Article in today's SMH.com.au , …
source:
https://www.smh.com.au/money/saving/cashback-or-catch-why-mo…
Cashback or Catch? Why Money-back Schemes Have Their Downfalls
Here are a few things to keep in mind if you intend to use cashback services this Christmas:
Cash back, eventually: Graham Cooke, head of consumer research at Finder, says there are some “admittedly minor” downsides of using these services, namely the lengthy wait until you can actually cash in your cashback. “In some instances you can wait up to 90 days to receive your money back – so it’s not as convenient as an immediate discount,” he says. Couple this with the slow rate of attrition – as you’re only picking up a few dollars at a time – and you can be left waiting a long time for very little money.
Not such a good deal: Cooke also warns the allure of cash back can obfuscate what isn’t actually a particularly good deal in the first place. “Having a 20 per cent cashback offer at a particular store doesn’t necessarily mean that shopping there will give you the best bang for buck,” he says. “Getting $2 back when you might have saved $20 elsewhere is a false economy.” As always, it pays to shop around and consider all discounts available before you pull the trigger on a big purchase.
Privacy concerns: Cashback services, shockingly, aren’t doing this out of the goodness of their own heart. They receive commissions from merchants when sales are made through their platforms, and they also receive buckets of valuable data from people who use the services. Policy adviser at consumer advocacy group CHOICE Rafi Alam says this collection of data is something to keep in mind when you sign up for one of these services. “They collect a lot of data on your consumer behaviour, and aren’t always super transparent about how they use it,” he says. “You’re not just giving up your name and phone number, and address, but also technical data that can be used to identify you.”
Don’t overspend: Alam also warns that cashback services can sometimes mean you’ll spend more than you intended, as you can feel like you need to buy more so you can hit the minimum withdrawal amount. He likens it to the “trap” of online retailers offering free shipping once you spend over a certain amount.
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
That goes without saying
However, if you have the best price or near it, and you combine it with say 15% cashback, it makes a big difference. That's how OzBargainers work.
PS: Need to wait 120days, no problems, x2/3, e.g. 15% becomes 10%, still worthwhile.