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The Ultimate Cashback Guide: Pros, Cons, and Tips

In recent years, the finance and banking industry has undergone a significant transformation with the proliferation of digital technologies, and one of the terms we've started to hear more frequently is 'cashback.' Although cashback has been part of our lives for a long time, it has become more prevalent, especially with the rapid growth of fintech startups.


6 min read

Last Updated: Haz 13, 2024

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Table of contents

How Does the Cashback System Work?

What Are the Advantages and Disadvantages of Cashback?

Do Cashback Rewards Have an Expiration Date?

Is Cashback More Advantageous, Or Are Gift Cards?

How to Maximize Returns from Cashback Rewards?

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So, what exactly is cashback, and how does it work? Cashback is a system where a certain percentage of the amount spent on a purchase is refunded to the consumer. Thus, consumers can save on their shopping and earn while spending. Lately, cashback rewards have become widespread for digital subscription payments. For example, assume you purchase a YouTube subscription through your Papel account. As soon as you make the subscription payment, a portion of the amount paid is immediately refunded to your account. You can use this refund for other purchases or withdraw it to your bank account.

In summary, cashback allows consumers to earn cash from their expenditures. Its most significant difference from other reward programs is that the refund is cash.

How Does the Cashback System Work?


Cashback programs offer consumers an advantage by refunding a certain percentage of their expenditures in cash. Usually, cashback campaigns are made possible through agreements between electronic money or credit card companies and retailers. Consumers earn a certain percentage on every purchase they make. This provides an advantage to consumers and encourages the use of electronic wallets or credit cards.

Companies offering cashback campaigns refund a certain percentage of purchases made at affiliated stores directly to the customer's account. This refund rate varies according to the type of shopping and campaign conditions. For instance, some cards may offer higher refunds for restaurant expenses, while others may provide travel or grocery shopping advantages. The conditions on when and how the cashback amount can be used may vary according to the campaign.

An electronic money institution offering cashback in many categories provides its users with a more advantageous shopping experience while achieving a higher transaction volume.

What Are the Advantages and Disadvantages of Cashback?

While cashback offers significant advantages for various purchases, it also positively affects store and electronic money institutions.

Advantages of cashback campaigns include;

Savings and Economic Gain

Cashback campaigns allow consumers to save while shopping and earn extra rewards. Especially high cashback rates in specific categories can provide significant advantages to consumers. In recent years, the increasing influence of fintech companies in the finance sector has also led to more advantageous campaigns for consumers.


Cashback can generally be used in any area, offering great flexibility to consumers. The spent money can be directly refunded to the account or used for other purchases. For example, the refund amount earned with Papel Cashback is immediately deposited into users' accounts without any action required. Moreover, this amount can be used for other purchases or withdrawn in cash. Thus, users have complete control over the rewards they earn.

Ease of Use

These programs are usually easy to use and understand. Consumers can automatically benefit from these advantages while shopping. Without additional applications, procedures, or limits, the amount is usually instantly refunded to the wallet.

Customer Loyalty and Transaction Volume

Cashback helps companies gain customer loyalty and encourages more spending on the platform.

Tangible and Immediate Rewards

Many cashback campaigns immediately deposit the earned refund amount into the account, allowing consumers to receive rewards and see them in their accounts.


Restrictions and Conditions

Some cashback programs may only be valid for specific categories or at affiliated stores.

Spending Requirement

To earn cashback, you must first make a purchase. Then, a portion of the paid amount is refunded to the account. This may only sometimes be suitable for some users.

In conclusion, cashback systems offer significant advantages to many users. However, consumers should carefully evaluate the terms and conditions of these programs and decide whether they are compatible with their shopping habits.

Do Cashback Rewards Have an Expiration Date?


Cashback has become one of the most popular ways to earn while spending. However, due to the various applications, a frequently asked question is whether these rewards expire. The answer varies depending on the wallet or card used or the cashback campaign.

Generally, a cashback reward stays active as long as the account is active. For example, a cashback reward in your Papel wallet can be used anytime for any expenditure. However, conditions may vary in some cashback campaigns. Some reward programs may have expiration dates or require meeting certain criteria to keep your rewards active. Therefore, reading the rules and conditions before benefiting from a campaign is beneficial.

Is Cashback More Advantageous, Or Are Gift Cards?


Cashback and gift cards offer different advantages for users with other shopping habits. However, there are some fundamental differences between these two promotional methods. We can list these differences as follows:

Ease of Use and Flexibility

While gift cards can easily be used in specific stores or online shopping platforms, cashback rewards have a much more comprehensive range of uses. Gift cards are usually limited to a particular store or brand, whereas cashbacks can be used for almost any expense.

Cost and Fees

General-purpose gift cards can sometimes include high transaction fees. On the other hand, cashbacks usually do not require any additional fees.

Reward System and Advantages

Some cashback programs may offer extra bonuses for certain expenses. For example, some cashback promotions provide a bonus opportunity when a certain amount is spent within a specific period. Gift cards, however, usually cost a fixed amount and offer no extra advantages.

Time Restrictions and Validity

Gift cards may have minimum usage requirements or usage restrictions for specific products. Also, gift cards that are not used within a certain period may expire. Cashbacks, on the other hand, typically do not have these kinds of restrictions.

How to Maximize Returns from Cashback Rewards?

You can use tactics to make the most of cashback rewards. Here are some tips for maximizing benefits from cashback opportunities:

Terms and Conditions are Important

First, read the terms and conditions to understand how cashback rewards work. Different companies may offer different percentages for different shopping categories.

Right Wallet / Card Choice

Consider having different wallets or cards specialized in other spending categories. This way, you can use the card that offers the highest cash rebate for a particular type of shopping.

Choose Campaigns Based on Your Habits

When choosing campaigns for cashback rewards, you should consider your shopping habits. For example, if you make many digital subscription payments, a cashback designed for gasoline expenses might not be ideal for you.

Stay Updated

One of the most essential rules to benefit from limited-time campaigns is to stay updated. This way, you can earn much higher cashback rates instantly. For example, by joining the Papel Community, you can be the first to learn about campaigns, thereby gaining more cashback.

To learn more about the cashback opportunities offered by Papel, all you need to do is click here!

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