Cashback vs points: which earns you more?

Last checked: 30 October 2026.

In short: cashback is paid in pounds, so £1 is always £1. Points can be worth more than their cash equivalent, but only if you spend them well. To compare the two fairly, turn the points into pence using a realistic redemption, then set that against the cashback percentage.

How cashback sites pay you

Both of the UK's big cashback sites work in a similar way. A retailer pays the site a commission when you buy through its link, and the site passes some of that on to you.

TopCashback (from its terms and site)

• Tracking. Your purchase has to track. That means clicking the main "Continue" button, finishing the purchase in the same session while logged in, and the retailer confirming the order qualifies. Cashback can be declined if you return, change or cancel part of the order.
• Withdrawing. You can be paid by bank transfer, PayPal or various gift card and voucher providers. You can make one payout request every 24 hours, and there's a 72-hour wait after you change your payment details. The site says "No minimum payout amount", although the terms let individual payout methods set minimums.
• Membership. Classic is free. Plus deducts up to £5 for each 12-month "Qualifying Year" when you withdraw.
• Staying active. Log in at least once every six months or your account may be disabled as dormant. Cashback on a disabled account is forfeited.

Quidco (from its Account Holder Agreement and help centre)

• Missing cashback. Claims must be made within 45 days of the purchase.
• Withdrawing. You can be paid by BACS bank transfer or PayPal (minimum £1 for both), or as retailer gift cards, some of which come with a payout bonus. New payment details go through a 48-hour security check. You can't withdraw from outside the UK or over a VPN.
• Premium. Premium retains £1 when you upgrade, then £1 for every active 30 days. Rates shown on Quidco's How it Works page are labelled "new premium member rates".
• Staying active. Your balance is forfeited if your account is inactive (no log-in) for more than six months.

The catch with cashback: you don't own the money until it's paid out. TopCashback says legal title only passes on a successful withdrawal, and Quidco says a balance "does not itself represent a sum of money held by us". Withdraw regularly.

How points pay you

Points schemes turn your spending into a currency whose value depends on how you use it:

These floor figures come straight from official terms. Better redemptions can lift the value, but nothing guarantees it.

A simple way to compare

For any purchase:

1. Cashback value = price × cashback % (after any membership fee).

2. Points value = price × points per £1 × your realistic pence per point ÷ 100.

3. Compare the two. If the points only beat cashback at a value you're unlikely to get, take the cash.

Illustrative example (made-up numbers, not real offers): say you spend £200 with a retailer offering 3% cashback, and the same purchase earns 2 points per £1 in a scheme you value at 0.5p.

• Cashback: 3% of £200 = £6.00.
• Points: 400 points × 0.5p = £2.00.

The points would need to be worth 1.5p each just to match the cashback.

You can often have both. A cashback site and a loyalty card don't always cancel each other out. Paying with a points-earning card and shopping through a cashback link may earn both, depending on each scheme's terms Not yet confirmed. TopCashback also says you can stack discount codes with cashback.

When points beat cashback

• You'll actually use the points for something that beats their floor value, such as a Reward Flight you were going to pay for anyway, and you've checked the value with our calculator.
• The scheme offers a fixed upgrade over cash, such as Tesco Reward Partners at "up to 2x".
• Cashback rates for that retailer are low or don't track reliably.

When cashback beats points

• You'd only ever spend the points at their floor value.
• You might not use the points before they expire. IHG points (for non-elite members) expire after 12 months without activity, and Accor Reward points after 365 days.
• You want certainty: cash doesn't suddenly get devalued.

Watch-outs on both sides

• Cashback can be declined by the retailer, takes time to confirm, and is lost if your account goes dormant.
• Points can be devalued, can expire, and often need cash on top (for example the fixed taxes and fees on Avios Reward Flights).

See our TopCashback and Quidco profiles for full terms and verification notes.