WHEN James Hutchison started using a cashback website less than two years ago he didn’t think it would turn into such a useful earner.
He was always sceptical of the supposedly time-consuming sites that he thought offered little reward in return.
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But the now 47-year-old decided to take the plunge and signed up to TopCashback 18 months ago, which has over 23 million global members.
The website, like other cashback sites, pays users to click through to external websites and buy products and services.
James, a personal stylist from Cumbria, started using the platform with his wife Carla, 47, during lockdown and hasn’t stopped since, earning around £1,500 back.
He said: “It’s a no-brainer. If you were going to spend the money anyway, why not get the best deal you can spending it?
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“It’s not like you’re going out of your way to buy something you weren’t going to buy.”
He added: “We signed up and at the time I thought ‘I don’t really spend a lot of money online’ so didn’t think we would make a lot at all.
“However, it’s been interesting to see that money does mount up, especially if you leave it in there.
“If somebody said to you in a restaurant you would get £15 for spending £100 on a meal you would take it.”
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James earns cashback on a range of products and services, including food, breakdown cover and hotel stays.
He recently switched breakdown cover from the AA to RAC which set him back £117 for a year and earned £49 cashback through the site.
But he’s used it to book car parking at Manchester Airport and get 20% back too – money he “hates spending so cashback is great”.
He’s earned himself money back ordering food off JustEat and Domino’s too and even used the website to buy himself a printer.
The £1,500 James has earned in the last 18 months has been put to good use.
He has spent around £500 of it on Christmas presents, and hotels and flights for business and leisure trips.
The remaining £1,000 will go on Christmas presents this year but also prove a useful backup in case he needs to pay out for any emergencies.
He explained: “It’s free money we don’t really acknowledge and it’s nice to have something there.
“[It’s like an] emergency fund, anything that gives you that cushion like cashback from credit cards, it’s all the same thing.
“As long as you do it responsibly and you are buying things you would normally buy, it’s extra free money.”
How does TopCashback work?
TopCashback works by advertising retailer’s products, services and offers on its website which customers can click through to.
Retailers then give TopCashback money for redirecting consumers through to their websites who earn their share of the cash.
Shoppers can earn cashback on everything from airport car parking, home insurance, mobile phone devices and homeware brands.
You can also get money back on fast food, supermarket shopping and via fashion retailers such as ASOS and George at Asda.
The website is free to join, unless you sign up to a Plus account, which offers members access to better deals, and more of them.
A Plus account charges you £5 of your annual cashback earnings, but it can be worth it if you are looking to spend a lot.
James said as he has earned much from the site, a £5 deduction is a “relatively small amount of money” to fork out.
Once you’ve made a purchase and earned your cashback, it will usually appear on the “Earnings” page on the TopCashback website within seven days.
However, you usually won’t be able to actually withdraw it for around two to three months.
James explained: “It’s not a quick process. A lot of the time the cashback can take 60 or 90 days to come in.
“It’s more like a long-term savings thing than a quick cash option.”
You can withdraw any cashback as vouchers to spend on offers on the TopCashback website.
You can also have the money transferred into your bank account or PayPal account.
Meanwhile, you can redeem the cash as a gift card, with bonuses of up to 20% available on some.
You can pick up gift cards to use at a number of retailers and companies including Just Eat, Amazon, Google Play and Virgin ExperienceDays.
James’ top tips for TopCashback
While James branded TopCashback a no-brainer, he warned there are some drawbacks.
Just because you see a deal on the website, that doesn’t mean you’re getting the best value for money, even with a cashback option.
For example, sometimes websites such as Trivago or Booking.com can offer you a cheaper price on a hotel than one advertised through TopCashback.
James explained: “Don’t assume that TopCashback is going to make it the best value.
“Shop around, as sometimes other websites are cheaper.”
Next, James said it’s not worth spending money through TopCashback unless you were going to anyway.
Plus, he said only withdraw any cashback earned when you actually need it.
He said: “Me and Carla tend to bank it and have it sat there for an emergency or something special.
“We might save it for a really nice meal. It’s not accounted for and we don’t have to feel guilty.”
Plus, make sure you keep on top of any cashback you should have coming in as sometimes retailers will delay in paying you, or might not at all.
You can contact TopCashback via its website to chase any unmade payments.
James explained: “Sometimes the vendors won’t pay the cashback or refuse the cashback so you think you’re getting it and it doesn’t come in.
“If that happens to you, contact them (TopCashback) via their customer service page and get in touch.
“You can get in touch via their app as well.”
How else to earn cashback
TopCashback isn’t the only website where you can earn money back on purchases.
There are a few other sites worth trying, including Quidco and KidStart.
Basic membership for Quidco is free, or you can upgrade for £1 a month.
The £1 package offers up to 10% extra cashback, higher bonuses and access to the website ad-free.
Like TopCashback, Quidco gives you the option to withdraw any money earned direct to your bank account.
But you can also boost your cashback by up to 25% if converting it into a gift card.
KidStart is ideal if you’ve got kids, or know someone with them, although it does offer deals for adults too.
Membership is free and offers cashback with 2,300 retailers and brands, including Apple and John Lewis.
However, it doesn’t always offer the most competitive rates, so make sure you check any offers against Quidco and TopCashback before making any purchases.
You can also get cashback credit cards that reward you for shopping or making purchases.
The amount of cashback you get is usually calculated based on a percentage of what you spend on the card monthly or annually.
Some debit cards let you earn cashback too.
TSB’s Spend and Save current account, for example, gives you £5 cashback for the first six months when making 20 debit card payments each calendar month.
Some retailers also offer customers rewards credit cards for purchases made at their stores or online.
For example, Asda’s Money Credit Card offers customers points when making purchases which can be converted into discount vouchers for future shops.
The John Lewis Credit Card offers customers five points per £4 spent at John Lewis or Waitrose and one point per £4 spent elsewhere.
These points can then be converted into vouchers to be used at John Lewis or Waitrose.
Always remember with credit cards that it’s cheaper in the long-term to pay off any outstanding debt each month before any interest has time to build up.
You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.
