfying cashback apps that scaled up their business to the next level. And you can be the next!!

Thank you for your message. It has been sent.
There was an error trying to send your message. Please try again later.

Build Your application for  Business

Book Demo