What is cashback and how does it work?

Key points:

• Cashback programmes let you earn a percentage of your spending back, whether you use a credit card, debit card or cashback website.
• Different providers and cards offer varying rates and payment schedules – so it’s a good idea to compare options.
• Using cashback for everyday purchases and paying off your balance in full helps you maximise the benefit.
• Cashback isn’t the only way to get rewarded – alternatives like loyalty points, air miles and store perks can also boost your savings.
• Always check the terms and conditions, and choose the rewards programme that best fits your spending habits.

Cashback is a simple way to get a little money back when you spend. Whether you’re using a credit card, debit card or a cashback website, you earn a percentage of your purchase back as a reward. It’s basically a thank you for spending.

How cashback works is pretty straightforward. You spend money, and your provider (like your bank, card company or a cashback site) gives you a slice of that back – usually as a percentage of your purchase. For example, spend £100 with a 1% cashback offer, and you’ll get £1 back. Just a heads up: we’re talking about cashback as a reward here, not physical cash that you can get at some checkouts.

Credit Card Cashback

Credit card cashback means you get a percentage of what you spend back as credit. Depending on your card, you might see your cashback paid monthly, quarterly or even once a year. For example, if your card offers 2% cashback and you spend £200 at your favourite shop, you’ll get £4 back.

How much you get depends on your provider. Some cards tempt you with higher cashback rates at first, then settle into a lower rate. Others keep things steady, or change the rate depending on where you shop – so you might earn more at the supermarket than at a department store.

It’s worth shopping around to find a card that matches your spending habits and gives you the best deal.

When should I use a cashback credit card?

The best way to use cashback credit cards is for your regular, everyday spending – think groceries, travel or filling up your car’s tank. The trick is to pay off your bill in full each month so that you’re not paying interest and your cashback really is a bonus. It’s a smart way to make your money work harder for you, but don’t let the rewards tempt you into buying things you don’t need.

Cashback through a bank account

If you check out your bank’s offerings you might find they have a cashback incentive, too. Some banks offer rewards once you’ve activated them online (anything from supermarket spending to a trip to the cinema). It’s best to check your existing account to see if there are any cashback offers that could suit your spending habits, as well as checking comparison or cashback sites to find the best offers for you.

What are cashback sites?

Cashback sites are websites or apps that act as the ‘middleman’ between you and the shops you love. You start your shopping journey on the cashback site, click through to the retailer, and earn a reward for your purchase. These sites make money by earning a commission from the retailer, and then sharing a chunk of that with you as cashback. It’s an easy way to get a little extra back on everything from clothes to car insurance.

Getting cashback from us

If you’d rather not use a credit card, the Chase debit card could be a great alternative for getting cashback. With Chase, you earn cashback on eligible purchases using your own money – not borrowed money. The best part? Your cashback is worked out daily and paid straight back to you so you don’t have to wait to see how your rewards are building up.

Approached in the right way (and used for the regular everyday items you are used to spending your money on) a cashback card could help you save while you spend, giving you more flexibility and spending power in the long run.

Other rewards programmes

If you aren’t keen on cashback cards, there are plenty of other rewards programmes out there, like air miles, loyalty points or store-specific perks. These can help you save on travel, get discounts or unlock exclusive deals – so you can still make your spending go further, even if cashback isn’t for you.

Cashback is usually a super simple way to get a little something back for the spending you’re already doing. Whether you use a credit card, debit card or cashback site, it’s all about making your money work a little harder for you. Just remember to compare your options, spend wisely and enjoy those rewards as they come in.

Frequently asked questions about cashback

Is cashback free money?

It can feel like free money, but really, cashback is a reward for spending. As long as you pay off your credit card balance in full and avoid interest or have a provider with no monthly fees, it’s a genuine bonus. Otherwise, fees and interest could outweigh your rewards.

How is cashback paid out?

Cashback can be paid in a few different ways – sometimes as credit, sometimes as a direct deposit or even as cash. How often you get paid depends on your card or provider; it could be daily, monthly, quarterly or annually. Cashback with Chase means we'll credit your rewards balance with cashback after the relevant debit card payment has cleared. We’ll also round your cashback earned to the nearest penny.

Can I get cashback when I use Apple Pay?

Yes! If your credit or debit card offers cashback, you’ll usually earn it when you pay with Apple Pay, as long as your purchase is eligible. Just check your card’s terms to be sure.

Are there limits to how much cashback I can earn?

Some cards and sites set limits on how much cashback you can earn, either monthly or annually. Always check the terms and conditions to know if there’s a cap. At Chase, the cap is £15 a month.

How do I get cashback?

You can get cashback by using a cashback credit card, debit card or shopping through cashback websites and apps. Just make sure your purchases are eligible and follow the provider’s instructions.

18+, UK residents. Eligibility applies. 1% cashback on debit card spending on groceries, everyday transport, fuel and electric charging points for your first year as a new customer. Max £15 per month. Exceptions apply. May be changed or withdrawn.