How to earn cashback and rewards points on your credit card

How to earn cashback and rewards points on your credit card

  • Learn how to double dip on credit card rewards and cashback sites
  • Find out which credit cards will be your double-dipping ally
  • You can even get cashback direct from a credit card

When you shop online, earning cashback on each of your purchases is a nice little bonus, right? But are you maximising the shopping rewards that you could be earning? 

We’ll show you how, with some savvy shopping, you can double dip to get extra rewards. Simply combine your purchases via a cashback site with payment from your credit card.

Are you a double dipper?

double dip

There are times when double dipping isn’t the answer. That work function or catch up with friends, for example. Not the time to double dip. You don’t want to be the person that double dips their cracker into the homemade dip. 

In these instances, you need to learn to perfect the delicate art of getting two crackers, dipping them both, then using the other one to create an even spread across the cracker. It’s a fine art for sure.

But there are times when double dipping isn't frowned upon.

Instead, there are times when it just makes good sense. Like when you’re making purchases online. We all want the best deal possible, that’s a given. The key to being able to do this is to get savvy with how you take advantage of shopping rewards.  

We’ve explored in another blog the benefits of using a cashback website when making online purchases. It's a bit of a no-brainer to earn cashback of between 1-10% on purchases that you were going to make anyway.

But the really smart shoppers are combining cashback with using their credit card to earn points too. 

We look at a few ways you can maximise your shopping rewards from now on.

Make the most of Woolworths savings

Woolworths Australia

When you sign up with Cashrewards or ShopBack you can purchase Woolworths eGift cards with a 5% discount. So each $100 card will only cost you $95. Or if eGift cards aren’t your thing, you can earn 2.5% cashback from ShopBack instead. 

Both of these options sound like an awesome deal, right? And they are. But where you can really start making some awesome savings is when you combine it with your Woolworths Everyday Platinum Credit Card.

When you buy the gift card or do your Woolies shop online via ShopBack, use it in conjunction with your Woolworths Everyday Platinum Credit Card to pay.

This will give you the benefit of doubling up on your shopping rewards, as the credit card will reward you with:

  • 3 points for every $1 spent on all purchases of Woolworths Select and Woolworths brand products
  • 2 points for every $1 spent on other purchases at Woolworths supermarkets as well as Dan Murphy’s, Cellarmasters, BWS, BIG W and participating Caltex Woolworths fuel outlets
  • 1 point for every $1 spent on eligible purchases everywhere Visa is accepted

All the points you earn are automatically converted into shopping cards every four months. 4000 points convert to a $20 shopping card.

Say you average a $250 shop each week. Over the course of the year, if you take advantage of the 5% discount gift cards, rather than spending $13,000 in the year you will have spent only $12,350 – a saving of $650 just on the cashback alone.

But that $12,350 of spend on your Woolworths Everyday Platinum Credit Card would also have converted to more than 24,000 points or $120 worth of shopping cards, delivering you a saving of $770. Not bad for a few clicks on the computer and by using your credit card.

For the travel lovers among us

travel lovers

If you are a fan of travelling with Virgin Australia, then you can also take advantage of the double-dipping benefits of cashback combined with earning points on your rewards credit card.

With Cashrewards you can earn cashback on domestic flights of 0.70% or 1.00% on international flights. If you also need accommodation, car hire and want to do some activities on your trip then you can earn even more by booking these via Expedia. 

Cashback rates on other travel from Cashrewards for Expedia are:

  • Cashback on car hire: 2.10%
  • Cashback on hotels: 5.00%
  • Cashback on activities: 7.00%
  • Cashback on packages: 2.80%

If you also have one of the many Velocity Frequent Flyer cards that are on offer you can double up and earn points on your purchases too. 

Take the American Express Explorer Credit Card as an example. You can earn 2 Amex Membership Rewards points for every dollar spent on your card. And these points can be converted to Velocity points at a ratio of 1:0.5 so not only do you get cashback, but you also receive points for the whole amount of your purchase.

So let’s say in a year you spend $750 on domestic flights, $1,500 on an international flight, $2,000 on accommodation and $650 on car hire. With cashback, you'll receive $133.90 back. Plus, if you had the Amex Explorer credit card, you would also have earned 9,800 Amex Membership Rewards points in addition to the 100,000 sign-up bonus.

You might have known about one or the other before. And have earned either cashback or points by using your credit card. But when you combine the two, the benefits suddenly look a whole lot better. 

What about a cashback offer direct from the credit card provider?

cash back

Another type of cashback comes directly from the financial institutions who issue credit cards. When you apply for some credit cards, they will often come with special offers to entice you to choose that credit card over another. 

A lot of the time this can be in the form of bonus points on reward credit cards. But for lower rate credit cards the offer of cashback can be used as an appealing introductory offer. 

Take for example the Virgin Money Low Rate Credit Card. When you sign up for this card you can earn 10% cashback on spending in the first three months from card approval. It is capped at a $100 total and acts as a short-term reward.

With this type of card, you can certainly still double-dip in those three months, and earn cashback from somewhere like Cashrewards as well as receive the cashback on your credit card.

But it's more of a short-lived reward, and you then have a card with a low interest rate but no possibility to earn points on an ongoing basis.

For this type of credit card cashback introductory offer, be sure to read the specific conditions that need to be met to receive the cashback. Don't apply for the card just to get the cashback benefit. 

Instead, work out what type of credit card is going to suit your needs on a longer-term basis.

While cashback offers on credit cards can be a nice little bonus, over the longer term opting for a rewards credit card and getting cashback via a cashback website could be a more lucrative option.

There is almost always a chance to double dip

Double dipping french fries

If you shop online and have a rewards credit card, there’s just about always a chance for you to double dip and earn cashback and points on a single purchase. 

Cashrewards currently has over 1,200 partners that you can earn cashback from by shopping online. So, in most instances when you are looking to buy something, it would be rare for you not to find a listed partner that you could purchase from. 

And Cashrewards has just become Australia’s first cashback site to offer both online and offline shopping rewards if you pay with a Visa card. 

If you have a Cashrewards account, it’s a quick process to link up to five Visa credit or debit cards to your account so that you can earn cashback offline at retail stores and restaurants. This means you can save even more by combining the cashback benefits of online purchases with shopping in-store at a participating retailer. 

Given that this program has just been introduced, the list of participating stores is more limited than the online options, but we expect more retailers will jump on board to attract new customers and help to drive repeat sales. 

Are you a double dipper? Have you been taking advantage of the great combo of cashback and rewards points? If not, now is the time to start.