10 Quick Tips About Cashbacks
While cashback sites may be great to help you earn extra money on purchases, always be wary and keep some important points in mind before you avail them. Indians are slowly warming up to the idea of getting cashback on purchases, but it’s important to realize why they may not always be the best bet.
Some of the biggest players in the cashback scenario are wallets like Paytm followed by rivals MobiKwik and Free Charge and others like PayUMoney, etc.
Before you zero in on any cashback offer, always remember the points you should watch out for.
Important tips on Cash backs
Check the discounted price
Whenever you are lured to purchase something because of a cashback offer, always remember to check if the final price is discounted compared to the original price of the product. It’s not an exaggeration to state that some players increase the price and then offer cashback. So don’t blindly opt for such offers. Check out the price on relevant price sites before you zero in on the purchase.
Cashbacks for multiple purposes
The biggest advantage is that you can save more than choosing any discounts on offer. For e.g. if a mobile phone has an MRP of Rs.30,000 and an e-commerce site offers it for Rs.25,000. Whereas a cashback site is offering you a Rs.5,000 cashback. How do you decide? You save more on the cashback site. Here’s how. You can use the money in different ways depending on whether it’s an open or closed wallet.
For the uninitiated, an open wallet can be used to pay utility bills, for cab services or at any store or website which will accept it. They can also be used for funds transfer and cash withdrawals. Closed wallets like Makemytrip can be used for buying goods or services of the company exclusively offering them.
Another important point you should keep in mind is that according to RBI guidelines, you can add only Rs.10,000 per month to your wallet if you are non-KYC verified wallet users. So, if you are entitled to a cashback of Rs.13,000, you will get only Rs.10,000. However, the remaining 3,000 will be credited back the following month. Just apply for the KYC verification to enjoy higher spending and credit limit.
First time users only
Note that most sites offer cashbacks for first time users only, or the wallet offers them for its first time users. It is possible to structure selective offer programs. The idea of most wallets and sites is that if a customer enjoys the benefits of using it once, he will continue using it for convenience regardless of cashbacks.
Immediate cashbacks are useful
Always remember this! Getting cashbacks for immediate purchase is always going to be useful rather than settling for a discounted price on your next purchase. This will force you to use that particular site whenever you purchase next without giving you the option to try other better players.
Check Coupon Codes
Use the relevant codes when you need to avail offers. How do you get the coupon code? Use the wallet’s website or check the coupons in couponing sites like if you are looking out for recharge cashback search for paytm coupons for mobile recharge. You should use the relevant code in the coupon/promo code box as you check out. The final price will reflect the relevant price after your discount.
Use cashbacks with multiple discounts
This might save you a great deal. Keep in mind that there are sites which offer you only cashbacks. However you can keep a watch for sites with even better deals. A great score! Here’s how.
Grocery site AskmeGrocery offers 10% discount + 10% cashback on Mobikwik wallets. This is a double discount which is bound to lower your grocery bills a great deal. Such services are awesome and you should keep an eye out for them.
Check out the terms and conditions
Cashbacks come with terms and conditions and we urge you to watch out for them. For instance, if you recharge for an amount, you will be told that you will get 20% cashback. However there might be a cap on the final amount, like Rs.100. Or you might need to recharge to a high amount, say Rs.500 to avail them. Cashbacks which ask you to give proof of purchase or come after a long time are also deterrents.
So importantly, always check what are the terms specified before you avail these offers.
Many companies are encouraging customers to use apps. This could primarily be because they want the customer to remain loyal to them and not shift between tabs as is the case with websites. The biggest way to lure them? By offering cashbacks only on apps! Before making any purchase make sure to check if the cashback offer is available online or only on the app. For e.g. sites like Zomato try to offer maximum benefits for users of their app.
Watch out for 100% Cashbacks
It goes without saying cashbacks lure customers back to the site. And it’s also instant gratification for them, knowing that they are saving big money. So wallets like Paytm even give cashback offers up to 100 per cent in different categories. Paytm initially offered it for fashion, the sports and kids’ toys, followed by kitchen ware and electronics.
Mobikwik also offers customers 100% cashback on recharges made to their mobiles. Such strategic promotion s help wallets make their presence felt.
Cash Back Credit Cards
It’s not just wallets, you can also avail cashback credit cards from numerous banks like Standard Chartered which gives you discounts based on your purchases. Some offer the same cash backs on all purchases. Yet, others offer higher cash back rates on certain categories, such as groceries or gas, and lower rates on everything else.
Choose the right card based on your requirement and spending pattern. For e.g. if you spend more on utility bills then Standard Chartered Super Value Titanium Card is right for you. It offers cashbacks whenever you pay your bills. Cash back credit cards are just getting big in India and you can apply for them to avail good offers. Another example is HDFC’s MoneyBack credit card which helps you enjoy cashbacks on your everyday spends.
Lastly, customers who try to catch in on this fad state that the only disadvantage they faced was on quality or packaging of the orders and never the discounts. They insist on using wallets to the tune of Rs.3,000-Rs.4,000 and credit cards for bigger purchases.
The biggest advantage of entities like Paytm is that cashbacks to your wallet are immediate, usually within 1-2 days. Rachna Prasad, marketing head of Oxigen a mobile wallet says, “Cashback is a win-win from a customer point-of-view. But, we offer it selectively. We know we cannot continue it for a long time. So, we don’t do it on a blanket basis. Currently, we are offering it on first-time usage for recharge and for movie tickets with PVR.”
Go ahead, and make the best use of these exciting offers with the tips in mind. They have the advantage of being simple and you enjoy the benefits immediately.