Online shopping has become a rage in India and people have been hooked on to them ever since they experienced the advantages. Cash backs on any purchase are some of the biggest reasons for luring customers to online shopping. Cash-back offers are valid on almost all kinds of expenditures or purchases done through the credit card. That is, besides spends on shopping and eating out, even balance transfers and bill payments are eligible. Here are some important points you should keep in mind when you avail cash backs.
Important Cashback tricks and tips
1. KYC verification – get it done
You have just spotted huge cashback offers greater than Rs.10,000 when you purchase a MacBook from a particular site. You happily try to avail it for more purchases you might want to make and end up realizing you got only Rs.10,000 in your wallet! Wonder why?
According to the RBI issued guidelines, you can add only up to Rs.10,000 in your wallet in case you are a non-KYC verified customer. It’s important that you apply for KYC verification so that you can have higher credit and spending limits. Else for any cash backs above Rs.10,000, you will have to wait till the next month.
2. Combine with Coupons and Save Double
Cash backs can be combined with other discount coupons and help you save double. Usually , discount coupons can be applied only once during a purchase but when you combine it with cash backs you save a lot more than you anticipate. It’s also important to remember to avail immediate cash backs rather than go for reward points on your next purchase which will force you to shop only from that particular site.
3. Check out the terms
It goes without saying that most cash backs come with terms and conditions. You would get cash backs for only up to a certain amount. For e.g. when you book tickets on IRCTC through Paytm wallet, you have a 5% cashback offer running. However, the terms specify that you can avail a maximum discount of Rs.40 only.
Another important point to note is that you get cash backs only when you spend above a specific amount. For e.g. if you shop for groceries above Rs.1000, you get Rs.100 cashback. So keep a watch if you are going to spend the required amount when you are looking at cash back offers.
4. Cash backs – open, semi-closed or closed wallets
There are three types of wallets right now.
Closed- A closed wallet is issued by a company to a consumer for buying goods and services exclusively from that company. On cash backs, you can only avail the services or products from that particular company. E.g. Yatra provides cash backs in the form of eCash which can be used for booking tickets the next time only through Yatra.com.
Semi-closed- A semi-closed wallet can be used to buy goods and services, including financial services, at certain specified merchant locations which have a contract with the issuer. Semi-closed wallets do not permit cash withdrawal or redemption by the holder. E.g. Mobikwik is a semi-closed wallet whose cashback offers can be used on subsequent purchases from other sites tied-up with Mobikwik. You can cashback on dth recharge, cashback on electricity bill payments etc.
Open Wallets- Open wallets can be used for the purchase of goods and services, including financial services and also cash withdrawal at ATMs. E.g. M-Pesa by Vodafone. They can be jointly launched only with a bank.
So based on the type of wallet, you can avail the cash backs and use them to your benefit.
5. 100% cashbacks- keep a watch
The lure of 100% cashbacks is irresistible. Wallets know that offer 100% cash backs periodically will get them customers like never before. Paytm earlier gave cashback offers up to 100 % in different categories. They initially offered it for fashion, the sports and kids’ toys, followed by kitchen-ware and electronics.
Sites like Freecharge, Mobikwik also come up with occasional 100% cashback on recharges.
6. Cashback Credit cards – the latest fad
Much has been spoken about banks coming up with new ideas like cashback credit cards. Credit card sponsors are now offering credit cards featuring cash back and other incentives to get your business. Choose the right cashback credit card based on your spending. For instance, if you spend more in departmental stores and supermarkets, opt for a card like the Manhattan Platinum Credit Card. This card from Standard Chartered Bank gives cash backs on Reliance Fresh, Big Bazaar, More etc.
Using a cash-back card can be very good indeed, provided that you use the card smartly within its limitations.
So make the most of cashback offers and benefit the maximum when you make purchases. You can check out all the amazing cashback offers on Mobikwik on a wide range of purchases.