Ibotta Review – Earn Cash Back on Everyday Purchases
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I'll admit it: I have never been a coupon user. It seemed like too much trouble for such little savings, even when I read stories about those so good at finding deals they got their groceries practically for free. But today? Well, the rising cost of goods has me ready to dive in. I mean, I went to pick up a 12-pack of soda, and it was more than $7.50! All of the prices had been rising so slowly that I hadn't noticed until now. And now, I want to find ways to save.
That's how I've found Ibotta. It's not a coupon app. It's a cash-back app that gives me extra cash every time I shop, whether online or at a store. Here's my take on Ibotta.
In this article
What is Ibotta?
Ibotta was born when its founder, Bryan Leach, saw a passenger on a flight taking a photo of a receipt and uploading it for an expense report. It led him to wonder if every receipt on the phone could be connected to provide users cash back on every purchase. Leach's idea became a reality that has paid back 40 million users more than $1.2 billion since its founding in 2012. The concept is simple: Make every purchase rewarding.
Related: Best Cash Back Credit Cards to Put Extra Money in Your Wallet
How does Ibotta work?
Ibotta is a free cash-back rewards app that gives you real cash for purchases, whether online, in person, or by phone. Ibotta partners with more than 2,000 retailers and brands, from groceries to electronics and alcohol to clothing, meaning everyday purchases will earn cash rewards. It is similar to cash-back credit cards and travel rewards programs, but all in one place. You can earn cash back on airfare, hotels, dining out, meal delivery, rental cards, and more, and it doesn't matter which credit card or loyalty program you have.
There are two ways Ibotta works. The easiest is from your phone, but it is also available in the desktop version by downloading a browser extension for Chrome or Firefox. With this extension, you can do your online shopping how you normally would, and it will let you know when there is a cash-back offer. Shop your favorite stores - even Amazon - and Ibotta will let you know when you can save money and instantly connect your purchase to your account.
When shopping in-store, you will need to upload receipts for your cash back. To do this, add the offer to Your List before purchasing. Once you make the eligible purchase, you'll open the app's Redeem section, take a photo of your receipt, and upload it. The app may prompt you to scan your purchased stemmed bar code, but otherwise, that's it.
You can link your Ibotta app to PayPal, Venmo, Wells Fargo, American Express, Bank of America, or other bank accounts to withdraw earnings. You can only redeem for cash or gift cards once your account balance reaches at least $20. Funds are immediately transferred and received within 0 to 5 days, depending on the account type.
How much does Ibotta cost?
It is 100% free to use Ibotta. There are no hidden gimmicks or scams. Ibotta earns its money from the retail partners who pay them when you purchase. You won't pay any fees through Ibotta, including withdrawal fees.
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Ibotta features
2,000+ retailers
Unlike many savings programs that sound good but have limited partnerships, Ibotta is the leader and has more than 2,000 partners offering cash back. You'll find shops like Macy's, Petco, Target, Walmart, Ticketmaster, Booking.com, IHG Hotels, eBay, Gap, Warby Parker, L.L. Bean, Enterprise Rent a Car, Acme Markets, Quicken, Redbox... the list is extensive and covers every category of shopping.
Its online app similarly highlights special deals, cash-back offers, and more available by categories. Linking your loyalty accounts helps the app work better with the retailers you shop most.
Robust search
Finding retailers where you can save money is easy with the app, as you can search in-store, online, gift cards, and nearby. This means you can use it while traveling to find retailers you may not be as familiar with.
You can shop by category, with grocery stores offering the most deals. Other categories include:
- clothing
- health and beauty
- pharmacies
- specialty
- restaurants and food delivery
- gas and convenience stores
- travel
- home and auto
- coffee and tea shops
- kids and baby
- pet supply
- sports and outdoors
- subscriptions
- entertainment
- electronics
- toys and games
Bonuses
A category of the app provides feature bonuses and rebates that are taking place, including ones specifically targeted to you based on stores you have saved as favorites or shop frequently.
Cash back
Of course, the main feature of Ibotta is cash back. As you earn cash back from shopping, it will be saved on your app until you can redeem it. There are three ways to redeem your cash back.
- You can select stores where you can redeem it, using the cash back as payment for new purchases.
- You can also elect to use your cash back to purchase store gift cards, which you can use at your leisure or gift to someone else.
- You can withdraw your earnings. Once you have earned a minimum of $20, you can withdraw your funds from your Ibotta account and have them electronically transferred to your bank or financial app.
Pros and cons
Pros
- Extra money in your pocket. Because Ibotta is connected to the shops you already use, you can earn or save money on items you may already plan to buy every time you shop. Of course, if you use the app to make your grocery list, you can make sure your shopping trip is money-saving, whether you have your groceries delivered or stand at the checkout stand racking up your cash back.
- Free means free. Ibotta is a free app, and you can use it when you want. When enrolling, you can opt out of receiving notifications on cash-back offers and bonuses and use the app how you'd like. Of course, Ibotta users who go all in and get the alerts and pay attention to every Ibotta offer before shopping can really turn this into a money-making app.
Cons
- Not all retailers will have offers. Although there are 2,000 retail partners, sometimes it can be tough to find offers when you need or want them.
- If you don't use it, it's no longer free. If there's no activity in your account for six months, the app considers you inactive and will take $3.99 from your monthly balance until it hits $0. However, it never takes money from your bank, personal finance, or PayPal accounts. To avoid losing your cash back, be sure to use the app at least once every six months.
Ibotta vs competitors
Ibotta is not the only cash back app available. Here's how it stacks up to its competitors.
App | Welcome bonus | Referral bonus | Stores | Desktop extension | Minimum payout |
Ibotta | Yes, varies | Yes, varies | 2,000+ | Yes | $20 |
Rakuten | Yes, varies | Yes, varies | 3,500+ | Yes | $5.01 |
Fetch Rewards | Yes, varies | Yes, varies | N/A | Yes | 3,000 points ($3) |
Rakuten
Rakuten, formerly of Ebates, works similarly to Ibotta, but to earn cash back, you'll need to connect your app or desktop extension to your credit cards. This helps when you make in-store purchases, as you won't need to upload a receipt.
Fetch Rewards
Unlike Ibotta, the free Fetch Rewards app offers points instead of cash back. Earn enough points to redeem them for gift cards and other rewards. And unlike Ibotta, Fetch Rewards gives you points on every purchase you make. Every purchase. To use, you scan your receipt within two weeks of purchasing. Fetch Rewards then "fetches" your savings by scanning your purchases to get the savings and cash back you're eligible for. It eliminates the need to review offers because it fetches them for you: 1,000 points = $1.
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FAQs
How much can I save using Ibotta?
Savings vary, and you'll need to refer to the app to find deals. For example, when publishing this review, some of the retailers were offering cash back of up to 30%.
Is the Ibotta mobile app worth it?
Just as with any coupon and money-saving app, it's a game of nickels and dimes. But they add up. Once you reach $20 in savings, you can withdraw it as cash or a gift card.
The bottom line
As our pandemic-spurred recession and inflation drag out, the Ibotta app can save you money on everyday purchases, taking some of the "ouch" factor away, especially at the grocery store. You're buying these items anyway; you might as well earn some cash back while doing it.
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Writer
Lissa Poirot is an award-winning journalist and editor with a focus on finance, travel and health. Her work has appeared online and in print, and she has often been cited as a source on both. She currently resides in Pennsylvania.
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