A cashback reward scheme is a specific incentive programme operated by many credit card providers where a portion of the money spent on their particular cards is taken back as a cashback payment. It’s easy enough to understand why so many people would like to get cashback on any purchase they make. It would be particularly hard to resist shelling out cash for a new jacket, laptop computer or perhaps a trip away. Cashback schemes are increasingly popular on many credit cards in a bid to boost loyalty and encourage people to use their cards more often. Of course, cashback offers are also useful to those who need it most, such as frequent shoppers.
So, what exactly is cashback? Simply put, it is any percentage that you are entitled to as a result of a rebate check that you make when making a purchase. These checks are often sent in the form of vouchers which can be used by your favourite retailer or by your bank. A small percentage will be taken off the price of whatever you buy, and this amount is generally based on the rate of your chosen retailer’s cost. You will have the satisfaction of being reimbursed for the cost that you have paid. For retailers, it is a way to lure customers back onto their sites by offering them a better deal than they could get elsewhere.
Credit card benefit schemes are not the only way to earn cashback. Other ways include merchandise purchases and services that you have already completed. For example, you may be entitled to a small percentage when you buy one bottle of wine. If you were to complete a shopping basket at the same time, you could still earn cashback on the purchase.
It is important to understand how the cashback reward programs work when choosing an offer. Many credit card companies will offer cashback rewards in different shapes and sizes. The first step to finding out if you are eligible is to contact your retailer or the company that manages your cards. Most retailers have a special section that will allow you to compare and choose between your available offers. It is important to remember that cashback is only awarded once per purchase, meaning that you cannot cashback yourself.
Most credit card companies offer cashback reward programs with a small percentage point increase from one year to the next. This means that you can continue to receive small percentage increases over your lifetime. The more you use your card, the better your chances of receiving high amounts of cashback. At the end of every year, you should have enough cashback points to cover any balance remaining, and possibly even apply them toward your next purchase.
If you have lots of unused reward points, you might wonder why you would need to use them. Most of us use our credit cards as a source of funds for major expenditure items such as a new flat screen television, a new computer system or other such large purchases. While the cashback feature of some credit cards is very enticing, it can quickly become a burden if you carry a balance on your card from month to month. If you do not pay off your entire balance in full each month, then you are only receiving a small percentage of your original investment each time you make a purchase. This can quickly add up to a substantial amount of money that you are paying back unnecessarily.