Want to get real money back when you shop online? Cashback websites and apps do just that and can be a great way to generate extra retirement income.
The idea of a retailer just handing back part of the price you just paid for an item seems too good to be true at first.
But cashback websites and apps are definitely real, and offer big discounts on virtually any item you can buy online.
How they work
The website or app is paid a commission for each item purchased through them, then part of that commission is passed on to you.
To get your money, you’ll need to provide the cashback service with your PayPal or bank details. There are even cashback services that can pay directly into your superannuation account.
You’ll also need to make sure you make your purchases through the site or app in order to get paid.
Shopping directly through the retailer won’t earn you a commission, but many cashback services have web browser extensions that can take you directly from the retailer’s site to the cashback site.
It’s important to note the payments are not immediate. This is because the retailer has to approve your cashback with the provider, which can take up to 100 days. This is to stop people simply returning the items for a refund after payment.
These are some of the best cashback websites and apps available in Australia right now, according to consumer group Canstar.
Cashrewards
Cashrewards says it has more than 2000 major Australian and international brands and retailers linked to its site, including Apple, Amazon, Myer, Asos and even Liquorland.
Canstar says the average cashback amount across all retailers on each purchase is around 7 per cent, meaning a $100 purchase would get you $7 back.
Cashrewards has apps for Apple iPhones, iPads and Mac computers, an Android app and a browser extensions for Google Chrome and Firefox.
ShopBack
ShopBack also has more than 1500 major retailers signed up to its service, including Big W, Chemist Warehouse and online marketplace eBay.
Savings can be as much as 20 per cent, and there are frequent daily specials and other promos.
ShopBack also has iOS and Android apps, as well as a browser extension it calls the ShopBack Button.
Boost Your Super
Boost Your Super (BYS) works in a similar way to other cashback websites and apps, but pays your money directly into your super, rather than your bank account.
It can be a great way to add a little extra to your retirement savings without any extra effort. BYS has more than 680 partner retailers including accommodation platforms such as Booking.com.
Again, cashback amounts vary between retailers. Expect around 2.5 per cent cashback on purchases made at Cotton On, 2 per cent through eBay and 3 per cent with Menulog.
Payments made to your super in this way are considered non-concessional contributions by the Australian Tax Office. As such, they are capped at $110,000 per year.
You’re highly unlikely to hit this cap with cashback purchases alone, but it can be something to keep track of if you intend on making a large after-tax payment to your super.
The BTS service is only available through the website, and does not offer any smartphone apps.
Privacy concerns with cashback apps
In the wake of the Optus and Medibank scandals, it pays to be a little wary of what personal information of yours is out there.
The saying, ‘on the internet, if the product is free, then you are the product’ applies with cashback apps. You are getting a seemingly too-good-to-be-true offer of cash back just for making purchases.
What the apps are getting in return is your data, and not just the data you enter into the app itself. The privacy agreements of many of these apps give explicit permission for information such as your location and activity within other apps to be accessed, often for the purposes of ‘delivering targeted advertising’.
Accepting these intrusions is often the price you pay for using the app, so take your time and read exactly what each app is asking of you and decide if it’s for you.
Have you tried any of these cashback websites or apps? Do you know of any others? Let us know in the comments section below.
Also read: Bank customers a step closer to protection from scams?
My Coles FlyBuys card, that I use judiciously each week, provided me with $350 of gift cards for Christmas and $150 of cash off my Christmas shop. And there are only two of us so I cannot understand why people don’t sign up for the card.