Ibotta Review: $250 a Year for Grocery Receipts?

Ibotta is a money-making app that promises cash back rewards for shopping in-store and online. But is the app for real, or is it too good to be true?

Having been an Ibotta user since 2017 and earned hundreds of dollars in cash back, I can personally attest to the legitimacy of this app.

That said, it’s not all sunshine and rainbows. There are several things I dislike about Ibotta as well.

In this honest Ibotta review, I’ll cover:

• How Ibotta works
• How you can earn money
• What your potential earnings could be
• A few pros and cons
• Some Ibotta alternatives to consider

Let’s dive right in!

What is Ibotta?

Founded in 2012, Ibotta partners with over 2,400 leading brands and popular retailers, including:

• Walmart
• Target
• Safeway
• CVS
• Costco
• Whole Foods
• eBay
• and more

In doing so, they pay you cash back on your everyday purchases.

To date, the company has paid out over $1.8 billion in cash back rewards to its 50+ million registered users! According to the Ibotta website, the average active user earns over $250 a year.

Each brand and/or retailer sets their own offer, which can include a flat cash back dollar amount (e.g. $1 cash back for purchasing a specific product) or a percentage of your total spend. 

How Does Ibotta Work?

Ibotta rewards users for regular shopping, both online and in-store. You can earn cash back on:

• groceries
• clothing
• home goods
• gift cards
• travel
• and more

Here’s how it works:

In-Store Purchases

1. Browse offers: Before you shop, check the Ibotta app for cashback offers on various products at supported stores. For instance, today there’s an offer for $1.50 cash back on Goldbond lotion at CVS:

2. Add/activate the offer: Click the + symbol next to the product image to activate the offer. You can add as many offers as you’d like.
3. Complete your purchase: Buy the eligible products as you normally would.
4. Unlock cash back: Take a picture of your receipt and upload it in the Ibotta app. (Some stores let you link your loyalty card to automatically track purchases.)
5. Get paid: Once verified, cashback gets added to your Ibotta account.

Important note: You can also add offers after you’ve already completed your shopping. That way you’re truly not buying anything you weren’t already going to purchase.

Online Purchases:

You can also use Ibotta when you shop at top online retailers, most of which offer percentage of your total order, similar to Rakuten.

1. Find offers: Search the list of online retailers, either by category or name.
2. Activate: Link to the partner website via the Ibotta app or site to start your shopping session.
3. Earn cash back: Shop and checkout as you normally would.
4. Get paid: Once verified, cash back gets added to your Ibotta account.

What is the Minimum to Cash Out on Ibotta?

Once your account balance reaches $20, you can withdraw your earnings to:

• PayPal
• Your bank account
• A gift card of your choice

Is Ibotta Legit?

Yes! As mentioned, I’ve been an Ibotta user for about seven years and have earned over $500 in that time.

The keys to success with Ibotta are diligence and patience. It’s definitely not a get-rich-quick scheme. Offers can be as low as $0.10, so it can take some time to build up a balance.

That said, it’s basically like getting free money just to shop like you normally would, so it’s definitely worth it.

Tips for Making Money with Ibotta

Signing up for Ibotta is quick, easy, and free. 

New members can earn a welcome bonus of up to $20, depending on the offer at the time.

There are a number of other ways you maximize the money you earn with Ibotta. Here’s what I recommend:

Check the App Before You Shop

My first piece of advice is to get into the habit of checking the Ibotta app any time you plan on making a purchase to see if there are any incentives you can take advantage of.

When shopping in-store, remember to add the offer(s) before you shop. Otherwise, you could end up missing out.

Get Notified of Cash Back Offers

Install the Ibotta browser plugin, so any time you visit a participating retailer’s website, a notification will automatically pop up letting you know there’s an active cash back offer. You can then activate your shopping session with one simple click.

Take Advantage of Bonuses

Ibotta offers a number of bonuses which can help boost your earnings. Some bonuses are tied to challenges, such as claiming a certain number of offers in a specified timeframe.

Others are brand-related. For example, you might earn a small amount for signing up for a brand’s email.

Bonuses are time-sensitive and change frequently, so check in often to see what’s available that you might be able to take advantage of.

Use Any Item Offers

One cool thing about Ibotta is that they often offer cash back for “any item” products. For instance, you may be able to earn $0.25 cash back on a gallon of milk or a dozen eggs, regardless of brand.

These offers are easy to find, as they have their own separate category.

Get Creative

Another cool feature of Ibotta is the ability to purchase gift cards and receive a percentage of the total back.

Keep in mind, the gift cards are digital, so it can be a little challenging for gift-giving, but I like to use this feature when I’m shopping or dining out.

For example, a few weeks ago I was eating dinner at Texas Roadhouse. At the time, Ibotta was offering 5% cash back on gift cards. I simply purchased a gift card for the full amount of the check plus the tip and used that to pay. 

Gift cards are available for retailers, restaurants, and services, like Lyft and Instacart.

Shop During “Ibotta Days” and Other Special Events

Ibotta runs various specials throughout the year.

