Utility bills like electricity, water, gas, and internet are the most considerable and essential expenses, but can you believe that you would receive cashback on all those Utility Payments? Most indeed, platforms and even some banks have ways and means to give you cash back on a portion of the spending you make with it, helping you cut expenses while paying for some necessities. In this review, we will look through the best ways to have your cashback, listing out their pros and cons to help you find that right strategy for you.
Here are All the Top Ways and Platforms You Can Use to Earn Cashback on Utility Payments:
1. Cashback Credit Cards for Utility Payments
It could be the most direct way of generating rewards on utility bills from cashback credit cards. Cash-back rewards cards are very popular, by commercial banks offering cash rewards based on a wide scope of expenses, even including utilities. With such credit cards, each monthly payment translates to savings every month.
How it Works
Each cashback credit card you pay for your Utility Payments with allows you to get a portion of that money back as cash. Suppose your credit card pays a 1% cashback rate on all utility purchases and you have a $200 utility bill every month. Well, in the end, you would earn $2. You could think of it as too little for you, but over time, those few dollars accumulate, especially when your utilities are pricey.
Best Cashback Credit Cards for Utilities
Some cards feature a cash-back reward on utility bills, such as,
- Chase Freedom Flex, for example, offers 1% cash back on all purchases, including utilities.
- Citi Double Cash Card: Here, one gets 1% back at the time of purchase, and the other 1% when you pay it usually goes towards utilities provided the utility allows credit card payment.
- American Express’ Blue Cash Preferred: Long known for cash rewards programs on everyday expenses, that includes utilities on some eligible categories.
Pros and Cons of Using Cashback Credit Cards
Pros: Convenient, simple way to earn cashback; no additional fees if paid on time; also enhances credit score if managed well.
Cons: Some utility providers charge extra fees for credit card payments; interest rates can apply if balances aren’t paid in full.
2. Digital Wallets and Payment Apps
Using services like Google Pay, Apple Pay, and cashback apps, you can earn rewards on Utility Payments as well. Most of these services have teamed up with banks or cashback apps to give you a percentage back when you pay utilities through their service.
How it Works
You link your bank account, debit card, or credit card to a digital wallet or cashback app and pay your Utility Payments through the app. If the app has a cashback offer on utility bills, you’ll receive a percentage of the payment back, either as cash, points, or discounts.
Popular Digital Wallets and Payment Apps
Some digital wallets have proven effective for cashback on Utility Payments:
- Google Pay: This firm provides periodic cash back promotions on recurring payments like those for utilities.
- Apple Pay: At times, the cash back feature is integrated with specific cashback programs, providing rewards sometimes even for utility.
- Rakuten is a cash back website whereby cash back offers can be applied to any form of online bill payments from such utility companies.
Use of Digital Wallet Advantages and Disadvantages
Advantages: Convenience most of the time coupled with bonus cashback opportunity; it maintains your confidential card information since users don’t have to input them again. Several applications don’t require that you should make any form of minimum purchases.
Downsides: The cashback rate is somewhat unstable, but it usually mainly applies to some specified date, and not all the utility companies use these cash back wallets.
3. Utility Payment Cashback Programs
There are several banks that have specific offers where it pays clients to pay their utility bills using accounts or credit cards. These cashback programs facilitate customers who just want the cash back with ease without having to shift between other platforms or applications.
How it Works
For those who have cashback-specific programs, banks will request to enroll you and will automatically credit a percentage on Utility Payments. Rates range between 0.5% and 2%. These are available at most banks offering direct debit or credit card payments.
Some of the Popular Bank-Specific Cashback Programs
- Capital One Savor Rewards: A favorite for its cash-back incentive, this one has at times offered discounts on utility and recurring payments.
- Wells Fargo Cash Wise: It provides up to 1.5 percent in cashback from the purchase, which can cover the utility payments with an eligibility of a cashback card.
- Bank of America Customized Cash Rewards: Its flexible categories often give it some options like utility.
Benefits and Drawbacks
Ease and predictability; the cashback received through them does not require dependence on third-party applications and best utility payment rate can be received through them.
4. Third-Party Cashback Apps and Portals
Most cashback programs partner with utility providers for rewards on Utility Payments. Some of these may be offering exclusive deals or greater cashback rates that you can use to get cash back beyond regular payments.
How it Works
You can sign up on a cashback platform, link your bank or card, and check if they partner with your utility providers. When you pay your utility bill through the app or portal, cashback is deposited directly into your account or as points, depending on the provider.
Some Popular Third-Party Cashback Platforms Include:
- TopCashback: Popular for its partnerships and cashback rate on Utility Payments.
- Dosh: Cashback is automatically generated by linking a bank account and using the participating utility providers.
- Swagbucks: The cashback is mostly from the surveys; in some cases, it can provide cashback on specific Utility Payments when available.
Pros and Cons of Third-Party Cashback Websites
Pros: Cashback rates are competitive; some websites offer other incentives and offers; there are more options in account linking.
Cons: Utility providers are not available everywhere; cashback rate differs; managing multiple accounts becomes complicated.
How to Determine a Cashback Option Which Best Pays Off Utility Payments
With the myriad of ways there are in terms of earning cash on Utility Payments, how would you know which one’s best? Consider spending, preferred payments, comfort with digital platforms, and the rest.
Read More: Cashback
Read More: Purpose of Cashback Offers
