What is cashback

What is cashback? How do UK customers gain benefit from it?

In the United Kingdom, many stores have a tradition of discount, which means a reduction in the price. To achieve profit goal after each sales season they usually reduce by one third, half or even for clearing the inventory they are willing to discount 70-90%. But the most effective way to attract customers is probably cashback, which can help you buy cheap items at any time and no need to wait until the Sale season. This culture was originally from the United States but began to gradually enter the UK. Many types of cameras advertised after buying customers immediately get back 50 to 100 pounds, which is equivalent to 20-30% discount. Today, let read the following article of Viknews.com to know what is cashback and how customers in the United Kingdom gain benefit from it.

What is cashback?

What is cashback
What is cashback?

Cashback is a credit form of the bank for customers who use credit cards when they make purchases and get pay back an amount of money for their credit card based on payment value. Cashback can be considered as a direct discount on products or discounting the purchase bill, etc., increasing the consumption of credit card customers. Customers not only have received promotions when paying via credit card but also have been refunded a sum of money from the system.

The refunded amount is calculated on the value of the product of all transactions pay by cash or pay by card. This percentage may be high or low depending on the type of service you use to pay. Customers can fully use the refunded money to shop for subsequent visits or withdraw cash via bank account. However, customers should not withdraw cash unless necessary urgently, as this is a form of bank that discourages use and will be subject to a high cash withdrawal fee.

Why do UK stores likely to provide cashback services?

Famous brands in UK likely to use cashback services in order to not bring down the price of goods, which will affect the consumption of other products. Some firms also consider that buyers will not remember the procedure to get money back. In one case, a US company earned an additional $ 5 million because half of the customers were not interested in getting money back. Some companies have difficult procedures in place to take advantage of the shoe-box effect, making customers forget to return the money on time.

What is cashback
Uk stores likely to use cashback services in order to not bring down the price of goods

Cashback is also a way to take advantage of the capital because the refund is usually pay after a few weeks, months or even up to years. You can go to the many online website in the UK such as quidco.com and topcashback.co.uk to buy goods and get cash-back from thousands of stores and retail networks. For example: buying an iPhone would be cashback 100 pounds, buy new types of smart phones would be cashback 50 pounds.

How do customers in the United Kingdom gain benefit from it?

Smartphone companies are the leading experts in the cash-back service in the UK. The most popular company is mobiles.co.uk, a subsidiary of the Carphone Warehouse distribution system. Its cash-back procedure is: if customer buy 24-month line subscription they will get 9-month money back, but the buyer has to remember to return the money 5 times at 5 different times as prescribed.

What is cashback
Cashback is a credit form of the bank for customers who use credit cards.

To explain clearly about the benefit that cashback service bring to customers, you should read the following example of the Nokia N8 smartphone: this is a mobile phone with a genuine non-unlocked (sim-free) phone at £ 380. But with £ 350-360, you can buy the device at Carphone Warehouse store with 10 pay as you go recharge tables. Although you have to choose a phone network to recharge but the device is not locked and there is no additional cost to unlock the phone when switching to another network.

If you buy a cashback machine online like Quidco, it will be refunded 50 more, which means the actual amount must be spent only about 300 pounds only. But this price is still higher if purchased via eBay, only 280-290 pounds. Even so, it is only the price of the phone, not yet charged for calling and especially Internet access. Many phone networks offer subscription services, such as signing contracts for 2 consecutive years, 20 pounds per month for a few hundred free call minutes, thousands of free messages and several hundred Mbytes of network access charge with the phone for free.

What is cashback
Cashback can be considered as a direct discount on products.

This is how UK customers gain benefit from cashback service. Share this post to your friends if you found it helpful. Follow Share category to read more interesting article.

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