Do you want to receive cashback on your phone contract? Pay attention – not all cashback mobile phone deals are going to save you money, despite their attractive façade.
We’ve provided all the details below about cashback offers to help you understand how they work, as well as the ways to avoid them and where to find the best deals.
What’s cashback?
Cashback deals are a common sales strategy used by retailers to attract customers. They promise cash rebates once a customer signs up for a mobile phone contract.
They are undoubtedly attractive incentives, especially when you spend a lot on a new smartphone. Cashback offers aren’t always as helpful for customers as they seem, despite their sparkling appearance.
It is essential to learn about the workings of deals before you sign.
Here’s all you need to know about cashback for phone contracts
- After you have agreed to a mobile deal with cashback, the retailer will reimburse you a certain amount. This usually happens after a few months and in instalments at specific points.
- Let’s say you agree to a contract costing PS30 per month over 12 months. You also get PS130 cashback. This will reduce the cost of your total contract from PS360 to PS260 (30×12 – 130).
- Cashback deals are generally only available to high-end tariffs with a lot of minutes and texts or data. To claim the cashback, you will usually need to send a copy your monthly bill to the retailer.
Cashback
Two types of cashback deals are common in companies:
- Cashback automatically
To claim money from the retailer, you only need to use automatic cashback.
In most cases, the money will arrive in your bank account or a check in the mail within six months. The process is quite simple.
Sometimes, the retailer won’t even ask for your mobile phone bill. Other retailers may even offer you additional savings and pay you upfront.
Be aware that there are caveats.
The retailer may suspend any rebates if you fail to pay a bill or miss a payment. Make sure that you pay your bills on time. - Redemption cashback
Here is where things can get a little complicated.
You will need to send a copy of your mobile phone statements, just like with some automatic cashback offers, to receive your money.
The retailer will often ask you for the following information when you send them a bill:- Name
- Address at home
- Mobile number
- Current tariff price
- Bill date
- However, redemption cashback is not available in the same way as automatic cashback. The terms are much more restrictive than those for automatic cashback.
This type of offer is very time-sensitive. A missed payment could lead to the retailer withholding future rebates. This could leave you locked in a contract that you don’t want or need.
What are the things to look for when I claim cash back?
Consumers don’t have many rights when it comes time to claim cashback. Most retailers will have lengthy terms and conditions that you must read before you can see a penny.
Here are some things to consider before you agree to a cashback offer:
- Pay attention to the fine print. To avoid getting the wool pulled up your eyes, make sure you read all of the fine print.
- You should keep your bills handy – you can refer to them later if you need them.
- Use recorded delivery – We also recommend using recorded delivery to send your paper bills directly to the retailer. If the company claims that they haven’t received a payment, you will prove that you sent it.
- You can set reminders, which may seem obvious but are still very important. You can keep a reminder in your phone to remind you when your next payment due. It’s worth noting when your money arrives from the retailer.
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Remember, the NIX magic number is zero!! How close can you get? Come in and see.
Recycle your old phone with NIX and sign-up to our Premium Membership for even better prices and saving at NIX.
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