|This article does not cite any references or sources. (October 2011)|
When a customer makes a purchase online, instead of visiting the retailer directly, they may choose to follow a link from a cashback website to generate a monetary reward when buying products or services. The cashback website receives a commission from the retailer that, after the purchase is confirmed, is shared with the customer who made the purchase.
Payment is generally made to the user in the form of bank transfers, gift vouchers, online sites such as PayPal, or bank checks. Some cashback websites place a threshold on a customer's account such that a user may need to make several transactions in order to be able to receive a reward.
Many cashback sites offer users a reward for referring others to the site. Some cashback sites also offer discussion forums, paid online surveys, daily deals, and other rewards to increase traffic and maintain customer loyalty.
Browser extensions are often utilized in to remind users that they can receive cashback from online purchases. A Browser extension interacts with backend API of the Cashback website, and displays notifications when user visits e-commerce website telling that this website is eligible for cashback.