CHARLOTTE, N.C. — If you're looking for new ways to save money on daily purchases, the new trend isn't clipping coupons. It's cashback apps, like Rakuten and Ibotta.
These apps have really caught on, offering shoppers rewards like gift cards or cash after making purchases. You can earn points or cash-back savings for qualified deals. But before you sign up for one or more of these apps, experts say you should do your research.
"There are a number of players out there in this realm right now, and some of them have A-plus ratings with BBB," Tom Bartholomy with the Better Business Bureau said. "Some of them have F ratings. And once you read the reviews and complaints of those with F ratings, no matter how good a deal is or how much cash is offered, once you see what other people's experience has been, you'll see it ain't happening."
Bartholomy said there are several red flags consumers should look for, with the biggest being deals that seem too good to be true.
"You can get 50% cashback on this purchase from a particular retailer," Bartholomy said. "That's an attention-grabbing offer right there, and ones that a lot of people are going to dig in deeper to try and take advantage of."
Bartholomy said it's critical that users read the terms and conditions for any cashback app before downloading it.
"It can be eye-opening to read a privacy policy that basically says, 'yes, we have your information and we're going to sell it to whoever we possibly can,'" Bartholomy said. "Some of them literally say that. Is that who you want to do business with?"
Contact Ben Thompson at bthompson@wcnc.com and follow him on Facebook, Twitter and Instagram.
Tip to avoid becoming a victim of a scam
Emotional appeal
Any pitch that ratchets up your emotion will inhibit your rational judgment.Sense of urgency
You MUST act now, or else.Request for unorthodox payment
Gift cards, prepaid credit cards, wire transfers, etc.Explanations that don't ring true
If your new “landlord” can’t show you the inside of the house, that could be because they don’t own it.You won, now pay up
It’s not a prize if you have to pay for it. Taxes, fees, shipping, whatever.Too good to be true
That’s because it’s not true. Sorry, your long-lost relative didn’t die, leaving you millions. That car you bought online for a third of its Kelly Blue Book value doesn’t really exist. The son of a billionaire diamond broker didn’t “swipe right” on you and fall instantly in love. That work-at-home job paying you hundreds of dollars an hour for stuffing envelopes isn’t real.