Is ShopBack Having a Serious Cash Flow Issue?

AsukaST on 27/03/2025 - 13:27
Last edited 27/03/2025 - 13:29

I do think Shopback is having a cash flow problem.
They first introduced a monthly "draw" last year, trying to obtain $300/member cash loan with 0% interest rate. Not sure if anyone has actually win the prize.

Then they pause all cashback withdrawal for "a week" from 25/3. Claiming it's a "system maintenance", yeah, for the whole week in the AI age of 2025, and at the end of a quarter when it's the deadline for them to pay their creditors.
https://www.ozbargain.com.au/node/898934

Now they increased the monthly draw to $1200/member so they can obtain 4 times more short term interest free cash loan.
https://www.ozbargain.com.au/node/899427

Everything just sounds so wrong to me. Looks like some moves from a company that may collapse anytime.

I wouldn't touch them at least until after Easter, no matter how attractive their offer is.

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Comments

  • Jimothy Wongingtons on 27/03/2025 - 13:36

    They first introduced a monthly "draw" last year, trying to obtain $300/member cash loan with 0% interest rate.

    …WHAT??

    i havent used shopback for maybe a year now - the offers mainly are junk/ not worth the dramas - other than like the 98-100% cashback on vpn subs.

    Am i reading that right that SB wanted to try and get $300 off each member?
    That being said sometimes some posts from the facebook shopback group highlight in my feed - and its always just diehard fans lol

    I'd argue when it was confirmed OG GYB was taken over it was already landslide mode - and that would be years ago now.

    • AsukaST on 27/03/2025 - 13:39
      +6

      No. You enter a draw by paying them, with 100% cashback.
      But it takes a few days for cashback to reach your account so they can gain a short term interest free cash loan. And they hope people forget to withdraw cashback immediately after it's paid.

      • Jimothy Wongingtons on 27/03/2025 - 13:40
        +2

        that sounds like a bloody horrible idea with shopback's track record lol but i bet they still had some punters

        i reckon get out now while you can!

  • DingoBilly on 27/03/2025 - 14:02
    +3

    I actually had a similar thought and concern. I am all for SB and prefer it for cashback but this points to some concerns.

    It is a bit worrying. The $300 was already a bit of a step up. $1200 sounds like they're really struggling for cash. May want to be careful putting that much in. Although to be fair, it's (profanity) fantastic for hitting minimum credit card spend.

    To be fair I've been doing the $300 draws and haven't had any issues withdrawing. I'm up to $2500 cashback from SB atm so it has been good so far.

    • machej on 30/03/2025 - 16:38

      Yep, been doing them to rack up the points/min spends. My lifetime "earnings" now has $27.7k but most of that isn't actual earnings.

      • Neoika on 30/03/2025 - 17:27

        I am a bit surprised that SB has taken no action after you bought 3000+ the iconic vouchers. According to the following giveaways, it encourages users to do it like this.

        Since SB only allows $300 cash withdrawal per 24hrs, it would take a good 50+ consecutive days to withdraw all money.

        • machej on 30/03/2025 - 19:02

          I acted as per their T&Cs permit so I don't see an issue with that. Did have to withdrawal in $300 lots which was annoying but at the same time I got a fair few points out of it. I don't think it's a sustainable business model and there are too many issues of things not tracking to make it worth long term. Not to mention the competition they have with CR and TCB. TCB is great and now has Tightarse working there.

          • Grazz989 on 30/03/2025 - 19:18

            @machej: What exactly did you do?

            Why would you buy 1000's of vouchers and then give them away?

            • Neoika on 30/03/2025 - 20:33

              @Grazz989: This voucher was priced at $5 for 100% cashback, just like the current giveaway vouchers.

              Giveaway offer can also be used to complete any bank monthly/sign up purchase requirement like ING 5 times, with no actual spending. For this kind of purpose, the lot of $1 (now 4 times) is welcome.

              • machej on 30/03/2025 - 21:03

                @Neoika: Yep, for me it was mostly about maximising points earn.

  • Halfpea on 27/03/2025 - 15:11

    My last payout was not in my bank 9 days later. I had to email them and magically, the next day it was in my bank.

    Every single cashback that is over a piddly small amount in the last 8 months has either not tracked properly or, has been rejected.

    In each case I have had to open disputes and email multiple times.

    I still have one from Big W that has not been paid and I have one from Expedia for a trip next week that tracked at an amount a lot less then the 15% it was meant to have tracked at.

    Each time they pay me its apparently "goodwill" despite the small amounts always tracking on the same phone or PC. I do not use them anymore. Deleted the app and just check online to see if I have been paid.

    Something stinks there, they used to be quite good.

    • tenpercent on 27/03/2025 - 16:54

      They just nicked your $9?

      Does the Topcashback rep (someone please @ them) want to confirm this is not standard policy? I'll stop using them if is standard practice for them.

