Debit cards have long been convenient ways to pay for goods and services, provided they are managed well. However, beyond the convenience of cashless transactions, debit cards can also offer the opportunity to earn money back through cashback rewards. This article explores cashback, how to make the most of it in the UK, and the offerings from Suits Me®.

What is Cashback?

Cashback is a payment card benefit that allows you to earn money back when you shop with certain retailers. Initially a feature of credit cards, cashback is now also available with debit cards and prepaid cards like those offered by Suits Me®. The amount earned typically represents a percentage of the amount spent – for instance, spending £50 with a 5% cashback reward would return £2.50.

Cashback rewards vary depending on the card provider and its partner retailers. This could mean earning money back on various categories such as groceries, fuel, clothing, or even holidays. Consequently, it is beneficial to compare cashback reward programs to determine which offers the most value based on your spending habits.

Traditional Cashback at Tills

It’s important to distinguish cashback rewards from traditional cashback at tills. Traditional cashback allows debit card users to withdraw physical cash at a till when making a purchase. This form of cashback provides convenience similar to using an ATM but does not offer any monetary reward or incentive.

Types of Cashback

Different providers offer various types of cashback deals, making shopping for options worthwhile. Some providers offer a flat percentage cashback on all purchases, usually between 1% and 3%. Others might provide higher cashback rates for spending at specific retailers or on certain categories of products.

For example, one provider might offer increased cashback for online shopping, while another might offer higher rates for purchases at major supermarket chains or well-known clothing stores. Additionally, some programs offer tiered rewards based on spending amounts, such as 1% for under £200 and 3% for over £500.

How Does Cashback Work?

Cashback programs are designed to help you maximize your money with your favorite or most frequently used retailers. The general principle is that the more you spend, the more you earn back. These rewards are made possible through partnerships between card providers and retailers. When you make a purchase, the retailer pays a percentage back to the card company, which then passes part or all of these earnings on to you. 

This creates a mutually beneficial situation: customers earn extra money on purchases, while card providers and retailers attract more customers through their partnership. However, it is important to note that the percentage returned can vary and may be subject to conditions or limits set by the card provider.

Determining if a Cashback Card is Right for You

Choosing a cashback card depends on your personal shopping habits. Regularly using a debit card for purchases can be a good way to earn extra cash. An attractive cashback reward rate might entice you even if you’re not currently using a bank card. Consider whether the cashback rewards align with your financial management strategy and spending habits.

Considerations When Using Cashback Cards

To benefit from cashback rewards on credit cards, it is essential to pay off the balance in full before interest is added. Otherwise, the interest charges can outweigh the cashback rewards. There might be monthly or annual fees for debit cards with cashback rewards, which should be factored into the overall benefit from the cashback earned.

It’s also crucial to avoid increasing your spending solely to earn cashback rewards. The goal is to maximize rewards on purchases you would make anyway, not to encourage unnecessary spending.

Cashback Rewards with Suits Me®

Suits Me® offers straightforward and effective cashback rewards, providing a smart way to earn while you spend. By opening a Suits Me® prepaid account, you receive a prepaid Mastercard® debit card within three to five working days, allowing you to start saving while you shop. No credit checks are required for these cards, making Suits Me® cashback rewards more accessible than those linked to traditional bank accounts.

Suits Me® Cashback Partners

Suits Me® partners with a wide range of well-known high-street and online brands, ensuring your shopping needs are covered. Some of the notable partners include:

• Argos and JoJo Maman Bébé for household goods and baby products 
• Asda, Sainsbury’s, and Laithwaite’s Wine for groceries and beverages 
• B&Q, Carpetright, and Storey Carpets for home improvement and flooring 
• Clarks, Footlocker, and New Look for footwear and fashion 
• Ernest Jones, Goldsmiths, and H.Samuel for jewelry and gifts 
• Boardman and Halfords for cycling and automotive needs 
• Pizza Express and Yo! Sushi for dining out 
• Inspire Travel and Virgin Experience Days for travel and experiences 

Customers can log in to their online rewards account through the Suits Me® online platform to check all current partners and offers.

Maximizing Cashback Rewards

To make the most of cashback rewards, it’s essential to be strategic about where and how you spend your money. Here are some tips to help you maximize your earnings:

1. Identify Regular Purchases: Look at your regular spending patterns and identify the categories where you spend the most. Focus on cashback programs that offer higher rewards for these categories. 
2. Combine Cashback Offers: Consider combining cashback offers from different cards or programs. For example, if you have multiple cards, use the one that offers the highest cashback for specific purchases. 
3. Keep Track of Promotions: Card providers often have limited-time promotions with higher cashback rates. Stay informed about these offers and take advantage of them when they are available. 
4. Plan Large Purchases: If you’re planning a large purchase, check if your card offers increased cashback for higher spending amounts or specific retailers. Timing your purchase with a promotional offer can yield significant rewards. 
5. Use Direct Debit for Bills: Many cashback cards offer rewards for paying bills via direct debit. Setting up direct debits for your regular bills can help you earn cashback without additional effort. 
6. Monitor Fees: Be aware of any fees associated with your cashback card and factor them into your overall earnings. Ensure that the cashback rewards outweigh any costs. 

Cashback is a powerful financial tool that can provide benefits when used wisely. By understanding how cashback programs work and choosing the right card for your spending habits, you can manage your earnings and make your money work harder for you. Suits Me® offers accessible and straightforward cashback rewards, enabling customers to earn money back on their purchases. With a wide range of partner retailers and no credit check required, Suits Me® provides an inclusive solution for those seeking cashback benefits. Start exploring your cashback options today and see how much you can save while you spend.

Published by: Nelly Chavez