We know the obvious benefits of shopping online.
- Prices are generally lower
- No sales taxes in many cases
- Easy to comparison shop
- Many websites offer free shipping or free shipping to a nearby store
- No need to hassle with crowds at the mall especially during the holiday season.
However there is another money saving benefit that we sometimes overlook. Some credit card companies like Discover Card offer pretty handsome cashback bonuses on many major online retailers. You have to first log in to their site shopdiscover.com and then choose the website you want to go to. The cashback bonuses range from 5% to 25% and that can be hefty chunk of cashback especially on big ticket purchases like electronics that many folks purchase online.
Your own bank which issued you a credit card may also be offering merchant deals. For e.g Bank of America offers cash back deals on various merchants. You select the deals you want and then when you use your card online or in the store, you get the cash back bonus.
So before making a purchase online, check to see if you can get an additional cash back from the credit card you are about to use. You may just get quite a bit of money coming back to you.