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December 14, 2023

Cashback: How Does It Work?

Gradually appearing in France, cashback is beginning to make its way into the everyday lives of the French. Increasingly offered by various businesses, cashback has become a major factor for standing out from the competition. However, even though it is appreciated by a growing number of consumers, few people understand how it works. Therefore, an explanation is necessary regarding the latter. This will provide more clarity to this both mysterious and profitable system.

Cashback: The Definition to Understand Everything from A to Z

Cashback is a promotional technique aimed at reimbursing the customer a portion of the amount of a purchase they made. Hence the term "cashback," which literally means "money back." This reimbursement is based on a certain percentage. The percentage varies depending on the companies that offer a cashback system to their customers.

Different Types of Existing Cashback

Online Cashback

The most common type of cashback is the one found online, during our online purchases. There is a wide range of websites offering cashback, such as Poulpeo, Wildilo, iGraal, Joko, eBuyClub, etc. The principle is simple. When you create an account on one of these sites, they receive a commission on your online purchases and share it with you in a cashback fund. Once you have accumulated a certain amount, let's say €20, you can cash out your money.

Cashback from Bank Cards

Another type of cashback that is becoming more prevalent over time is offered by bank cards. Here, all purchases made with your card will be partially reimbursed and credited to your account. However, this reimbursement varies depending on the contractual conditions of the chosen entity. There are a variety of financial institutions offering cards with a cashback system. For example,, Vivid, Floa Bank, Boursorama, LCL, or Orange Bank.

Advantages of Cashback for Consumers

Earning Money with Your Regular Purchases

The major advantage of cashback is, above all, the partial reimbursement of our purchases. Indeed, being paid when grocery shopping provides a certain satisfaction. Moreover, over time, you manage to save money.

Cumulative with Promotional Offers

In addition to earning money, it is often possible to combine your cashback with discounts, gift vouchers, loyalty points, coupons, or promo codes. This proves to be a real opportunity to save money and thus, at the same time, balance your purchasing power.

A Referral System

To earn more money, a referral system is often put in place. For example, with the cashback site iGraal, you earn €3 per referred person and 10% of all their earnings. As for your referrals, they can benefit from a bonus when they sign up or make their first purchase. For instance, the site Poulpeo offers a welcome bonus of €5 for any registration using a referral link.

Disadvantages of Cashback for Consumers

Cashback, Yes, but Under Certain Conditions

Although cashback is very advantageous for us, it varies greatly depending on those who offer it. Some have the best cashback rates compared to their competitors, reaching up to 20% or more. But this rate is limited to a very small number of partner companies. Others will offer lower rates, not exceeding 5%. However, this rate will be applicable to your entire purchases, etc. Hence the importance of carefully examining the conditions of a cashback system.

Withdrawal Thresholds

On cashback sites, it is not possible to automatically retrieve the money you earn. Indeed, a certain threshold must be reached to withdraw your earnings. Only once this threshold is reached can you make withdrawals, usually through a bank transfer. This transfer will take several days to arrive. Therefore, this compels you to consume more in order to reach your threshold and withdraw your money.


Engaging in shopping sprees in hopes of earning even more money is clearly not a good idea. Especially for your credit card. And this is one of the biggest drawbacks of cashback. It urges us to make impulsive purchases. Consequently, the risk of consumer dependency is never far away. So, be cautious in managing your finances and not succumbing to temptation.

Advantages of Cashback for Businesses

Increased Sales and Customer Loyalty

Today, cashback has become a true commercial argument for attracting new customers. Especially in e-commerce. Many are more willing to spend their money on online retail sites if they offer a reimbursement rate. Why? Because it allows them to earn money and thus save money. A real boon given the current economic context. According to a study conducted in 2019 by the National Syndicate of Performance Marketing (SNMP), cashback can increase the average basket of an online store by between 10% and 20%. Cashback thus helps build customer loyalty while encouraging purchases.

Disadvantages of Cashback for Businesses

The fact that cashback is not deeply ingrained in the habits of the French represents the sole disadvantage for businesses. This is because this system can sometimes be viewed as dubious. Indeed, the offered deals can sometimes be so tempting that some end up being suspicious. This is the opposite of a business's marketing strategy, which aimed to attract customers rather than drive them away.

Cashback Sites or Apps?

The various disadvantages mentioned above mostly concern cashback websites. Therefore, it is preferable to use cashback apps, which are much more modern. Generally, these kinds of apps integrate cryptocurrency management. Equipped with a much more reliable payment system, they allow you to quickly collect your earnings and benefit from a larger number of partner stores. And one of the apps that best meets these criteria is Lyzi.

Lyzi App: An Innovative Cashback Solution

Available on Google Play and the Apple Store, Lyzi combines two contemporary sectors: cryptocurrencies and cashback. Aimed at making these accessible to the general public, it enables users to make purchases in cryptocurrencies at its partner stores. For each purchase made, users receive cashback ranging from 1% to 5%, which can be combined with various promotional offers. Transactions are fee-free, and the earnings made are instantly available.

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