Here, we explain how Monzo’s cashback scheme works, how much you could earn, and how it compares with similar schemes offered by other current accounts.
How does it work?
To use the new feature you’ll need to opt-in to cashback and activate the offers in the app.
Some offers may be single-use and others will be marked up as multi-use, meaning you can use it multiple times and you don't need to activate it each time.
Each offer has its own expiry date and you’ll get new offers each month. The retailers included are in the ‘top 10% of brands’ where Monzo customers shop.
Monzo says the offers are shaped by the way you shop, which means they might be different from other customers, and rates and retailers are subject to change.
Once you’ve activated them, when you use your Monzo card to shop in-store or online you’ll earn cashback on the spend.
Anything you earn will appear in your Cashback Pot, which is separate from your main balance, and it should arrive within three to four days after the transaction.
You can withdraw this as soon as it's available and move it to your personal account.
Find out more:
How much can you earn?
There’s no limit to how much cashback you can earn across all offers, however, each offer will have a maximum cashback limit.
For example, when we checked most of the offers had a maximum of £20 cashback, with a mix of single and multi-use offers.
Here are some of the cashback rates available on 16 November. The table is in alphabetical order.
At the time of writing Monzo offered a decent selection of retailers across travel, food and clothing, and some of the cashback rates were quite generous. For example, there was 15% at Disney+, which on an annual subscription (£109.90 a year), would earn you £16.49 in cashback.
We also spotted a Supermarket Boost when we checked out the cashback feature on the app, offering an extra 2% with all the big supermarkets, which could be used on top of any individual offer, so in this case, you would earn 7% at Asda. This means if you were to spend £100 at Asda, you could potentially get back £7 on one weekly shop.
However, the offers are constantly changing, need to be activated, and will have an expiry date, so it does require some savvy planning ahead to make the most of the feature.
Find out more:What's in the small print?
To get the cashback, you will need to agree to Monzo sharing your data with its merchants.
It will ‘de-identify’ your information, so partners won’t learn your name, full address, or any personally identifiable data.
To tailor offers to you, it will share:
You can opt out of cashback at any time, and your cashback balance will be moved into your personal account. You will lose any pending cashback.
At this point, Monzo will stop sharing your data with its partners.
If a transaction is reversed, refunded or cancelled you won’t earn cashback, and if it’s already been paid to you, Monzo will take back the amount from your Cashback Pot, personal account, or arranged overdraft.
When is it available?
Some Monzo customers already have access to the cashback feature, but others will have to wait.
Monzo said it’s being rolled out in the next few weeks and you should get a notification when you’re eligible.
How does it compare?
A fair few other banks also offer retailer cashback schemes or cashback on debit card spending to current account customers.
The table reveals what's available (we've only included fee-free bank accounts).
Lloyds, Halifax, Santander and Virgin Money all have cashback schemes similar to Monzo where the retailers and deals can constantly change. This means you need to be spending something with the specific retailer anyway to make the most of it.
However, Chase by JP Morgan offers cashback on most debit card spending for the first year after opening the account. This means you won't need to try and keep on top of specific retailer offers that may change and expire each month.
Find out more:Is Monzo a good current account provider?
Monzo did well in our latest survey of the best bank accounts, with a customer score of 82%.
Customers rated it highly for its customer service, the application process, and its app.
However, it missed out on becoming a Which? Recommended Provider because we only endorse banks with strong consumer protections. Since 2019 we've insisted that WRPs be signed up to the authorised push payment scam code to protect victims of fraud. Unlike most current account providers, Monzo has not signed up.
As Monzo is a digital bank it does not have any branches, so this type of account won't suit you if you prefer banking in person.
Find out more:source https://www.which.co.uk/news/article/monzo-launches-retailer-cashback-how-much-can-you-earn-aX0NP3a6A9dG