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  • Writer's pictureMedha Pandey

What is Cashback? All You Need to Know about Cashback in 2024!

Updated: Jun 19


what is cashback
What is Cashback?


Imagine you’re lounging on your couch, scrolling through your favorite online store. You find the perfect pair of shoes you’ve been eyeing for weeks. As you click "checkout" and enter your card details, a small notification pops up: you’re getting some money back just for making this purchase. It feels like a pleasant surprise, right? 


This is the charm of cashback – a little bonus from your bank or card company for your spending. 


But there's more to it than just a few dollars saved. Let’s delve into the world of cashback, explore its true benefits, and see why it’s something that can make a real difference to your finances.


Table of Contents


What is Cashback and How Does it Work?


Definition of Cashback: What is Cashback?

Cashback is a reward program where you earn back a percentage of the money you spend on purchases. It’s like getting a small rebate every time you buy something with your card.  

For example, in benny, you can get up to 40% cashback on all your purchases. The number of times you can get cashback is unlimited.


How Does It Work?

Here’s the deal: when you make a purchase, a percentage of that amount is credited back to your account.  


Many people assume cashback programs as scams because they do not understand the mechanism behind them. Here’s how it works:


Cashback Rewards

Apps like benny offer cashback rewards to users who shop through their platform. When you make purchases via Benny, you receive a portion of your spending back in the form of cashback. This cashback serves as a monetary reward, giving users a sense of satisfaction and happiness by effectively reducing the overall cost of their purchases.


For example, if you spend ₹100 and the cashback rate is 5%, you get ₹5 back. This reward can be in the form of a credit on your bill, a deposit to your bank account, UPI, or points that you can use for future purchases.


Through affiliated programs

Again online shopping and cashback platforms like benny partner with various brands and stores. They collaborate with the merchants (online stores and brands) from whom you are shopping. The merchants accredit the cashback platforms to bring potential users to their platforms. The cashback platforms then pay you the same amount as cashback.


what is cashback - app benny

Pros and Cons of Cashback

Understanding the benefits and drawbacks of cashback ensures you make an informed decision to maximize your savings and avoid potential pitfalls. 


Here you go…


Pros of Cashback

Earn on Everyday Purchases

Cashback rewards turn regular expenses like groceries, fuel, and dining into opportunities to earn back a percentage of what you spend, effectively reducing your overall costs.


Attractive Bonus Offers

Many cashback cards offer substantial signup bonuses, allowing you to earn significant cashback just by meeting the initial spending requirements.


Simplicity and Usability

Cashback is easy to understand compared to other rewards like points or miles, making it simpler to see and use the actual value of your rewards.


The Joy of Gamification

Cashback programs come up with milestones and rewards that are also known as gamification features. They feel as good as winning levels in games.


This adds to the happiness of shopping, which already acts as a therapy for many.


Cons of Cashback Programs

Potential Delays and Limits

Cashback rewards may have delays in processing or be subject to caps, limiting the immediate benefit and total amount you can earn. 


Haven’t you yet downloaded the fastest cashback app? Download benny! 


Card Cashback has Higher Costs for Some

Cards offering generous cashback may have higher annual percentage rates (APR), which can lead to costly interest if you carry a balance.


Card Cashback also has Annual Fees

Many cashback cards come with annual fees that can offset the rewards earned, particularly if you’re not a heavy spender.


Types of Cashback Offers


Flat Cashback

Flat cashback offers a fixed amount of money back on every purchase, regardless of the amount spent.


For example: Spend ₹100 or ₹1,000, and you’ll get the same fixed cashback amount each time.  


Percentage-Based Cashback

Percentage-based cashback rewards you with a percentage of your purchase amount.

For example: For instance, a 10% cashback offer on Amazon means you get ₹10 back for every ₹100 spent. The more you spend, the more you earn.


Conditional Cashback

Conditional cashback is awarded when certain conditions are met.

For example: These might include spending a minimum amount, shopping during specific times, or purchasing particular items. For example, “Get ₹20 cashback when you spend ₹100 or more.”


How to Calculate Cashback

Calculating cashback is straightforward. Multiply the total amount spent by the cashback percentage. 


For example, if you spend ₹200 with a 5% cashback rate, you earn ₹200 * 0.05 = ₹10 in cashback.


How to Earn Cashback?

Follow these steps to earn cashback:

1. Use the Right Card: Choose a card that offers the best cashback for your spending habits. Some cards offer higher cashback rates for groceries, fuel, or dining out. One of the best cards for cashback is the SBI Credit Card. 


