How Cashback Websites Work: Earn Money on Your Everyday Shopping
Published 1st of March 2013·Updated 20 April 2026
Reviewed by: Reviewed for accuracy April 2026
Cashback websites pay you a percentage of what you spend whenever you click through to a retailer from their site and complete a purchase. The cashback comes from the retailer's marketing budget - the site earns a referral fee and shares part of it with you. You pay nothing to use the service, and you can earn anywhere from a few pence on a grocery order to over £100 on a financial product.
Short Summary
Cashback websites are free to join and cost you nothing extra. The money comes from retailers paying referral fees to the cashback site, which passes a share on to you.
The two largest UK cashback sites are TopCashback and Quidco. Between them they cover thousands of retailers and financial product providers. Comparing rates on both before a purchase is worth the extra minute it takes.
Cashback is not instant. Payments can take weeks or months to be confirmed, particularly for financial products. Do not rely on it to cover bills - treat it as a bonus that arrives when it arrives.
Always check that the cashback site is offering you genuinely good value on the underlying product. A product with cashback is only a good deal if the price itself is competitive.
How do cashback websites actually work?
When you click a link on a cashback website and go on to buy something, the retailer's tracking system records that you arrived via the cashback site. The retailer then pays the cashback site a commission - this is standard practice in affiliate marketing and costs the retailer money they would otherwise spend on advertising. The cashback site keeps part of this commission and credits the rest to your account.
You must start your shopping session from the cashback site each time for the referral to be tracked correctly. If you go directly to the retailer's website, or if you have previously visited the retailer's site in the same browser session, the tracking may not work. Clearing your browser cookies before clicking through from a cashback site reduces the risk of tracking failures.
How much can I earn from cashback sites?
Earnings vary significantly depending on what you buy. Financial products such as current accounts, credit cards, broadband deals, and insurance policies often pay the highest cashback - sometimes £50 to £150 per product. Everyday purchases like clothing and electrical goods typically return between 1 and 10 per cent. Grocery cashback through some retailers can be as low as 0.5 per cent.
Over a year, a household that runs all its major purchases and annual renewals through a cashback site can realistically earn £200 to £500. This depends on how much you spend online and whether you remember to use the site consistently.
| Category | Typical cashback rate |
|---|---|
| Bank accounts / credit cards | £50-£150 flat fee |
| Insurance policies | £20-£100 flat fee |
| Broadband / mobile deals | £30-£100 flat fee |
| Electrical goods | 3-8% |
| Clothing and fashion | 4-10% |
| Supermarket groceries | 0.5-2% |
| Travel and hotels | 2-6% |
Which are the best cashback websites in the UK?
TopCashback is the largest UK cashback site and does not charge a membership fee. It covers over 5,000 retailers and consistently offers some of the highest rates available. TopCashback adds a percentage bonus to every cashback payment on its free membership tier.
Quidco is the second largest and offers similarly wide coverage. It previously charged an annual membership fee but now operates a free tier alongside a premium paid option that claims to offer higher rates.
Topcashback and Quidco both have browser extensions that alert you when you visit a retailer that offers cashback, which removes the need to remember to start from their site each time.
Smaller sites such as Cashback Earners and Boom25 exist but have fewer retail partners. For most people, using TopCashback and Quidco together - comparing rates on both before any significant purchase - covers everything they need.
When do cashback payments arrive?
Cashback is confirmed once the retailer has verified your purchase, which can take anywhere from a few days to several months. Financial products and insurance policies often have the longest confirmation times because the retailer waits to ensure the product is not cancelled quickly. Once confirmed, most sites let you withdraw to your bank account, PayPal, or convert to gift vouchers.
Some sites offer a premium for accepting gift vouchers rather than cash - TopCashback sometimes offers vouchers worth 5 to 10 per cent more than the cash equivalent. This is worth considering if you regularly spend at a particular retailer.
What can go wrong with cashback?
Tracking failures are the most common problem. This happens when your browser does not correctly record that you arrived via the cashback site - typically because of ad blockers, cookie settings, or visiting the retailer's site directly before clicking the cashback link. Disabling your ad blocker for the cashback site and clearing cookies before clicking through reduces this risk significantly.
Not all purchases are eligible. Some products, promotions, and payment methods are excluded by retailers. Always check the terms of a specific cashback offer before relying on it. If cashback does not appear in your account within the expected timeframe, both TopCashback and Quidco have claims processes you can use to chase missing payments.
How do I get started with cashback websites?
Sign up to TopCashback and Quidco for free. Install their browser extensions so you get automatic alerts. Before any significant online purchase - a new appliance, insurance renewal, broadband switch, or holiday booking - check both sites to see which offers a higher rate. Click through from the site offering the better deal, complete your purchase, and wait for the cashback to be confirmed.
Signing up to email newsletters from both sites is also useful, as they regularly promote increased cashback rates on specific retailers for limited periods.
Frequently Asked Questions
Do I have to pay to join a cashback website?
No. Both TopCashback and Quidco offer free membership that gives you access to cashback from thousands of retailers. Neither site charges you for joining. Quidco offers a paid premium tier with claimed higher rates, but the free membership is sufficient for most users.
Is cashback taxable in the UK?
In most cases, no. HMRC treats cashback on purchases as a discount rather than income. However, if you earn very large amounts through referral schemes or by running a cashback-focused business, you should seek advice from an accountant. For everyday personal cashback, you do not need to declare it.
Why has my cashback not appeared in my account?
The most common reasons are a tracking failure (your browser did not correctly record the referral), an excluded product or payment method, or a long confirmation period. Check the expected confirmation time in your account. If the cashback is overdue, use the missing cashback claims process on the site.
Can I use cashback websites for financial products like insurance? Yes, and financial products often pay the highest cashback. Insurance, broadband, current accounts, and credit cards are among the most lucrative categories. Always ensure the underlying product is right for you before choosing it based on cashback alone.
Are cashback websites safe to use? TopCashback and Quidco are well-established, reputable UK businesses. You register with your email address and bank or PayPal details for withdrawals - standard information that is protected under UK data protection law. You should never need to provide payment card details to the cashback site itself.