Bargain hunters beware: Cashback is the new Payback
Do you collect loyalty points? For many consumers, this sentence at the checkout is the start of big savings. What are the benefits of payback systems? And is cashback – the repayment of cash – better?
“Do you have a Payback card” or “Do you collect Payback points?” You’ve probably heard this question many times at the checkout when shopping. No wonder, because Payback is world’s best-known discount card offer. Many customers use it because “everyone does it”. But is it even worth it? And isn’t there a better alternative to save a little with prices rising all the time?
One thing can be revealed: Cashback is the new Payback – Spoilers from our editorial team.
To help you keep track of things in the future, we have looked at the popular savings options Payback and Cashback for you – and have summarized the most important results here in a clear manner.
What exactly is meant by “Payback”?
Payback means something like “getting something back for what you have spent”. Large companies such as Amazon, Alnatura, Aral, Apollo-Optik, Penny, Burger King, Aral, Shell and hundreds of others offer the opportunity to collect Payback points.
It works like this: Normally, you get one Payback point for every 2 dollars worth of purchases. For many retailers, this equates to around one cent. On promotional days or during special offers, however, you are often credited with significantly more points.
The points collected are then paid out in the form of vouchers. Alternatively, you can redeem the Payback points you have collected at partner retailers when you have at least 200 points. Payback points expire after 36 months. Cash payments are not possible.
How can I use Payback?
Payback points can be collected using apps on your mobile phone or with a customer card in EC card format. The mobile phone or card is scanned during the payment process at the checkout to credit the Payback points to your Payback account.
According to Stiftung Warentest, eleven million people use the Payback app on their mobile phones, and around 31 million people in total use this customer loyalty program – via the app or customer card.
To get a Payback card, you can simply ask participating retailers directly in the store. Alternatively, you can order the Payback card on the Payback homepage.
The easiest way to collect Payback points is with your mobile phone. Most people have one with them, but it’s easy to forget a customer card at home.
Depending on where you shop most often, all participating retailers have their own Payback app.
Does Payback help you save money?
Unless you get a great promotion with tons of loyalty points for your purchase, Payback is of little use. As we found out when testing 13 different customer loyalty programs, the minimum discount is often only 0.5 to 1 percent.
No discount app offers such great price advantages on every purchase that bargain hunters should definitely have on their smartphones. -Stiftung Warentest-
What is Cashback and how does it differ from Payback?
Payback may be one of the largest discount programs in the world, but it is by no means the only one. The cashback system is in the fast lane and is currently moving into first place.
Cashback means something like “getting cash back”. And that’s exactly what cashback is, because at the end you can get cash paid out.
Cashback portals offer customers special offers in various partner shops. Those who shop there sometimes get special discounts – and also a certain number of cashback points based on the purchase value. This cashback can then be exchanged for either cash or vouchers. Amazing, Right?
The discounts and the value of the points vary depending on the portal. According to the latest research, the amount of the discounts differ greatly and is between 3 and 6 percent. However, a few platforms like Yalcash also offer up to 15% cashback offers.
Is Cashback better than Payback?
We compared eight cashback portals with the three major discount card providers (Payback). The result: good cashback providers offer between three and six percent on purchases – some even offer more than fifteen percent. How much you can save with cashback also depends on the retailer and the service or product purchased.
The result is clear: bargain hunters should rely on cashback – Verdict of the experts.
What cashback systems are there?
More and more consumers who want to save money are now opting for cashback instead of payback because they prefer to get cash back. They can choose between different providers however, if you’re unable to find any reliable cashback platform with good deals, you can definitely give Yalcash a try.
At Yalcash, you can get up to 15% cashback on most retailers and the list on the website is huge so big savings will be waiting for you! Don’t miss out on this opportunity.
How can I use cashback?
Choose a cashback portal that you would like to register for. All you need is a valid email address and a password. As soon as you have completed all the steps of the online registration, you will receive a confirmation by email – and you are now a cashback member.
To shop, go to the website you want through the link of that cashback platform that you choose and shop there as usual. After your purchase, depending on the provider, it takes four to eight weeks for the discount to be credited to your cashback account. In order to be able to withdraw the money, you must provide either your bank details or your PayPal account (note: possible fees!).
Let’s conclude with a tip from our experts
Cashback programs can really help you out in saving some bucks and use them for your next purchases. However, The experts advise all cashback users to make sure that their purchase went smoothly.
For technical reasons, it can happen that a purchase process is not completed – and customers do not receive any cashback points. In this case, contact the cashback provider in writing and ask them to record the purchase retrospectively.
