How do cash back receipt apps work?

Cash-back receipt apps help you earn money or other rewards when you use a mobile app to scan your receipts. Many apps accept receipts from many retailers, including grocery stores, department stores, convenience stores and gas stations. In exchange for sharing your receipts with the app, you’ll earn rewards — typically in the form of points you can redeem for cash or gift cards.

Earning money through cash-back receipt apps has grown increasingly popular, influencing the shopping habits of many consumers. A survey of more than 2,000 Americans revealed that 82 percent said they would shop more frequently at stores they hadn’t visited in a while if they were alerted to a cash-back offer.

If you want to use this kind of app, you should know how to maximize your earnings without overspending just to get a deal.

How cash-back receipt apps work

While cash-back receipt apps are typically free for consumers, they generate money through their partnerships with retailers and brands. 

The apps receive money to promote specific products or stores. The apps share a portion of their commission with the consumer who uses the app to buy the advertised product or shop at a promoted store. These cash apps require receipts so the app can track purchases.

Apps may also make money from advertising within the app and from selling consumers’ shopping data to market research companies. 

How much you can make with cash-back receipt apps

Depending on the app you’re using, you’ll typically earn about one to three percent back on your purchases. While this might not seem like a lot, the money can add up over time.

One popular cash-back receipt app, Ibotta, reports their average user earns $256 a year, and one user reported that the app saved them almost $1,000 in 14 months. Some apps offer ways to earn even more. For example, you could earn a sign-up bonus (usually $5 or $10), win a sweepstakes drawing or make money from participating in a survey.

Pros and cons of receipt apps

Pros of receipt apps 

• User-friendly: Most apps are easy and quick to use. Simply open the app, create an account and allow the app access to your camera. Snap a photo of your receipt and submit it to the app for your reward.
• Earn with everyday shopping: You can earn cash back while running your regular errands. This includes grocery shopping, gas purchases and dining. 
• Multiple payout options: Most apps provide different ways to redeem your rewards, such as direct bank deposit, gift cards or PayPal transfers.
• Opportunities to maximize earnings: Some apps allow you to increase your cash back by offering coupons, referral bonuses or chances to play games for cash and prizes. 

Cons of receipt apps

• Data privacy concerns: Some cash-back receipt apps share or sell their users’ purchasing information to data brokers. If this is concerning, review your app’s consumer data policy for an opt-out provision.
• Emphasis on brand name products: Some apps offer their best rewards for name brands. Even with the discount, they can be pricier than the equivalent generic.
• High payout thresholds: If you want to claim your cash quickly, you might be disappointed. Some apps require you to meet a minimum payout threshold (often between $5 to $20) before you can cash out.
• Small rewards: The earnings potential for most apps is fairly low. Given the time you need to spend reviewing deals, scanning receipts and claiming offers, this may not be an acceptable trade-off. 

Most popular cash-back receipt apps 

There are quite a few cash-back apps on the market. Here’s a closer look at some of the most popular options.

Ibotta

With a score of 4.8 stars out of 5 from 1.8 million ratings, Ibotta is one of the top cash-back receipt apps. It offers rewards for grocery and retail purchases. You select offers from the app before shopping, then submit receipts after you complete your in-store purchase. 

You can link store loyalty cards to automatically earn cash back. Ibotta’s referral program also offers extra rewards for reaching certain milestones. 

Ibotta features various participating retailers and brands, with rewards redeemed to PayPal, bank accounts or gift cards. You must reach the $20 withdrawal threshold to redeem your cash.  

Fetch

Fetch stands out for its simplicity and broad receipt acceptance, including email receipts. You earn points by scanning receipts from any retailer, with bonus points for specific brands or products. Redeem your points for gift cards to popular retailers like Target, Amazon and Starbucks. 

The app accepts receipts up to 14 days old and doesn’t require pre-selecting offers. You can submit up to 35 receipts in a seven-day rolling period. The number of points you’ll need to redeem for gift cards varies depending on the retailer. You’ll typically need a minimum of 3,000 points to redeem most rewards. 