Their biggest is Ibotta Days, a multi-day, semi-annual event during which time participating brands and retailers offer much higher cash back amounts.

Shopping during this and other events can help you boost your earnings.

Link Your Rewards Accounts

Some retailers, like Target and CVS, allow users to link their rewards cards for an easier, more seamless transaction.

You’ll still need to add/activate offers, but as long as you use your rewards card at checkout, you won’t need to upload your receipt.

Pay Attention to the Terms

One important thing to note: most offers through Ibotta have certain terms and exclusions.

For instance, you may need to purchase a certain size or quantity of a product in order for it to qualify. Or there may be a limit to how many you can purchase and/or redeem.

This information can be found by simply clicking on the offer to open up its Details page.

Sign Up for Emails

Occasionally, retailers will offer higher-than-normal cash back incentives.

By signing up for email notifications, you can be alerted whenever there are any new or limited-time cash back incentives. You’ll also receive advanced notice for new bonus offers and special events.

Be a Savvy Shopper

There is a section of the Ibotta website that features the lates in “Hot Deals.” Check this section frequently to see what fresh new offers are up for grabs. 

Refer Friends

If you know of any friends, family members, or colleagues who might also be interested in using Ibotta, you can earn a cash bonus for each qualifying referral.

Simply invite your friend by text or email (this can be done with one click from the app), and once they sign up and submit their first receipt, you’ll get paid.

At the time of this publication, the referral bonus is $7 per qualified referral.

(If you’re finding this article helpful, make sure to use our referral code fbqcjps when you sign up.)

How Much Can You Earn with Ibotta?

Power users can earn $250 or more per year. Even as a casual but consistent user, I’ve earned nearly $100 a year in free cash back.

The amount you can make with Ibotta will ultimately depend on:

• How often you use the app
• How much you spend at participating retailers
• What types of incentives those retailers are offering
• Whether you qualify for bonuses

How Does Ibotta Make Money?

Ibotta makes money through affiliate commissions and advertising services. 

Participating retailers compensate Ibotta for incentivizing customers to purchase their products or shop on their sites. Ibotta then passes along a portion of these earnings to their users in the form of cash back.

Ibotta Pros & Cons

Pros

• Free to Use: Ibotta is free to join and use.
• User-Friendly: The Ibotta app is pretty easy to navigate, and activating/adding offers takes just one click.
• Variety of Offers: Users can shop thousands of participating brands and retailers, covering everything from groceries and clothing to travel, digital services, gift cards, and more.
• Decent Incentive Amounts:  The average Ibotta user earns $256 a year in cash back.
• Online and In-Store Options: Users can take advantage of cash back offers for both in-store as well as online purchases, which means more ways to earn.
• Bonuses: There are plenty of ways to stack and level-up your cash back through various bonuses and challenges.
• Referral Program: Users can earn referral payments for every qualified new user they refer.
• Flexible Payment Options: Cash back balances can be paid out via PayPal, direct deposit to your bank account, or converted to gift cards.

Cons

• Payout Minimum: Ibotta users can’t cash out until their earnings until the balance reaches at least $20. This can be frustrating if you’re just under the threshold and there are no suitable offers.
• Activation is Required: In order to earn cash back, users must remember to add products for in-store shopping and/or activate a session for online shopping.
• Receipt Upload Can be Clunky: For longer receipts, you may need to upload multiple snapshots to create one full image, which can get tricky. It can also take multiple tries to capture a clear and usable image. I recommend holding onto your receipt(s) until after the offers have been approved and your account is credited.
• Strict Terms and Conditions: Some of the terms for Ibotta offers can be restrictive. For instance, you may need to purchase a specific size or in a certain quantity. If you’re not careful to verify and meet these conditions, your purchase may not qualify.
• Maintenance/Inactivity Fees: If you don’t use your Ibotta account for 180 days, it’s considered “inactive” and Ibotta will deduct $3.99 from your earnings for every 30 days that your account remains inactive. You can avoid this by claiming at least one offer every rolling 180-day period, but it can be a bummer if you forget.

Is Ibotta Worth It?

While you won’t earn enough to quit your day job, Ibotta is certainly worth installing and using.

It’s free to use, and you basically make money doing your everyday shopping. Can’t go wrong with that!

Ibotta Alternatives

There are a few other apps and services that are similar to Ibotta, but none of them are exactly alike.

The closest ones include:

Fetch Rewards

The Fetch Rewards app lets you earn points for shopping.

Simply purchase a qualifying product or brand, upload a picture of your receipt, and earn points that can be redeemed for gift cards.

Although the earning power is typically lower than Ibotta, you don’t have to manually claim any offers in the app. Plus, every receipt is at least a few points.

Rakuten

Rakuten offers cash back rebates on certain qualifying purchases.

Simply shop with participating retailers via the Rakuten app or website, complete your shopping session, and earn money back for your purchases.

Upside

Upside lets you earn cash back rewards on certain purchases, including gas, groceries, and restaurants. Just open the Upside app, claim the offer you want, shop as usual, and earn money back.

Serious About Making Extra Money?

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