What Stores Give Cashback and How Does It Work?

Cashback represents a financial benefit consumers can receive on their purchases, essentially acting as a refund or rebate on money spent. Understanding the various ways to obtain cashback allows individuals to maximize their purchasing power.

Where to Get Cashback in Person

Obtaining cashback directly at the point of sale is a common practice at many brick-and-mortar retail locations, particularly when using a debit card. This process typically involves a PIN-based transaction where a customer requests an additional amount of cash beyond their purchase total. The requested cash is then dispensed by the cashier from the register, effectively acting as a withdrawal from the customer’s linked bank account.

Many large grocery store chains offer this service. Retailers like Walmart, Kroger, and Target are well-known for providing in-store cashback options. Drugstores such as Walgreens and CVS also commonly facilitate cashback transactions.

The availability and specifics of in-person cashback often come with certain considerations, including transaction limits. Most stores impose a maximum amount of cash that can be requested per transaction, commonly ranging from $20 to $100, though some may allow up to $400. A minimum purchase requirement may also apply. While many stores offer this service without an additional fee, some may charge a small fee, usually around $0.50 to $3.00. This service is distinct from rewards programs, as it involves receiving physical cash directly from your bank account.

Where to Get Cashback Online and Through Apps

Cashback opportunities have expanded significantly beyond physical stores, with numerous online platforms and mobile applications now offering ways to earn money back on digital purchases. These digital methods operate differently from in-person transactions, often involving rebates or percentages back on spending. Cashback apps provide a popular avenue for consumers to earn rewards on everyday shopping, both online and in-store.

Applications such as Ibotta, Rakuten, and Fetch Rewards are prominent examples in this space. Ibotta allows users to earn cashback by linking loyalty cards, submitting receipts after shopping, or making purchases through the app directly. Rakuten, formerly known as Ebates, primarily functions as a shopping portal where users start their online shopping journey through the app or website to earn a percentage back on their purchases. Fetch Rewards focuses on scanning receipts from any store to earn points that can be redeemed for gift cards.

Beyond dedicated apps, many cashback shopping portals and browser extensions enable users to activate offers or shop through specific links. These platforms partner with a wide array of online retailers across various categories, including clothing, electronics, home goods, and travel sites. When a purchase is made through the portal or with the extension activated, the platform tracks the transaction and credits a percentage of the purchase amount back to the user.

The cashback earned through these digital methods is typically accumulated within the app or platform account. Users can then redeem their accumulated earnings through various convenient methods. Common redemption options include direct deposit to a bank account, transfers to a PayPal account, or conversion into gift cards for various retailers. This form of cashback is distinct from credit card rewards, as the rebate originates from the merchant or the cashback platform itself, rather than from a financial institution.

Cashback Through Credit and Debit Card Rewards

Cashback can also be earned directly through financial products, most commonly via credit cards, but sometimes with debit cards. General cashback credit cards offer a flat percentage back on all purchases, regardless of the spending category. Rates for these cards range from 1.5% to 2% on every dollar spent, providing a consistent return. This type of card simplifies the cashback process by applying the same reward rate across all eligible transactions.

Another popular type of credit card offers rotating category cashback, providing higher percentages in specific spending categories that change periodically. These categories might include gas, groceries, dining, or online shopping, and they offer elevated rates, such as 5% back, for a limited time each quarter. Consumers must activate these rotating categories to earn the higher rewards. Some cards may also offer tiered rewards, providing different cashback percentages for various fixed spending categories.

While less common than credit card programs, some debit cards also offer cashback incentives. These programs are tied to specific types of purchases or partner merchants, providing a small percentage back on qualifying transactions. The cashback earned through credit and debit cards is accrued as a balance with the card issuer. These rewards can be redeemed as a statement credit, which reduces the outstanding balance, or as a direct deposit into a linked bank account.

Some card programs may also allow conversion of cashback into points that can be redeemed for gift cards or travel. It is important to note that this form of cashback originates from the card issuer, not directly from the store where the purchase was made. Cardholders should consider potential annual fees, spending caps on bonus categories, or minimum redemption amounts that some card programs may impose.