How Instant Cashback Works + Cashback Stacking
What Is Instant Cashback?
Instant cashback is a simple yet powerful tool for savvy shoppers. It works by offering you a percentage of your purchase back in cash, right after you've made the transaction. This is facilitated by purchasing gift cards through various cashback providers. For instance, several companies in the UK allow you to buy gift cards that come with an instant cashback incentive. This means that you can spend the gift card online or in-store and receive an instant saving on your purchase.
At the time of writing, providers such as Widilo and Jam Doughnut are offering enticing cashback rates, such as 6% off at Marks & Spencer (M&S) and 4.5% at Asda. The process is straightforward: you purchase a gift card through the provider's platform, and they give you the code immediately. You can then use this code either online or in-store, depending on where the company accepts it. The provider will specify whether the gift card is valid for online, in-store purchases, or both.
Here are all the current instant cashback providers we recommend. It’s worth considering the sign-up bonus they offer in conjunction with their cashback rates:
What Happens If I Don't Spend All of My Balance?
One of the great advantages of using gift cards for instant cashback is flexibility. If you don't spend all of your gift card balance in one go, there's no need to worry. You can use the remaining balance next time or simply leave it on the account to use at a later date. Most gift cards come with an expiration date that is years into the future, giving you plenty of time to use your balance.
Do I Actually Get the Cashback Instantly?
Yes, the cashback is typically added to your account immediately after your purchase. Depending on the provider you're using, there might be a minimum withdrawal amount, usually between £5 and £15. However, reaching this threshold won't take long if you use instant cashback for all your spending. Once you've accumulated enough cashback, you can withdraw it to your bank account or use it for future purchases.
How Can I Use Cashback Stacking to Save Further?
Cashback stacking is a strategy where you combine multiple cashback offers to maximise your savings. Essentially, it's about earning cashback on top of cashback. The best way to do this when using instant cashback is to purchase your gift cards with a cashback credit or debit card. This way, you earn cashback both from the gift card provider and from your bank or card issuer.
Let’s look at an example to illustrate this. Suppose you want to spend £100 at M&S. You decide to use the enhanced rate of 6% cashback through the provider Widilo, which means you'll receive £6 back into your Widilo account. But you can save even more by purchasing this £100 gift card through Zilch, a service that offers 0.5% cashback on all purchases. This adds an additional £0.50 to your savings. In total, you’ll have saved £6.50 with very little extra effort.
Zilch automatically pulls the funds from your current account, and you can purchase the gift card through the cashback provider's app using a method like Apple Pay. Many other providers offer similar cashback cards, so it's worth exploring your options.
Here’s a list of debit card providers who pay cashback on your spend:
| Provider | Rate | Max Cashback (Monthly) | Qualifying Purchases | Fees (Monthly) | Pay In (Monthly) | Sign Up |
| Chase | 1% | £15 | Most | £0 | £1500 | Get started |
| Santander Edge | 1% | £10 | Bills/supermarket/travel | £3 | £500 | Get started |
| Trading 212 | 1.5% | £20 | Most | £0 | £0 | Get started |
| *Zilch | 0.5-2% | No limit | Most | £0 | £0 | Get started |
*Using "Zilch Pay Now" mimics a debit card transaction because the payment is immediate, but it's technically still routed through Zilch's service. It's not the same as using a traditional debit card directly from your bank, although you will receive instant cashback up to 2% with a vast number of online/in-store retailers!
How Should I Purchase Gift Cards?
When it comes to purchasing gift cards for instant cashback, most of the time, you can use any payment method you like. To maximise your savings, as mentioned earlier, consider using a cashback card. However, keep in mind that some platforms like Jam Doughnut might offer lower cashback rates if you use certain payment methods, such as Apple Pay. In these cases, you can choose between a slightly lower cashback rate with a more convenient payment method or a higher rate with a traditional bank payment.
If you have any further questions about the process of instant cashback, feel free to send us an email—we'll be happy to update this guide with more tips and tricks!
