Recently reader John W tipped me off about a new cash back site named TopCashBack. He had found that TopCashBack offered the best cash back rates for buying and selling gift cards through sites like PlasticJungle and Cardpool. TopCashBack’s rates were so much better than the other cash back sites that I had to redo my entire “cheat sheet” showing how to buy and sell gift cards (you can find the cheat sheet here, or under the “Resources” tab on my site).
How do they do it?
TopCashBack has affiliate relationships with merchants (through affiliate networks) and so they are paid whenever someone makes a purchase after clicking through their site. Where they are different from other cash back sites (much different!) is that they give 100% of that money back to the consumer!
Impossible, right? I mean, they need to somehow cover their employee salaries, office space, and hosting costs. Right? I checked a couple of merchants who make their affiliate percentages public and found it to be true: In those cases, the amount the merchant pays their affiliates is the same rate given by TopCashBack. So, how do they do it?
“My prices are so cheap, I’m losing money on every deal, but I’ll make it up in volume”
-Car salesman Madman Muntz’s advertising pitch
Yes, they make it up in volume. Really. On Monday, I had a great chat with TopCashBack’s Natasha-Rachel Smith. Natasha is the head of communications and public relations for TopCashBack overall, and (as if that wasn’t enough) she is the head-honcho in charge of TopCashBack’s US site. You see, TopCashBack.co.uk started in the UK and has become quite popular there. Only recently (about 6 months ago) have they ventured across the sea to try to take over the colonies.
What I learned from Natasha is that TopCashBack earns money almost entirely from ads on its site. Each ad is accompanied by a disclaimer saying “Sponsored advert – Zero cashback.” After several years of losing money with this approach in the UK, they are now the top cash back site in the UK. They now get enough traffic on their site to make their revenue model work. Their hope and intent is to do the same in the US.
Testing the Service
I haven’t used TopCashBack long enough to actually deposit money in my bank account, but I do have over $60 pending. I have about $16 from buying gift cards at Cardpool, $14 from selling gift cards to Plastic Jungle, and $30 from “tell a friend” referrals. I also have 15 cents pending because I clicked through to a site called HotelsCombined and I searched for a hotel. I didn’t make a reservation or buy anything, I just searched.
Impressively, most of my pending transactions appeared the next day after I clicked through TopCashBack. Last night I made purchases at Staples.com and Drugstore.com. Those haven’t shown up yet, but hopefully they will soon. The Drugstore.com purchase was made using gift card credit I had left over from previous experiments. In those experiments I found that portals did not give cash back or points for such purchases. It will be interesting to see if the same happens here.
I’m Selling Out
TopCashBack isn’t paying me in any direct way to write this post, but they are paying me: Just like anyone else who signs up for TopCashBack, I get money back when I shop and I get $5 each time I successfully refer a friend. And, I now know the boss: I asked Natasha if she could add Staples to the site, and the very next day it appeared! Even better, after reading comments on prior Frequent Miler posts, she proactively began an effort to find out which merchants give cash back for gift card purchases! As that information trickles in, the site will be updated to make payout amounts more clear. This has huge implications for future gift card churning schemes! So, yeah, I’m selling out. TopCashBack has provided a path to help my readers save more money, and a way to make Frequent Miler schemes more lucrative. So, yes, I’m happy to help them in return by crowing about their service.
So, what do you think? Am I right to “sell out” here? Do you think that it’s in our best interest to help TopCashBack succeed in the US? If you’ve used TopCashBack, how has the experience been?
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I just bought my first gift card at Cardpool and referred a friend. Does anyone know how that works? Does my friend need to buy a gift card? Do they send you a coupon code to your email?
Matthew: my experience with TCB varies by merchant. PlasticJungle paid quickly every time. Marriott paid quickly. Some others go for many months without moving from confirmed to payable. Worst is Vision Direct. I have a purchase from July 2012 that still isn’t payable.
So nearly a year after your post, how have things worked out with your TCB transactions? Curious to know how long it takes for a TCB portal purchase to convert into cash in your bank account.
Many thanks! That’s great that they’re offering 12%, however I did a compare by using cashbackholic.com and evreward.com for GNC, it shows ShopDiscover pays the highest cashback @ 15%… not sure why TopCashBack states they “give 100% of that money back to the consumer!” Unless I am missing something here?
Lou: Each cash back site has different affiliate agreements with merchants. Discover must have worked out a better deal.
Thanks FM, I do a lot of shopping at GNC.COM and would love to have it on topcashback.
Lou: From Natasha at TopCashBack: GNC’s now live at 12%: http://www.topcashback.com/gnc/
There’s also a coupon code to save 20% off $100+ orders or 15% off $85+ orders
Lou: I’ll check with Natasha if she doesn’t answer herself.
If you or Natasha is reading this, can GNC.COM be added to topcashback? Thanks!
I have read on this blog that TopCashBack will only give 4% for gift cards sold to Cardpool up to 1,000 in sales (so $40 cash back). Is this certain? I can’t find this info on the topcashback site or cardpool site.
niko: On TopCashBack, you have to click the “more” link and then you’ll see this:
Andyandy: I have cash back showing as pending from selling mail in cards to plastic jungle. No problem
Hmm. I’m currently working a deal selling Exxon cards to Plasticjungle. I note that Topcashback’s referral T&C for PJ says the sales commission is earned on sales “completed immediately and wholly online.” That sounds like sales where the card must be mailed in (Exxon for example) don’t qualify. Anyone have experience with that?
So just tonight, under giftcards.com, it says “Please click through and purchase as normal, but note that we are unable to offer cashback discounts on any purchases made at GiftCards.com.” Kind of confusing, but looks like NO cashback anymore at giftcards.com??! What about the other GC sites? Has everything changed? I just signed up for this site and really like the idea.
I was about to suggest/ask for a couple of merchants to be added, like Travelzoo and Google Offers- thought you could ask your company contact. But now I wonder what is going on?
guest: Natasha actually did give me a heads-up about this. They work through affiliate networks and every now and then the terms change temporarily or permanently. TopCashBack will update their site once new terms for giftcards.com are made clear. In the meantime, PlasticJungle and Cardpool are still great options for getting cash back for gift cards.
@Greg The Frequent Miler
I could not receive the authentication email.Not even in spam folder. Not sure why.
You can send me an invite. Be glad to give you 5 bux.
Carl: Thanks! Just use any link in the post, or click here: http://www.topcashback.com/ref/member341454331
Joe: That’s very strange. Maybe check your Spam folder?
DGuy: Sure, I’ll ask her about LivingSocial.
Peter S: Nice find with the master card marketplace.
Can’t seem to get my verification email. I used your REF code, but it just won’t send me an email. I retried . . .
@DGuy Livingsocail gives points/cash back on marketplace.mastercard.com