Everything you need to know about cashback

The shopping rush is about to begin. The first Advent calendars are already on sale and the displays are being prepared. November 24 is Black Friday, the global mega discount day, and after that the Christmas sales finally start. In times of rising healthcare premiums, rents, mortgages and general price increases under the guise of ‘inflation’, many people are looking for ways to improve their budget or save. A method that is becoming increasingly popular in Switzerland is the so-called ‘cashback’. Here you can read what cashback is, what advantages and disadvantages it offers and how you can use it while shopping to save some money.

Cashback is a concept where you get money back when you make purchases. It works in principle such as a bonus programwhere a percentage of the money spent is refunded. The amount credited may vary depending on the provider, the product and the purchase amount.

Cashback programs are offered by retailers, online stores and banks, as well as credit card providers, and have the advantage over other bonus programs the bonus is paid in cash. In Switzerland, depending on the provider, you get approx. 0.25-1% cashback bonus. With a purchase of 100 francs this would be 1 franc as a bonus. In the first few months after joining the program it can be used for a limited time, e.g. B. the first three months or the first year can also be longer, e.g. B. 0.6-1%. Cashback also varies depending on card type, so gold or platinum credit card holders receive more cashback.

The use is relatively simple; You can order a cashback card in just a few steps:

Getting something back when you shop sounds great. As with many financial solutions, cashback has some pros and cons to consider. Here is a non-exhaustive list.

You save money while shopping: Even small percentage points can add up to an interesting total over time, especially if you use the program regularly.

Easy participation: Participating in cashback programs is relatively straight forward; simply registering is often sufficient.

Temptation to make unnecessary purchases: A possible disadvantage of cashback is the temptation to spend more. No matter how you look at it, the reward only comes with one purchase, which means you always have to spend money first to get anything back. Cashback is therefore not suitable as a budget measure.

You need time and patience: It may take some time before your cashback balance is available and you can use it.

Limited acceptance: Not all stores or online retailers offer cashback programs. You may have to compromise on your purchasing choices to benefit from the program. This can also mean that you don’t always get the best options or are tempted to shop where it might be a little more expensive.

You are bound by conditions: Depending on the provider, the program may bind you to conditions, e.g. It may be of little use to you if you get cashback with a credit card, but pay higher costs for the card itself or have other disadvantages, such as poor exchange rates.

Cashback can be a good extra way to save some money while shopping. Here’s what to look for when choosing your provider:

With Cashback you can get a small discount while shopping. It is not a substitute for sound budgetary control. If you use such a program, it is important that you know the conditions exactly and take advantage of the benefits without being tempted to make more expensive purchases or additional purchases.

How do you see it: Do you use cashback? Is it useful or is it used to sell us more expensive credit cards and products we don’t need? I’m curious about your experiences and tips! 😉