💡To learn which credit card is best for online shopping and getting cashback read: Which credit card is best for online shopping?


2. Take Advantage of Special Promotions: Keep an eye out for special promotions where you can earn extra cashback. These are often tied to holidays or specific spending categories.

3. Pay Off Your Balance: To truly benefit from cashback, pay off your card balance each month to avoid interest charges that can negate your rewards.

4. Combine Cashback with Discounts: Use your cashback card during sales or with discount coupons to maximize your savings.

5. Track Your Spending: Use apps or your bank’s online tools to monitor your spending and see where you’re earning the most cashback.


How to earn cashback on benny?

Follow these steps to earn cashback from benny:

Step 1 

Go to any of the 160+ stores on the benny app

Step 2

Shop as usual - Add to cart & Pay

Step 3

Cashback will be automatically processed

Step 4

Cashback will appear in benny app’s History section

Step 5

Redeem cashback into your Bank account directly



➡️To understand these steps in detail read: Get cashback while shopping online on benny! Here's How!

                                                     

Real-Life Examples and Success Stories

Here are honest and detailed reviews of benny, the online shopping and cashback app in India:


Deeksha, an app user says, 


“Love the flow of the app. Very easy to use and is on point. I have discovered amazing offers on the app which helped me save so much. Also, the card sharing really helped me understand how I can save more SAFELY. It is totally a safe app and easy to use. Thanks benefix. It was much needed.”


Saket says

“I have used lots of app for cashback on shopping but i love benny because it's tracking time is so fast and money credited within a month . Fantastic app👍👍”


Amrita says,

“The app made many a things easier for me...it not only helped me save by getting more and more cashbacks but also helped me share my cards with my family members with the assurity of security. As it is we are shopping online but it is a pleasant feeling that a small amount is returning to me...”



How is cashback credited?

After you shop at a store online, your order is tracked for a successful order placement. Once this is confirmed your cashback is then in processing for some days depending on the store and the cashback app.


Next, once the cashback is approved you can redeem your cashback. Different apps have different ways to transfer the cashback amount. Some transfer it to the app’s wallet and some directly into your bank account.


How is cashback credited in benny?

After placing an order, check the History section of your app for cashback tracking, which usually updates within 24-48 hours. You can monitor its status from Processing to Approved. 


benny approves all cashbacks in 25 days, the fastest in India. You'll receive an email and notification upon approval. To redeem, tap "Redeem Now" and enter your UPI ID to get the cashback in your bank account within a day.


Understanding the Terms and Conditions of Cashback Offers

Knowing the fine print can save you from disappointment. Here’s what you need to know about cashback terms and conditions in Indian Market:


Hidden Fees

Some cashback cards come with hidden fees such as annual charges, foreign transaction fees, or high interest rates if balances aren't paid off. Always read the terms carefully to avoid unpleasant surprises.


Expiration Dates

Cashback rewards often come with expiration dates. Make sure you use your rewards before they expire to get the most out of your earnings. Typically, this information is available in your account details.


Time for Cashback Processing

Cashback rewards usually take a certain period to process and appear in your account. This can range from a few days to a couple of months. Patience is key!


Order Returns/Cancellations policy

If you return a purchase or cancel an order, the cashback earned on that purchase is usually deducted from your account. Make sure to account for this in your cashback calculations.


Top Cashback Providers in India

India has several leading cashback platforms that offer great rewards:


tops cashback app

benny - Best Cashback App for All Types of Online Shopping

benny offers a seamless shopping experience with 160+ leading stores like Amazon, Flipkart, Myntra, and Nykaa, providing up to 40% cashback, verified coupons, and bank offers all in one app. Users can track cashback, compare products, and shop from screenshots for maximum savings.


MagicPin - Best Cashback App for Local Deals

MagicPin excels in offering cashback on local experiences like dining and shopping, with personalized offers and gamified rewards for an engaging user experience. It’s perfect for saving money at nearby merchants.


FreeCharge - Best Cashback App for Bill Payments

FreeCharge is ideal for earning cashback on bill payments, mobile recharges, and utility bills. It integrates seamlessly with banking services, allowing easy redemption through its digital wallet.


CouponDunia - Best E-commerce Cashback App

CouponDunia provides extensive coupons and cashback for online and in-store purchases across various categories. Users can earn and redeem cashback easily, with real-time notifications for the latest deals.


