What is Cashback?
Ever feel you're missing out on rewards by using your debit card over your credit card? New-age cashback programs now let consumers earn rebates on debit card purchases - like instant discounts without debt, fees or complicated points.
Cashback programs now let you maximise your money and get rewarded for everyday spending while sticking to your budget.
Cashback reward programs
Cashback is a rewards system that gives you money back for simply using your card. With every eligible purchase, you earn a percentage of the total amount spent right back into your account or wallet. It's like getting an instant rebate at the checkout counter, except better - because you're earning cash rewards just for buying the things you normally would.
Understanding different cashback reward programs
Cashback programs incentivise smart spending by putting money back in your pocket for a wide range of purchases. They come in various forms to suit different spending habits:
- Credit card cashback is one of the most popular, allowing you to earn a percentage back on all purchases or bonus rewards in specific categories like gas or dining out.
- Many debit card programs now offer similar cashback incentives without the risk of accruing interest or debt.
- For online shoppers, cashback websites and browser extensions act as rebate portals, where you can click through their links to earn a percentage back at thousands of retailers.
- Some apps even let you snap pictures of receipts to automatically get cashback on in-store purchases.
Whichever cards or avenue you choose, it's a rewarding way to save while you spend!
How do cashback reward programs work?
Each option has a slightly different way of operating:
- Credit card cashback rewards stem from deals between card issuers and retailers. When you make a purchase, the retailer pays a fee to the card company, which then shares a portion as cashback with you.
- Debit card cashback on the other hand is typically paid directly from your bank as a customer perk on purchases.
- Website portals negotiate cashback rates with retailers, passing those rewards to members who click through their links to shop, while browser extensions and apps typically charge you a fee to implement.
While the mechanics differ, all cashback programs incentivise spending by giving you a percentage back on purchases, turning everyday costs into minor money-makers.
The Tap cashback
Because everyone’s needs are different, we’ve designed a comprehensive approach to our cashback rewards program. Our rewards program is based on the amount of XTP you have staked as opposed to a one-size-fits-all flat rate, ranging from cashback rewards of 0.5% to up to 8%.
Tips for maximising cashback benefits
There are many ways to maximise cashback earnings responsibly, we suggest starting by setting your monthly budget and letting the cashback rewards be an incentive to stick to it rather than a reason to overspend.
From there, regularly review your purchases and adjust your card usage if needed. Finally, have a strategy for redeeming rewards in a way that reinforces your savings goals.
With discipline, cashback can boost your bottom line without upending your finances.
Tap Cashback Benefits for you
For savvy Tap users, understanding and utilising these cashback rewards effectively is a bonus, ideal for travel or at home. Earning even a few percentage points back on daily expenses like coffee, transportation, and dining out can translate to significant savings over time.
And with the cashback rewards program integrated right into the Tap app, it's easier than ever to get rewarded for smart spending without radically changing your spending habits.
Maximise these built-in rebates to tap into this financial win-win that shows how small changes can positively impact your personal finance.
A cashback bonus refers to any incentive program where customers receive a percentage of the amount they spend as a rebate, typically in the form of points earned on a credit card or rewards deposited directly into their bank accounts.
When a customer makes a purchase using their card, the retailer pays a percentage fee to the card company. In turn, the card company redistributes a portion of this fee back to the customer as cashback rewards. For debit cards, this cashback usually comes directly from the bank to the customer.
Yes and no. While cashback can seem like a rewarding experience when you're making regular purchases, it's important to note that you only receive cashback after spending money in the first place—so there's a transaction involved.
Yes, Tap provides cashback benefits to its users. With a basic account, you'll receive 0.5% cashback. Additionally, our premium account holders enjoy even greater perks, with special cashback rates reaching up to 8%.
Cashback rewards, unlike traditional rewards points limited to purchasing goods, services, or gift cards from the card issuer, are quite literally cash. Depending on the service provider, these rewards can be spent anywhere and not just at a single retailer as they would with a gift card.
Cash-back on a credit card means the card issuer refunds you a small percentage of the amount you spend on eligible purchases.