CoinOut

CoinOut offers a straightforward approach to earning cash back. Upload receipts from almost any retailer for any product purchase and earn Coins, which you can redeem for gift cards. CoinOut allows you to submit both paper and online order receipts. 

You must submit your receipt within 14 calendar days of the purchase date. Earn additional Coins by snapping photos of product barcodes when prompted by the app. 

Coins can be redeemed via Amazon gift cards, PayPal or Zelle. Compared to some cash-back apps, CoinOut has a low minimum threshold. You can receive an Amazon gift card once you’ve met the minimum $3 threshold.

Receipt Hog 

Receipt Hog accepts receipts from stores for both in-person and online shopping. You’ll upload your paper or digital receipts to earn coins. 

The number of coins you’ll earn per receipt depends on the total amount you spend. The larger the receipt total, the more coins you earn. Here’s how much each receipt is worth:

• Less than $10 equals 5 coins
• $10–$50 equals 10 coins
• $50–$100 equals 15 coins
• $100 or more equals 20 coins

To redeem your coins for cash via PayPal, Amazon or Visa, you’ll need the following number of coins:

• 1,000 coins equals $5
• 2,900 coins equals $15
• 4,300 coins equals $25
• 6,500 coins equals $40

You earn bonuses for referring friends to the app, playing games and completing surveys. While individual receipt rewards are small, the app’s broad acceptance and gamification elements make it a popular choice.

Checkout 51 

Checkout 51 is a cash-back receipt app designed to help you earn rewards on grocery and gas purchases. Cash back on gas is available at over 5,000 participating stations in the U.S.

You’ll receive new offers in the app each Thursday at 12:00 a.m. in your time zone. Select the offers you want and add them to your shopping list. Your offers then expire the following Wednesday at 11:59 p.m., so you’ll need to complete your shopping and upload your receipts before the expiration.

Many offers are not store-specific, meaning you can redeem them from any grocery store, drugstore or convenience store. You can cash out via PayPal, a mailed paper check or an electronic gift card once you accumulate $20 in rewards.

Other types of cash-back apps

Scanning receipts isn’t the only way you can earn cash back. These top apps offer you cash back without having to submit a receipt.

Spruce

Spruce, a mobile banking app built by H&R Block, features savings and budgeting features aimed at helping you manage your finances. It provides automatic cash-back rewards at over 10,000 participating retailers. 

“With Spruce, you can get cash back rewards for everyday purchases at select retailers — often at places you already visit, such as grocery stores, apparel shops, restaurants and more,” says Helen Robb, director of product management at Spruce. “You don’t need to opt in for your offers, and you can find offers near you just by looking in the app. Your rewards are deposited into your designated ‘Extra Savings’ account on Spruce and those deposits can earn 3.50% APY when you opt in. This means you have the added benefit of building savings without even trying.”

Upside

Upside lets you earn cash back when you buy gas, get groceries or eat out. Since its founding in 2015, the cash-back app has given consumers $550 million in cash back. 

You can expect to earn an average of 8 percent back at restaurants, 5 percent at grocery stores, 12 percent at convenience stores and 10 cents a gallon on gas. Frequent Upside users can expect to earn an average of $270 a year.

To use Upside, open the app to see what offers are available in your area. Upside will show you a map of all the retailers near you offering cash back. Claim the offers you like and make your purchase. Pay with the Upside app or a debit or credit card you’ve linked to your Upside Wallet. Upside allows you to cash out through PayPal, gift card or bank transfer.

Next steps

To maximize the money you earn with cash-back receipt apps, consider combining them with cash-back credit cards. You can earn an additional 1.5 percent to 6 percent from a cash-back credit card on top of what you’re getting from cash-back receipt apps. You might want to use all that extra money you’re getting back to pay down debt, save for a large purchase or add to your retirement account.