Stacking Rewards: Cashback, Card Linked Offers, Coupons, Points & Miles

In the world of savvy shopping, there's a strategy that can multiply your savings and rewards with every purchase: reward stacking. This approach combines multiple discount and reward methods to maximize the value you get from your spending. Let's dive into how you can become a reward-stacking expert!

What is Reward Stacking?

Reward stacking is the practice of using multiple reward programs or discount methods simultaneously on a single purchase. Instead of choosing between cashback, points, or coupons, you strategically layer them together to maximize your benefits.

The Five Pillars of Reward Stacking

1. Cashback Website Rewards (e.g Rakuten.com)

Cashback sites are incredibly rewarding, particularly for online shopping. Here’s how they work:

• Partnerships with Retailers: Cashback sites partner with online merchants (like Amazon, eBay, or Sephora) through affiliate programs.
• You Click a Link: When you click a link to a retailer from the cashback site, this allows the merchant and the cashback site to jointly track your purchases.
• You Make a Purchase
• Retailer Pays Commission: The retailer pays the cashback site a commission for referring the sale.
• Site Shares the Commission: The cashback site gives part of that commission back to the you as cashback.

2. Card Linked Offers (Save to Card Offers)

Card Linked Offers available in many banking apps such as American Express, PNC Bank, CashApp, MasterCard Traveller Rewards, Avios etc all have offers that are “save to card”. Most of these offers can easily be stacked with coupons or cashback site cashback.

Try stacking these in priority as they are usually very generous and if they align with a cashback website upsize - you're in for a win up to 30% or even 40% back!

3. Coupons and Promo Codes

Coupons provide direct discounts on your purchases. They can be:

• Store-specific coupons
• Manufacturer coupons
• Online promo codes
• Browser extension automated coupon finders

The beauty of coupons is that they reduce your initial purchase price, while still allowing you to earn rewards on the total pre-coupon amount in many cases.

4. Points Programs

Points programs allow you to accumulate credits that can be redeemed for various rewards:

• Store loyalty points
• Credit card points
• Coalition loyalty programs (spanning multiple retailers)

Points can often be more valuable than their cash equivalent when redeemed strategically, especially for travel or premium merchandise.

5. Miles and Travel Rewards

If your credit card doesn't provide you miles or points on all your purchases, you're missing out!

Make sure you have a credit card that provides a generous amount of points per purchase these could be linked to:

• Airline frequent flyer programs
• Hotel loyalty programs
• Another point system e.g American Express MR Points
• Your bank’s own points scheme

Effective Stacking Strategies

The Basic Stack

Let's look at a simple example:

1. Start with a rewards credit card (2% cashback)
2. Card Linked Offers (CLO) or “save to card” offers (15% cashback)
3. Click through a cashback portal (10% cashback)
4. Apply a 10% off coupon code (10% saved)
5. Earn store loyalty points on your purchase

On a $100 purchase, this could yield $2 credit card cashback, 15% card linked offer + 10% portal cashback + $10 immediate discount + store loyalty points. That's 37% in value before counting the loyalty points!

Advanced Techniques

Strategic Timing

Timing your purchases around promotions can enhance your stack:

• Shop during double cashback events on portals
• Wait for credit card bonus categories (5% back on specific categories)
• Take advantage of seasonal promotions and sales
• Keep monitoring your banking apps to see the Card Linked Offers they have available.

Gift Card Stacking

Gift cards add another layer to your stacking strategy:

• Purchase discounted gift cards (5-20% off face value)
• Earn rewards when buying those gift cards
• Use the gift cards for purchases while continuing to stack other rewards
• Caution - always check the Ts&Cs of your cashback offer to see if it can be stacked with a gift card payment.

Common Pitfalls to Avoid

While stacking rewards is powerful, there are some pitfalls to watch out for:

• Spending more to earn rewards: The primary goal should always be to purchase what you need at the best price, not to maximize rewards.
• Ignoring terms and conditions: Some programs explicitly prohibit stacking or using certain combinations.
• Overlooking annual fees: Make sure any premium cards with annual fees provide enough value to justify their cost.
• Carrying balances: Interest charges will quickly erase any rewards you earn. Always pay off credit cards in full.

Conclusion

Reward stacking is a powerful strategy that allows you to multiply the benefits from every purchase. While it requires some organization and knowledge, the returns can be substantial. Start with simple stacks and gradually incorporate more advanced techniques as you become comfortable with the process.

Over time, these small optimizations can add up to thousands in savings and rewards.

Happy stacking!