How Cashback works

Have you heard a lot about it in the last few days but still haven’t figured out how Cashback works ? In reality it is a procedure put in a hurry and fury by the Government so it turns out to be rather complicated both to understand and to activate. Many people, not understanding how cashback works, have given up and have given up on the benefits it brings. You don’t make the same mistake! Take 5 minutes and read this guide; assures you that at the end of the reading you will know perfectly what the status cashback is and how to use it.


  • What is Cashback
  • How Cashback works
    • Christmas cashback
    • Cashback 2021
    • Super Cashback
    • How to activate Cashback
      • Enable Cashback without SPID
      • Enable Cashback from IO

What is Cashback

Before seeing how Cashback works, it is necessary to understand what Cashback is. Let’s say that the Italian translation gives the idea … “to have money back”. Cashback is a system designed by the Italian State in 2020 to combat tax evasion by trying to encourage the use of electronic payments and therefore track all transactions. Cashback is therefore part of the so-called Cashless Italy Plan , a large project designed to discourage the use of cash.

The state cashback provides for a refund of 10% (with a maximum refund limit of 150 euros for each cashback) of all expenses made with electronic payment systems (credit cards, debit cards and other electronic payment systems) in physical stores. There are different periods for state cashback, as we will see later and the amounts returned are completely tax free.

For physical shops we must mean shops, bars and restaurants, supermarkets and large distribution but also artisans and professionals; Online purchases (e.g. Amazon), ATM withdrawals and double purchases in the same shop on the same day are excluded. Purchases for professional fields are excluded from the state cashback.

The State Cashback is reserved for Italian citizens of age and residing in Italy.

How Cashback works

Now that you know what Cashback is, let’s see how Cashback works. Let’s say first of all that at the moment 4 phases are planned, each of which gives the right to a refund. The first of these stages was called Christmas Cashback .

Christmas cashback

The first phase has already begun and has been called Christmas Cashback ; this phase runs from December 8th to December 31st. During this period, 10% of the expenses made with credit cards, debit cards and other electronic payment systems in physical stores are reimbursed provided that at least 10  purchases  are made during the period. The amount of purchases does not matter; what matters to be entitled to the Christmas Cashback is that they are at least 10. During the Christmas Cashback for each expense made with credit and debit cards registered for the service, 10% will be credited up to a maximum of 15 euros for each purchase ; the maximum amount of the Christmas Cashback is 150 euros. The entire amount of the Christmas Cashback will be credited to the current account chosen during the month of February 2021.

Cashback 2021

The other three phases are six-monthly and are scheduled for the year 2021 and 2022 and precisely:

  • from 1 January 2021 to 30 June 2021
  • from 1 July 2021 to 31 December 2021
  • from 1 January 2022 to 30 June 2022

For each of these phases, it will be possible to obtain a refund of 10% on the amount of purchases that will be made with cards (and from 2021 also with other electronic payment systems such as Apple Pay) in physical stores. Also in this case the maximum amount of the state cashback is 150 euros for each semester (therefore 300 euros per year). At least 50 purchases per period are required to be eligible for state cashback .

State cashback refunds will be paid to the current account chosen during registration within 60 days from the end of each period.

 Super Cashback

In addition to all this, there is also a special prize called   Super Cashback of 1,500 euros that will go into the pockets of the first  100,000  people who have made a greater number of purchases valid for cashback. Therefore, to assign the Super Cashback, a sort of ranking will be drawn up based on the number of transactions (the amount of each transaction absolutely does not matter).

The Super Cashback will be awarded at the end of each period and therefore of each semester.

How to activate Cashback

Well, now you know what Cashback is and above all how Cashback works and what the periods are. I’m sure you have clearer ideas; now all that remains is to see how to activate the Cashback.

To activate the Cashback you will have two different possibilities:

  • Use the official IOapp but the SPID is required to log in; this is the most complex procedure but it is valid for all banking institutions
  • Activate the status cashback directly from the app of the enabled credit institution. In this case the SPID will not be required and the procedure is very simple but there are few institutes that allow this solution

Enable Cashback without SPID

The simplest solution, as I told you, is cashback without spid. In fact, some banks allow you to join the cashback without spid directly from their application. To date if you use one of the following services:

  • Poste Italiane (BancoPosta and Postepay)
  • American Express
  • BancomatPay
  • Credem
  • Flowe
  • Hype and Sella
  • Nexi Pay (from January 2021)
  • Satispay (from January 2021)
  • virtual credit card Yap

you can enable cashback without spid directly from their app. For example, if you use Poste Italiane current accounts you can activate cashback without spid directly from the bancoposta app in a few seconds.

Enable Cashback from IO

If you need to activate the Cashback for credit or debit cards of a banking institution that does not allow you to enable Cashback without SPID then you will first have to request and activate the SPID (Public Digital Identity System); it is a free tool that allows individuals and companies to access all the digital services of the Public Administration with a single digital tool. You can request the SPID from various entities; I recommend that you request the SPID from the Post Office or activate the Aruba SPID .

Once in possession of the SPID, the next step is to install the IO app on your smartphone (available for Android and iOS ) to be clear the app that was already used in the past for the Holiday Bonus or to make payments to the Public Administration. Once installed IO you will have to log in with your SPID and you will finally be ready to activate the State Cashback.

To activate the Cashback from IO from the menu at the bottom, press the button marked Wallet and then press the Cashback word .

Press the Add a cashback method button and select the type of credit or debit card you want to use for cashback and then follow the instructions on the screen; repeat the procedure to insert all the cards in your possession and which you want to use for state cashback. Then enter the IBAN of the current account where you want the cashback to be credited.

Now that you have managed to activate the Cashback and you know in detail how the Cashback works, you just have to make purchases but keep in mind that, once you have registered a card, you will have to wait until the next day to accumulate the cashback and that you will see the ‘cashback amount overdue with respect to the transaction (within 3 working days).

by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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