      • Puglife on 27/03/2025 - 17:04
        +1

        This is standard T&Cs with all things including Flybuys, Woolworths Rewards etc. If you don't use it for a year it is null and void.
        If people don't know this, that is on them. A true Ozbargainer would never make such a mistake…

        All you have to do is make a transaction of any denomination and the year begins again. This guy just made one purchase and forgot about it and it expired.
        My favourite saying : you snooze, you lose 👍

        • tenpercent on 27/03/2025 - 17:19

          you snooze, you get stuff nicked

          FTFY

        • tightarse on 27/03/2025 - 23:36
          +5

          Hi @wots @tenpercent @Puglife @DoctorCalculon

          I was messaged to respond in this thread as the TopCashback rep. Please note your information is incorrect (or you’re referring to the incorrect cashback publisher).

          TopCashback does not have a minimum withdrawal amount. You can withdraw as little as $0.01 with no issues.

          Secondly, our ‘dormancy’ policy spans two years (not one). All that’s required to keep your account buoyant is a single login every two year. Worst case, if you’ve failed to do this, simply contact us and we’ll reset your account.

          Hope this alleviates any concerns. Cheers.

  • FSTB on 27/03/2025 - 21:29

    They appear to have a lot of jobs advertised? Including exec roles in Australia.
    https://corporate.shopback.com/careers#job-section

    • tenpercent on 28/03/2025 - 10:22

      So they're expanding operations.

      • Clear on 28/03/2025 - 18:02

        Not really. They let go a significant portion of their workforce last year.

        • tenpercent on 29/03/2025 - 11:15

          And now they're hiring them back?

          • Clear on 29/03/2025 - 11:58

            @tenpercent: It's not really expansion if you have to replace the mass layoffs and mass resignations.

            • tenpercent on 29/03/2025 - 12:36

              @Clear: Yes.
              But they don't appear to be getting ready for bankruptcy if they're hiring back again.

              • AsukaST on 29/03/2025 - 13:56
                +1

                @tenpercent: Disagree. Many companies still collapse a week after new hiring.

                • tenpercent on 29/03/2025 - 14:01

                  @AsukaST: For example?

                  • AsukaST on 29/03/2025 - 14:55
                    +1

                    @tenpercent: You may keep an eye on your local retail shops or restaurants, it's very common.

                    Another example, jeanswest was still hiring store managers in mid-Jan 2025, 2 months before its announcement.
                    https://web.archive.org/web/20250113204524/https://www.seek.…

                    • tenpercent on 29/03/2025 - 15:07
                      -8

                      @AsukaST: You're very invested in this judging by your wayback machine research.

                      • AsukaST on 29/03/2025 - 15:17
                        +2

                        @tenpercent: It's just common sense.
                        You have to show your creditors that you are running your business as usual, even when you are in deep cash flow trouble.
                        Otherwise your business will collapse within 24 hours, just like the Silicon Bank.

                        • tenpercent on 29/03/2025 - 15:19
                          -4

                          @AsukaST:

                          just like Silicon Bank

                          They basically had a bank run by having too many eggs in one depositor's basket. Kinda different scenario.

  • cyan00FFFF on 29/03/2025 - 15:13
    +1

    The monthly draws aren't really a cash loan for them anymore, it seems lately gift card cashback (which includes the giveaway) get confirmed within minutes. Except during this maintenance period, you can request cashout straight away, and for me it's always paid within days.

    • machej on 30/03/2025 - 16:34

      I don't quite get the point of them other than increasing engagement. Must cost them a % on all the card fees.

  • Jollystacker on 30/03/2025 - 18:46

    cashback sites seem to come and go, CR fizzled out, SB might be doing the same and many other no names have already bitten the dust

  • wau2 on 30/03/2025 - 20:20

    Any spare cash I have in SB I just buy amazon gift cards to top up my amazon account. Rarely do I have more than $5

    • mantra on 01/04/2025 - 05:40

      i just cancelled shopback plus before the new month because they removed amazon gift cards i'd have nothing to spend the $5/mth credit on

  • d3ft on 30/03/2025 - 21:23
    -1

    Cash Rewards is basically owned by ANZ and Westpac has a huge equity interest in ShopBack. None of these guys are running out of money.

    Honestly mods, this thread is just drivel and should be locked.

    • uzr89p9jd on 30/03/2025 - 21:35
      +2

      Well, a subsidiary hemorrhaging money doesn't mean that the parent company will bail them out

  • NonSense on 30/03/2025 - 21:33

    Hang on. Shopback is owned by Westpac now.

    Surely it is peanuts for Westpac group to fund it.

    Unless Westpac are in trouble too?

    • AsukaST on 30/03/2025 - 21:45
      +2

      No, SB is not owned by Westpac.
      Westpac invested $30 million USD into SB in its Series F extension round back in 2022, along with Temasek and others.
      If sb is no longer profitable, it's just mean Westpac made a loss in its investment, that's it.
      It's absolutely possible for sb to collapse if its investors see no future in it, or at least leaving the Australian market.

      • NonSense on 30/03/2025 - 22:10

        Ah make sense!

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