Cashback rewards are the purest form of rewarding customer loyalty. Apply for your cashback card below.
Cashback cards, instead of (or sometimes as well as) earning points for rewards, give you money back (or some kind of cash equivalent, such as a travel voucher) on your spending. Put simply, this means you save money on your expenses, usually for a limited time.
The most straightforward cashback credit cards pay back in cash either a fixed percentage (e.g. 10%) on all purchases made with the card, or a fixed amount of cash for reaching a specified spending target (e.g. $200 for spending $4,000). However, the cashback amount is almost always capped. E.g. a 10% cashback might be capped at $100.
There is also usually a time limit on when you can earn cashback, for example only in the first three months after card approval. (The ING Direct Orange One Platinum Credit Card is an exception to the time-limit rule, since cardholders can continue to earn cashback every month.)
Other cashback cards may award an annual travel voucher (e.g. a voucher worth $400) to be spent with a particular airline or with a travel agency operated by or affiliated with the card issuer. This is a particularly valuable kind of cashback for regular travellers, since it is awarded every year and the amount may totally offset the card’s annual fee.
Yet another form of cashback is an annual free return flight with the airline affiliated with the card for the purpose of earning frequent flyer points.
Finally, a card may offer to refund the annual fee every year to cardholders who reach a specified spending target (e.g. $6,000) during the year.
Cashback paid in cash is usually limited to a few hundred dollars at most.
Cashback paid in travel vouchers or travel credit or annual fee refund may vary from around $125 up to the value of a relatively long domestic return flight (e.g. Sydney to Perth).
Cards delivering a cashback in the form of a percentage rebate on purchases will almost always have both a cap on the amount of rebate that can be earned and a limit to the time during which cashback can be earned.
Cashback is only applicable to eligible purchases. Cash advances, buying foreign currency and travellers’ cheques, balance transfers and gambling payments do not earn any cashback.
Yes, quite often you can use it to pay off the outstanding balance or the card’s annual fee.
As with any other credit card, pay off your card balance in full and on time every month, otherwise the interest and late fees you pay on the outstanding balance will reduce the true value of the rewards.
It is very important to look at all the features of cashback credit cards before applying to make sure the deal will be genuinely beneficial: