Does Cashback Have Risks?

[Suba]

The term cashback is often found on various platforms, be it online stores, digital wallets/ewallets, credit cards, crypto exchanges for first-time depositors, etc. Cashback is often used as a marketing strategy because it gives the impression to customers that their money will be returned.

Cashback is different from discounts, cashback is given after the transaction while discounts are given before the transaction. Cashback can be in the form of cash that will be transferred to the user's account, points/rewards, coupons/vouchers, etc.

Although cashback will provide advantages to customers, in my personal opinion, cashback also has several hidden risks/disadvantages for customers, such as: customers become impulsive buyers, hidden costs. What do you think?

 

[King Belieal]

The few platforms that give me cash back doesn't have any risk for me. What risks am I expecting from a 2 cents cashback?

 

[Springtime]

I basically use credit card to make payment because of the cashback. So far, I have not encountered any problem with that.

 

[Augusta]

Yes, cashback programs do have some risks. While they offer the potential for savings, there are also potential issues like tracking problems, disputes with cashback sites, and the possibility of fraud.