Google Pay - Best Cashback App for UPI

Google Pay offers cashback on UPI transactions with a user-friendly interface and integration with other Google services. It provides a seamless payment experience with rewards on various transactions.


Cred - Best Cashback App for Credit Card Payments

Cred rewards users for timely credit card payments with a comprehensive rewards program and multiple redemption options like gift vouchers and cashback. It’s perfect for maximizing credit card benefits.


PhonePe - Best Cashback App for Recharge

PhonePe offers a robust rewards program for recharges, bill payments, and shopping, with flexible redemption options and a user-friendly interface. It’s a top choice for earning cashback on a wide range of activities.


Tips for Earning Maximum Cashback


✅Use the Right Card: Choose a card that matches your spending habits.


✅Know the Categories: Some cards offer higher cashback in specific categories like groceries or dining.


✅Stay Updated on Offers: Keep an eye out for special promotions and seasonal offers.


✅Pay Off Your Balance: Avoid interest charges by paying your balance in full each month.


✅Stack Deals: Combine cashback with store sales and discount codes.


✅Set Alerts: Use apps or your bank’s notification service to stay informed about cashback opportunities.


✅Shop Through Cashback Apps: Use reliable online cashback apps to earn rewards on your purchases.


✅Use for Large Purchases: Maximize cashback by using your card for big-ticket items.


✅Track Your Rewards: Regularly check your account to ensure you’re getting the cashback you’ve earned.


✅Refer Friends: Some cards offer referral bonuses that can add up quickly.



Frequently Asked Questions [FAQs] about Cashback

How to Redeem a cashback?

Redeeming cashback can vary from card to card. Some allow automatic redemption into your bank account, while others might require you to manually redeem points or cash.


Is Cashback Safe?

Yes, cashback is generally safe as long as you use it wisely. Stick to reputable banks and card issuers, read the terms and conditions, and ensure you're not overspending just to earn rewards. By being mindful, you can safely enjoy the benefits of cashback without any risks.


Is cashback free money?

Yes, cashback is essentially free money that you earn on your purchases. When you shop using the benny app, you get a percentage of your spending back as cashback, which you can redeem directly into your bank account.


What is cashback in simple words?

Cashback is a reward program where you get a small percentage of the money you spend on purchases returned to you. On benny, this means you save more every time you shop at any of the 160+ stores available in the app.


Is cashback good or bad?

Cashback is generally good as it provides additional savings on your purchases. With benny, you can maximize your savings through cashback, verified coupons, and bank offers, making it a smart choice for online shopping.


Is cashback real money?

Yes, cashback is real money that you can use. On benny, the cashback you earn can be directly transferred to your bank account via UPI, making it easily accessible and usable.


How to redeem cashback?

Redeeming cashback on benny is simple. Once your cashback is approved, tap the "Redeem Now" button in the app and enter your UPI ID to get the money transferred directly to your bank account.


Who pays cashback?

Cashback is paid by the merchant or the cashback platform. When you shop through benny, the app partners with these merchants to provide you with cashback as a reward for your purchases.


What is a cashback credit card?

A cashback credit card offers a percentage of cashback on every purchase you make with the card. Using these cards on benny can earn you additional savings through combined card offers and app-exclusive deals.


What is a cashback debit card?

A cashback debit card gives you cashback rewards on purchases made directly from your bank account. When using such cards on benny, you can benefit from both the bank’s cashback offers and benny’s app-specific deals.



Final Takeaway on What is Cashback

Cashback is an easy and rewarding way to get more value from your purchases. Here’s a quick recap of the key points:


  • Definition and Function: Cashback is a program where you earn back a percentage of the money you spend on purchases, either as a direct rebate or points.

  • Types of Offers: There are various types of cashback offers, including flat cashback, percentage-based cashback, and conditional cashback.

  • Pros and Cons: While cashback offers extra savings and spending incentives, be mindful of potentially high interest rates and annual fees.

  • Terms and Conditions: Always check for hidden fees, expiration dates, and the processing time for cashback.

  • Top Providers in India: Leading cashback platforms like benny, Paytm, Amazon Pay, and Flipkart offer significant rewards.


Using cashback effectively can lead to substantial savings. Choose the right card, stay updated on offers, and combine deals to maximize your benefits.  


Thanks a lot for your time, hope the think piece was of help! Please let me know if you have any questions in the comment section! Do heart the blog post if you liked it!



 



 




 


 


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