How cashback platforms work

What is a cashback service?

A cashback service is an online platform that is a partner of an online store. Its mission is to attract customers to the store. The latter pays the partner a commission for this, a part of which is shared with the buyer. Ultimately, everyone benefits:

– The store earns money by selling goods, gets loyal customers, and saves on advertising;

– the cashback service receives payment from the store, part of which it transfers to the customer, and part of which it keeps as profit;

– the customer returns part of the amount spent in cash and saves on purchases.

There are about a dozen cashback services in Ukraine. We will tell you how to use them on the example of one of the most popular ones – LetyShops.

How it works

Letyshops cooperates with 1823 cashback stores. Among them are such popular electronics sellers as Rozetka, Comfy, and Eldorado, the Chinese online platform AliExpress, and many others.

The working algorithm of the cashback service is as follows:

1. The user registers on the site.
2. Select the store he needs from the list of partners and go to it via the link.
3. Then he simply makes a purchase there as a regular buyer.
4. After its payment, a cashback in the form of a percentage of the amount paid for the product will be credited to his account on the service website. Depending on the store, you can get back from 1% to 10% of what you spent.
5. If the product (and, accordingly, the payment for it) is returned, the previously accrued cashback is also returned. When registering on the service website, every new client is granted Premium status for 7 days. This means that during the week, the cashback rate will be increased by 30% compared to normal.

This is how the service encourages new customers to make more purchases:

Before starting the service, it offers to install a browser extension that allows you to activate cashback when you enter the online store’s website directly, rather than through the service’s website.

In addition, it has a useful function for monitoring prices in Chinese stores. You can check how the price of the product you have chosen has changed over the past few months and assess how fair the discounts offered by the seller are.

The extension is available for Google Chrome, Safari, Firefox, and Opera.

What else can you earn?

Referral program

The service has a referral program that allows you to earn additional income in two ways:

Create a special referral link to a product and receive cashback for purchases made by other people using it. Bloggers who review products, for example, make money on such links. They place them under their texts or videos where they talk about the product and encourage readers or viewers to buy a similar item “via the link below”.

Invite your friends to the service. To do this, copy and send them a referral link. The service pays 15% of the cashback earned by each user who registers through this link.

Double cashback

By using credit or debit cards that charge cashback for online payments, you can receive double rewards: both from the cashback service and the bank. For example, the Big Five or Weekend Card from Tascombank. The first one gives 1% cashback for all online purchases, while the second one gives 2% (although the card itself is paid).

Cashback payout

Cashback from Letyshops can be received in two ways: by paying out to a bank card or by replenishing a mobile phone account.

The payment request is processed within 1-3 business days.