It sounds too good to be true, doesn't it? Get paid for spending your own money? And yet it is true, and you could be missing out on hundreds of pounds a year. There are credit cards which offer cashback, but today we are looking at websites and apps. 

So, what is cashback?

When you buy something online or in a shop, rather than doing it directly, you do it through your chosen cashback provider. You then receive a percentage of what you have spent. This is credited to your cashback account, and can then be withdrawn - usually as cash, although some offer the choice of a voucher. 

Hmm...what is the catch?

The first thing is you have to remember to do it, and you can't go back and get it afterwards if you have forgotten. The second thing is that it can take some time to come through. Usually you purchase is shown in your cashback account, but the cashback doesn't 'clear' for sometimes up to several weeks. Some cashback services make you reach a minimum balance of £5 or £10 before you can withdraw your money. Lastly, depending on your spending personality, it can encourage you to spend more to get more cashback. 

​Apps and Websites....what is the difference?

There are some cashback app providers where you open a free account with them, and register your bank cards. Then every time you use your bank card with the retailers who are signed up to their cashback scheme, you get a percentage of your spend credited to your cashback account. 

Pros

  • it is free money for little effort!
  • once you have registered your cards, you can forget about it - your purchases are automatically logged
  • you can also get loyalty points
  • sometimes one retailer is registered to more than one cashback provider (you can register with as many providers as you want to)

Cons

  • there is not always a wide variety of retailers signed up T
  • some people don't feel comfortable registering their bank cards
  • some apps make you renew your permission to store your card details every few months -if you miss a reminder, you will lose out on the cashback
  • you need to remember to register your new bank card if you old one expires or you change banks

There are other cashback website providers who have a website that you register on, then when you want to buy something you go to that website, search for the retailer, then click on the link they provide. You then shop as usual, and your cashback account will be credited. 

Pros

  • It is free money for relatively little effort
  • Once you are in the habit of doing it, it is quick and easy

Cons

  • Remembering to do it - and cashback cannot be applied if you remember after you have made your purchase
  • Some providers make you reach a minimum level before you can withdraw your cashback
  • It can take time to check which provider is offering the best cashback rate
  • It can be slow
  • If you buy your groceries through a supermarket app, you can't usually get cashback - you have to use the supermarket's website instead.  

Some providers offer a basic free account, but if you are willing to pay for an annual membership, they offer you higher cashback rates. 

So how much free money are we talking about?

Well it depends on what you are buying. Grocery shopping and takeaway deliveries are usually pennies per transaction - but if you do a weekly shop, that can soon add up. When you are taking out a new broadband or mobile phone contract, or buying an appliance, it can easily be anywhere from £10-£100 upwards. 

The rates can vary day to day on the same provider, and also vary across providers, so it is always worth doing a quick check, particularly if you are making a bigger purchase. 

Anything else I should know?

Before you join any cashback provider, make sure you are satisfied that they are genuine and reputable. The Holdfast Office team use cashback providers in our personal spending, but we cannot advise on or promote any individual provider. The Money Saving Expert has a really good article here, with a list of providers. Here is a list of twelve UK cashback apps for you to explore.

Look for referral bonuses before you sign up - you can do a google search for the provide and the phrase 'referral link'. When you sign up using a referral link, it doesn't cost you anything extra, and you usually get a bonus as does the person who gave you their link. Sometime you get a higher % on your first cashback purchase, sometimes it might be that you get your account credited with £5 for example. Once you are a member, you are often given your own referral links to share.  

Keep in mind that cashback is a nice bonus, but not guaranteed, so don't make plans for it until it is withdrawn and sitting in your bank account!






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