BBB Tip: What to know before downloading a cashback app

If you are looking for new ways to save money on daily purchases, latest trend isn’t clipping coupons; it’s cash back apps. By using apps such as Rakuten (https://www.bbb.org/us/ca/san-francisco/profile/online-shopping/rakuten-1116-20543) and Ibotta (https://www.bbb.org/us/co/denver/profile/mobile-apps/ibotta-inc-1296-90153015), shoppers can earn rewards, such as cash or gift cards, after making a purchase. But before you sign up for one or more of these apps, be sure to do your research. How do Cash back Apps work? Some cash back companies build relationships with stores and brands and receive a commission for purchases made through their apps and extensions. Then, they pass on a portion of the commission to the consumer. Other companies offer payouts based on accumulated points, which consumers can earn uploading receipts, purchasing specific products, or scanning products in store.

Many such apps and browser extensions are legitimate, but, as always, exercise caution when any company promises big rewards for minimal effort.

To find and use cash back apps safely, BBB recommends the following tips: Get to know the company behind the app or browser extension. Before you install a cash back program on your phone or browser, find out more about the company that runs it. Look the company up on BBB.org to see its business rating and read consumer reviews and complaints. Choose an app that fits your shopping patterns. The way apps reward consumers can vary. Some offer coupons or price comparisons to help you find the best deal. Passive cash back apps (https://www.techentice.com/how-cashback-apps-work/) simply run in the background on your phone and track your purchase, giving you rebates when you shop at partner locations. Other apps reward you for shopping at specific retailers. Think about your shopping habits as you choose an app or extension to score the most savings.

Never pay a membership fee. You should never have to pay a fee to receive “free” money. Be wary of any app that claims to be free but asks you to pay a fee to receive a payout. Don’t agree – it could be a scam. Read the fine print. Most apps require you sign up for a free membership before you can receive rebates. Read the fine print before you commit to make sure you understand what personal information you will need to share, how the app works, and how it tallies your purchases and rewards. Protect your privacy. Keeping in mind that since many cash back apps ask you to connect your credit card, debit card or bank account to receive rebates and make purchases, keeping your data safe is critical. Before sharing your sensitive information with any company, BBB and FTC suggest reviewing the company’s privacy policy (https://www.consumer.ftc.gov/articles/0515-apps-help-you-shop-stores). Find out how payouts work. Nerd Wallet (https://www.nerdwallet.com/blog/finance/what-to-know-cash-back-shopping-sites/) reminds consumers that payout methods can vary from company to company. Do a little research to find out what the company’s payout frequency and threshold is, as well as their payout method and qualifications. Avoid unnecessary spending. Take advantage of good deals on the products you need but remember that making unnecessary purchases just because you’ll receive points or modest cash back bonuses will not save you money in the long run. In addition, when taking advantage of a product-specific deal, The Penny Hoarder (https://www.thepennyhoarder.com/make-money/quick-money/cash-back-sites/) advises, “Read the offer’s fine print. Make sure you’re purchasing the correct brand and quantity.” If you purchase the wrong size or flavor product for example, the offer may not be valid. For more information, go to BBB.org to look up online marketplace business profiles, file a complaint, or write a customer review. Visit BBB Scam Tracker (https://www.bbb.org/scamtracker) to research and report scams. Kelvin Collins is president & CEO of the Better Business Bureau serving the Fall Line Corridor, serving 77 counties in East Alabama, West Georgia, Southwest Georgia, Central Georgia, East Georgia and Western South Carolina. This tips column is provided through the local BBB and the International Association of Better Business Bureaus (IABBB). The Better Business Bureau sets standards for ethical business behavior, monitors compliance and helps consumers identify trustworthy businesses. Questions or complaints about a specific company or charity should be referred directly to the BBB at Phone: 1-800-763-4222, Web site: BBB.org or E-mail: info@centralgeorgia.bbb.org.

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