Why everyone should consider a cashback program

Estimated reading time
 5 min

Learn all about:

• What cashback programs are
• The benefits of joining a cashback program
• How cashback programs compare to other rewards

As the saying goes, 'there's no such thing as a free lunch' – but anyone who's signed up for a cashback program might beg to differ.

Cashback programs are a great way to put some money back in your pocket. If you're not signed up for one, you might be missing out.

How does cashback work?

Essentially, cashback programs give you cash back when you make an eligible purchase at a participating retailer. They work a bit like a piggy bank – you could earn a little bit of cash each time you shop online, which adds up over time.

Cashrewards is a cashback program that is free to join and offers a wide range of popular retailers, including food and grocery providers like Menulog, online marketplaces such as Amazon, and travel sites like Booking.com. There are often great deals for everything from everyday products to big-ticket items like furniture and appliances from popular brands like Koala and Bing Lee. Your furry friends are even covered with Petstock!

You simply need to join the program and start shopping through the Cashrewards website or app at participating retailers. Then sit back and wait for the cash to start rolling in.

Being part of a cashback program may also give you access to special deals and advanced notice when things go on sale, which can help you to plan your spending more effectively.

For example, Ruby spends about $50 on pet food each month. She notices her cashback program has a 10% cashback deal on Petstock, and access to a special 20% off discount on some products. By shopping via her cashback app, she could save around $10 on her purchase and she’ll get a few dollars back. Once she’s built up a cashback balance, she can request to withdraw this using her preferred method offered by the cashback program.

What are the benefits of a cashback program?

One of the biggest (and most obvious) benefits of cashback rewards is, well, getting cash back. If you’re going to make a purchase anyway, then why not do it through one of these programs to get some money back in your wallet? It could be a good way to help support your financial wellbeing, especially during months when your budget is a little stretched.

While there are some steps involved in researching different programs, setting up a profile, and so on, the long-term benefits (and the cash you get back) could be worth the effort.
 

  Brain hack

If you can’t be bothered getting set up on a cashback program and the rewards seem far away, you might be succumbing to present bias. Present bias kicks in when we undervalue long-term future benefits by focusing on instant gratification. Yes, you’ll need to research the different programs, sign up, and then go shopping through a third-party website or app. But the long-term benefits of stashing that extra cash with each shop will absolutely make it worthwhile.

How does cashback compare to other rewards programs?

There are a great deal of loyalty and rewards programs to choose from in Australia. Most offer more traditional points-based systems, allowing you to earn rewards on selected purchases in the form of points, which vary in value across each program.

Many credit cards come with an in-built rewards program – so it's worth checking with your bank to find out what's on offer. You can also sign up for retailer-specific programs if you don't have a credit card or want something extra. Airline, supermarket and cashback programs are all ways to help add a little weight to your wallet each month.

Better yet, you can often land multiple rewards from different programs in one purchase. For instance, you could double-dip on rewards simply by using your credit card when shopping through a cashback site. This means for eligible purchases, you can score both the credit card points and cashback in one fell swoop.

Are cashback programs too good to be true?

There are few drawbacks to being part of a cashback program, although it is important to check the T&Cs before you get on board. (For example, is there an annual fee? Or do you have to spend a certain amount each month to be eligible?) You don't want to be overspending (especially using a credit card) just to reap the rewards. Some cashback programs may also have expiry dates, so it's worth considering whether you're actually going to withdraw your cashback or not.
 

  Brain hack

There’s a thought process called status quo bias which is the tendency to avoid loss and regret at all costs. Because deviating from the norm is considered risky, we do nothing but stay nice and safe in our bubble. In the case of cashback programs, it’s not really normal to shop your favourite brands through a third-party site or app. And it’s not ‘normal’ to get money back from each shop either. But by not joining a cashback rewards program, you might be missing out on big savings in the long run.

Take control of your spending

A cashback program isn't the only way to be a savvy shopper. Although it can seem a little old-school, looking for coupon codes or waiting for something to go on sale are powerful ways to take control of your spending. You can also keep an eye out for businesses that offer bonuses to customers who sign up for their mailing list or refer-a-friend.