Automatic Cash Back Revolutionizing Mobile Phone Contract Sales | The Communication Blog

Saturday, June 12, 2010

Automatic Cash Back Revolutionizing Mobile Phone Contract Sales

By Asim Bhuta

This article will explain to you what an automatic cash back mobile phone deals is, it will explain to you how it works and will explain to you the advantages and disadvantages of these type of mobile phone deals. A secret will be revealed in the conclusion of this article.

An automatic cash back mobile phone deal is exactly what it sounds like. A mobile phone contract deal that you buy and the merchant pays you cash back automatically without you having to claim it any way or form. You do not have to send off your mobile phone bills regularly within the 30 day limits etc. Some merchants will pay you over the counter once you have passed your credit check and you receive your mobile phone. Most of the online merchants pay via cheques or bank transfers within a month but can take up to 2 months.

To explain to you how this works, let's use a simple example. Say hypothetically you went to an online mobile phone contract comparison website and found a the best automatic cash back deal ever. A Nokia N97 on Orange's Dolphin 35 + Internet 18 month tariff. The line rental costs approximately 40 pounds per month and the amazing thing is the merchant is offering to give you such a large sum of cash back automatically that the effective monthly cost is actually 20 pounds per month. Let's also say that it is the merchant's policy to send you a cheque within 14 days upon receipt of your mobile phone. So you are still on this comparison website and you decide yes I want to buy this contract deal, so you click on buy and you are redirected to the merchant's checkout page. You have checked that all the details and that the deal is correct. You start to proceed with the checkout and complete your order. Your application will then be sent to the network Orange for a credit check. Once you pass the credit check the merchant will then send you your mobile phone with an Orange sim card. Within the next 14 days the merchant will dispatch your cheque and in the worst case scenario you will receive your cheque after 17 days (if posted via second class royal mail). Say you have received your cheque and you go and pay it in. This could take up to 5 working days for your cheque to clear. So again in the worst case scenario you will be able to use that cash back as you will after 22 working days.

Here are the main advantages of going for a mobile phone deal with automatic cash back. Provided you use your cash back to pay for your line rental costs, you could reduce your line rental charge by over half depending on the deal and merchant you choose. The biggest advantage is that you are not required to send off your monthly bills and other bits and bobs to the merchant to claim your cash back. A more recent advantage is that merchants are now offering to give away free incentives like HD televisions on top of the cash back without you having to claim anything from the merchant. They will send it to you without you having to contact them.

Merchants are taking the full risk and reducing their profits by a mile by offering such mobile phone deals, and thus automatic cash back mobile deals will never be cheaper than the cash back by redemption deals. But this author still feels that the advantages will always out weigh the disadvantages unless merchants place very confusing terms and conditions related to such deals such as 'Beepy' who ask for your very first 'paid' mobile phone bill, which is actually your second mobile phone bill, along with a completed cash back form.

In conclusion automatic cash back deals are the best type of deals to go for and our promised secret is to trust 'mobiles.co.uk' as they have an excellent customer service.

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