The Ultimate Guide to Cashback in the UK: Using Multiple Methods

Cashback is one of the simplest and most effective ways to save money while shopping, whether online or in-store. It's essentially a way to get a percentage of your money back on purchases, and by using multiple methods at once, you can maximise your savings. In this guide, we'll walk you through what cashback is, the different types of cashback, and how to combine them for the best results.

What is Cashback?

Cashback is a reward you receive when you buy something. Typically, this comes as a percentage of your purchase that is paid back to you after completing a transaction. You can think of it as a small rebate that either gets credited to your account or sent to you as cash.

There are two main types of cashback:

1. Traditional Cashback (Browser-Based)

The traditional cashback method works through cashback websites like Top Cashback, Quidco, and Rakuten. Here's how it works:

• You visit a cashback website and search for the retailer you want to shop with.

• After clicking through from the cashback site to the retailer’s site, your purchase is tracked.

• After completing the transaction, the cashback site receives a commission from the retailer and passes part of it to you.

While this can be a great way to save, it can take a few days or even months for your cashback to be confirmed and paid out, depending on the retailer and the cashback platform.

2. Instant Cashback (Pre-Paid Gift Cards)

The newer, more immediate way to earn cashback is through instant cashback gift cards. With this method, you purchase a gift card through a cashback platform and receive instant cashback. You can use these gift cards to pay for goods either online or in-store.

Platforms such as Jam Doughnut, Tuck, and Widilo allow you to buy pre-paid gift cards for a range of retailers, offering cashback immediately at the point of purchase.

Why do companies offer cashback?

Retailers partner with cashback platforms to divert traffic to their sites and incentivise purchases. In the case of pre-paid gift cards, brands get the cash upfront, which benefits their cash flow while rewarding customers for buying their products.

How to Use Cashback Methods Simultaneously to Maximise Savings

Now that you know the different types of cashback, here’s how to combine them to save as much money as possible when shopping in the UK.

Step 1: Check for a Student Discount

If you're a student, always check if you can apply a student discount code:

• Online: Enter your student code at checkout for an extra discount.

• In-store: You may need to show a valid student ID, though this can be trickier unless the store specifically allows student discounts in person.

Step 2: Use a Traditional Cashback Site (Online Only)

If you're making an online purchase, visit a traditional cashback provider like Top Cashback, Quidco, NX Rewards, or Rakuten:

• Search for the retailer on the cashback site.

• Compare the cashback rates and any special offers available.

• Click through to the retailer’s website to ensure your purchase is tracked.

Step 3: Pay with a Pre-Paid Gift Card

Once you've found the total amount for your purchase, the next step is to check if the retailer accepts gift cards. If they do:

• Purchase a pre-paid gift card for the exact amount needed (to the nearest pound) using an instant cashback provider.

• Use a cashback debit/credit card (e.g., Trading 212, offering 1.5% cashback up to £20 per month) to buy the gift card for extra cashback on top of the gift card cashback itself.

Tip: You can compare which companies are offering the best gift card rates using our free tool here.

Step 4: Upload Your Receipt for Additional Cashback

After completing your purchase, you can take your savings a step further by uploading your receipt to receipt-scanning platforms for even more cashback:

• Amazon Shopper Panel offers £5 in Amazon credit for submitting 10 receipts per month, essentially giving you 50p per receipt.

Though not all receipt scanning apps are extensively tested, it's an easy way to squeeze a little more value out of every purchase.

Cashback Sign-Up Bonuses

If you’re new to cashback platforms, you can take advantage of sign-up bonuses to boost your savings right from the start. Here’s a list of the best offers currently available:

Traditional Cashback Sites:

• Top Cashback: £10 sign-up bonus

• Quidco: £15 sign-up bonus

• Rakuten: £15 sign-up bonus

• NX Rewards: £16.87 bonus

• Virgin Red: 1000 points for joining

Pre-Paid Gift Card Providers:

• Cheddar: £5 sign-up bonus

• Everup: 10 million coins (redeemable in the app)

• Jam Doughnut: £3 sign-up bonus

• Tuck: £1 sign-up bonus

• Widilo: £5 sign-up bonus

By signing up for these services, you can start earning cashback instantly while also getting a nice bonus to kick off your savings journey.

Example Transaction

1) I want to purchase these Adidas trainers for £90

2) Unidays are offering 15% student discount - £13.50 saving

3) Top Cashback are offering 9% - £8.10 saving

4) Cover your £76.50 bill with a £77 gift card from Everup with 12.5 cashback - £9.62 saving

5) Submit your receipt to the Amazon Shopper Panel - £0.50 bonus

A £90 pair of trainers has cost you £58.28!

Conclusion

By combining traditional cashback methods, instant cashback gift cards, and receipt-scanning apps, you can maximise your savings on every purchase. Cashback offers may seem small, but when used correctly, they can lead to significant savings over time. Start by signing up for the platforms mentioned above and take full advantage of these money-saving strategies!