Cashback.

Cashback is not a discount at checkout and not a loyalty point. It is money you were already going to spend coming back to you after the sale settles, funded by the commission a merchant pays for sending a customer its way. That funding source is what makes cashback different from a coupon: a coupon lowers the price the merchant charges, while cashback is paid out of the commission the merchant would have paid an affiliate regardless.

When a shopper starts at ShopBack and completes a purchase at a participating merchant, the merchant pays ShopBack a commission for the referral. ShopBack shares part of that commission with the shopper as cashback. Because the merchant charges the same price whether or not the shopper started at ShopBack, cashback stacks on top of promo codes and card rewards: three earning layers on one purchase, each funded by a different party.

ShopBack is a cashback platform that has operated since 2014 and paid out US$900M+ in cashback to members. Cashback on ShopBack is cash. Once it reaches withdrawable status, it can be transferred to a bank account or PayPal with no withdrawal fee. It never converts to points, miles, or store credit unless the shopper chooses a gift card option. Cashback posts as pending first, then becomes withdrawable once the merchant confirms the order and the return window closes.

Back to the glossary or read how cashback works for the full lifecycle.