What is cashback?

Mistral001

A few people on the Santander thread mentioned getting "cashback". It is a term that I have heard, but do not really understand. I have heard checkout assistants in shops asking people if they want cashback. I have heard the term used with regard to discount sites and now in regard to bank accounts.
Does it mean different things in different contexts? Is it a tax avoidance mechanism? Is it smoke and mirrors to con people into feeling that they are getting something for nothing? Or is it just a straightforward discount or store loyalty scheme?

Cotta

Mistral001 wrote: »

A few people on the Santander thread mentioned getting "cashback". It is a term that I have heard, but do not really understand. I have heard checkout assistants in shops asking people if they want cashback. I have heard the term used with regard to discount sites and now in regard to bank accounts.
Does it mean different things in different contexts? Is it a tax avoidance mechanism? Is it smoke and mirrors to con people into feeling that they are getting something for nothing? Or is it just a straightforward discount or store loyalty scheme?

If one meets certain terms and conditions one gets an agreed sum of money back. E.g. if you take out a contract with a phone company for a year at £30 per month, they may offer you a £40 cash back incentive to help entice you, obviously you have to stay on cover for the year to avail of this.

tara747

Oh Lordy Lordy. 3 years on MSE and you don't know what cashback is?

Google Quidco, Topcashback and cashback credit cards.

They all give you a % of what you spend in cashback. Look at my sig to see how much I've earned in the last few years, just for buying stuff I would have bought anyway. If you're clever, you can earn more cashback than what you spend!

Incidentally, cashback at the till in supermarkets is different. It's only offered if you're paying with a debit card. They ask if you want cashback from your own account i.e. effectively it's the same as going to the ATM. It's usually capped at £50.

bingo_bango

Mistral001 wrote: »

A few people on the Santander thread mentioned getting "cashback". It is a term that I have heard, but do not really understand. I have heard checkout assistants in shops asking people if they want cashback. I have heard the term used with regard to discount sites and now in regard to bank accounts.
Does it mean different things in different contexts? Is it a tax avoidance mechanism? Is it smoke and mirrors to con people into feeling that they are getting something for nothing? Or is it just a straightforward discount or store loyalty scheme?

Three different beasts there.

Cashback in supermarkets is just getting cash from the till when you pay by card. Same as an ATM but without having to go to the actual 'hole in the wall'.

Discount sites like Quidco and Topcashback will pay you back a small percentage of the purchase cost if you use their site to visit a retailer.

With bank accounts, some of the better accounts will pay you a percentage of the money you spend back each month. e.g. you might get 1% of petrol costs back if you use your debit card to pay.

Cotta has given yet another example.

Different things in different contexts, just as you suspected, but are they a tax avoidance scheme? Cashback in a supermarket certainly not, just good customer service.
Cash back on bank spending.... possibly.

Mistral001

Thanks for those great replies. I genuinely did not know what it meant and I must say it annoyed me a bit, the pedantic person I am.


It makes sense to me now.

Cotta

Mistral001 wrote: »

Thanks for those great replies. I genuinely did not know what it meant and I must say it annoyed me a bit, the pedantic person I am.


It makes sense to me now.

Useful for all of us to refresh our knowledge, Tara and Bingo gave excellent examples.

I really should look into Quidco, everyone recommends this site.

tara747

You're most welcome, Mistral001! Glad to be of help. Let us know if you sign up to anything and what you think of it

steveymp

Cotta wrote: »

Useful for all of us to refresh our knowledge, Tara and Bingo gave excellent examples.

I really should look into Quidco, everyone recommends this site.

£1,700 cashback from Quidco over the years for things I buy anyway:o it really is a no-brainer

Cotta

steveymp wrote: »

£1,700 cashback from Quidco over the years for things I buy anyway:o it really is a no-brainer

I have two things I need to purchase namely a TV and Freezer, would Quidco offer a better deal than simply going direct to the retailer?

saverbuyer

Quidco is great. I've not managed to save thousands but easily a hundred or so a year.

Just be careful and double check the price before using quidco, some retailers increase the price for using quidco.

For the TV and freezer, curry, tesco etc offer a few percent cashback.