What is cashback
The exact translation of cashback means a refund. Is a bonus system introduced by the financial institutions. It attracts new and increases the level of trust of regular customers.
The principle of incentive is pretty simple. When buying on the owner’s account is returned to a certain percentage of spent (5 – 10%). Some stores return amount reaches 20-30%. Rate depends on product prices, type of card, commercial, etc. Innovation contributes to the development of cashless payments.
Answering the question of cashback what is and what is its profitability, for example, the refund profitable for financial institutions and cardholders. The cards can be credit, debit, and versatile. Of course, to use the offer nice and helpful. But when making a cashback card I advise you to first clarify the value of her service.
Often, the financial institution offers a return percentage of the money spent only where prices are initially high. So before you can use the bonus is to calculate how much it is economically justified.
Select for and against
A proactive use of cashback and very pleased. Others are skeptical and do not know whether they need such a function. We mention some points that will be useful to both the first and the second.
- Ask what shops are partners of the program. If you don’t buy their products or do so rarely, what do you gain?
- Fleshing out the annual service fee and card issuance, instead of the award not to get a negative result.
- Find out what operations a reward not to wait for him in vain. Bonus for withdrawals, transfers to e-wallets and other operations are usually not given.
- Note the limit set for the Cashback. There is usually a amount above which the bonus is not credited, how active do not use a map.
Of course, in the case of the debt on the loan interest is not accrued. We emphasize that most of Cashback credit cards. Holders know that partially used refundable. So often go beyond the terms of free use. As a result of the cash back spent on the payment of arrears for the loan. And the Bank does not lose money.
For any financial institution credit card is preferable. Therefore, customers are offered additional attractive features, such as cashback which is typical for the specified type of cards. For consumers, this often becomes a powerful argument. Especially when the credit card in full keeps the functions of debit cards, customer choice is obvious.
To cash back was the best
In a large city has the opportunity not to hold cash. Get yourself in the habit of doing.
Buy 3-4 cards of different banks in the pursuit of cashback not worth it. A one buying goods in the store, another to pay for gasoline, and the third for lunch in the cafe. In the end, all extracted cashback eats aggregate service cards. Before you draw a card, count how many operations you’ll really be able to carry out. And to the extent economically justified.
To be sure to pay the right amount put on a card all required payments:
- at HCS;
- for mobile;
- education etc.
Use the card for convenience and fun, earn discounts and enjoy your life!