Cash Back & Voucher Reward Schemes
Cash back and reward schemes sound attractive to consumers. Who doesn’t want to get cash back? And who is going to say no to a reward? But how do the schemes actually work and are there any pitfalls to look out for?
What Are Cash Back Schemes?Cash back schemes really do what they say on the tin. When you purchase something you receive a cash back incentive. In almost every retail sector there are cash back schemes on offer. From cars to mobile phones, and credit cards to holidays. The consumer is encouraged to use the provider more in an attempt to earn more cash back and rewards.
They are usually above board but occasionally you can be enticed into a deal you don’t really want to take on just to receive the cash back or rewards. In other words the consequences of the deal are not worth the cash back and rewards.
Examples of Cash Back and Reward SchemesThere are various types of cash back and reward schemes on offer.
Mobile Phone SchemesOne of the most common cash back and rewards schemes on offer surrounds mobile phones. Often when you come to renew your mobile phone deal or when you walk into a mobile phone shop to buy a new phone you will be offered a range of deals. Many of these deals surround contracts. You may not be keen on taking out a phone contract but you’ll be told that by doing so you’ll receive a cash back incentive. You are therefore encouraged to take out the deal but when you think about it the cash back may not always be enough to compensate you for the money you will now have to pay out on a weekly basis.
In a recent case a mobile phone provider offered a cash back incentive to consumers who took on a 12 or 18 month contract. The provider claimed the cash back would cover most of the cost of the line rental. However this was not the case and many consumers were left out of pocket.
Be sure to read all the small print before signing a contract.