What Is Cashback and How It Relates to Airline Miles: The Smart Traveler’s Guide

In the world of personal finance and travel rewards, two popular systems dominate the conversation: cashback and airline miles. They are often treated as opposites — one is practical and immediate, the other strategic and long-term. But what many people don’t realize is that both can be used together to maximize your benefits.

Whether you’re trying to save money, travel more for less, or simply make better financial choices, understanding what is cashback and how it relates to airline miles can change the way you use your credit cards, shop online, and plan trips — especially if you live in Brazil, where these systems are widely accessible and packed with opportunities.

What Is Cashback?

Cashback is a reward system where you receive a portion of your spending back in the form of money, account credit, or store credit. For example, if you have a credit card that offers 2% cashback, and you spend R$1,000, you’ll get R$20 back — either as a discount on your next invoice or as a balance in your account.

It’s simple, automatic, and doesn’t require complex calculations. That’s why cashback is a favorite among consumers looking for easy savings without needing to “learn a system.”

Key Characteristics of Cashback

• Immediate value: Cashback feels like a discount on everything you buy.
• No expiration: In most programs, cashback doesn’t expire.
• No restrictions: You can use it on anything — bills, shopping, investments.
• No loyalty needed: You don’t need to stay within a specific ecosystem like airlines.

Cashback in Brazil: A Growing Trend

In Brazil, cashback has become mainstream. While airline miles have long been a favorite among frequent flyers, cashback now competes head-to-head thanks to fintechs, digital banks, and e-commerce platforms.

Major Cashback Providers in Brazil

1. Méliuz
   One of the first popular cashback platforms in the country. Méliuz partners with hundreds of online stores and offers cashback when you purchase through their platform.
2. Banco Inter (Inter Shop)
   Customers of Banco Inter can shop directly in their app and receive cashback credited to their bank account.
3. PicPay
   A digital wallet that often offers cashback for bill payments, purchases, and referrals.
4. AME Digital
   Offers cashback on purchases made through their app, mainly used on sites like Americanas and Submarino.
5. Nubank (via Nubank Rewards)
   While technically a points system, the points can be used to “erase” purchases, functioning like cashback.

Cashback Rates in Brazil

• Standard rates: 0.5% to 2%
• Promotional campaigns: Up to 10% on selected stores or services
• Special events: On Black Friday, cashback may reach 15% or more

What Are Airline Miles?

Now let’s look at the other side of the coin: airline miles. These are part of a loyalty program where you earn points or miles for purchases — usually through flights, credit card spending, or shopping with program partners.

In Brazil, miles are most commonly associated with airline programs such as:

• Smiles (GOL Airlines)
• Latam Pass (Latam Airlines)
• TudoAzul (Azul Airlines)

These programs are also integrated with credit cards and banking rewards programs like Livelo, Esfera, and Itaú Sempre Presente, where you earn points that can later be transferred to your chosen airline program.

How You Earn Airline Miles

• Flying with the airline or its partners
• Using a points-based credit card
• Shopping at partner stores
• Signing up for mileage clubs (e.g., Clube Smiles, Clube Latam Pass)
• Transferring bank points during bonus campaigns

Airline miles are most valuable when used for airfare redemption, especially in business class, long-haul flights, or during periods of high demand.

Cashback vs. Airline Miles: Key Differences

Let’s break down the core differences between these two rewards systems so you can decide which aligns better with your lifestyle:

Feature	Cashback	Airline Miles
Type of Reward	Money or credit	Virtual currency for travel
Flexibility	High – spend on anything	Lower – mostly used for travel
Value Potential	Fixed value (e.g., 1%)	Variable – can be very high with promos
Expiration	Rare	Common (12 to 36 months)
Complexity	Simple and transparent	Requires learning and strategy
Earning Method	Direct via card/app	Often indirect via points → miles
Ideal For	Everyday consumers	Frequent or strategic travelers

In short, cashback offers guaranteed value, while miles offer potentially greater value — but only if used strategically.

How Cashback and Airline Miles Are Connected

You might think you have to choose one over the other — but here’s the truth: you can use both together.

How They Complement Each Other

• Use cashback platforms (like Méliuz) to earn cashback while shopping through a points-based credit card.
• Accumulate points from your card, which you’ll later transfer to an airline program.
• Use cashback rewards to pay for taxes and fees on your flights booked with miles.

This approach gives you the best of both worlds — immediate savings and free flights.

Real Example:

Let’s say you buy a R$2,000 item using your Livelo-partnered credit card through Méliuz:

• Méliuz gives you 4% cashback = R$80
• Your card earns 2 points per real = 4,000 points
• You wait for a 100% transfer bonus and get 8,000 miles

You just earned enough for a domestic flight plus R$80 cashback to cover part of the taxes. That’s smart travel planning.

When to Prioritize Cashback

Cashback is especially useful in these scenarios:

• You don’t travel often
• You prefer simplicity
• You want money back now
• You’re focused on saving or investing

People with modest monthly spending may benefit more from cashback if they’re not earning enough miles to reach meaningful redemptions.

When Airline Miles Are the Best Option

Miles shine when you:

• Fly frequently (especially long-haul)
• Book travel during peak season
• Aim for business or first class upgrades
• Can wait for transfer bonus campaigns
• Are part of mileage clubs for extra benefits

For example, a São Paulo–Madrid business class ticket might cost:

• R$12,000 in cash
• Or 100,000 miles + R$600 in fees

With a 100% bonus, you only need 50,000 points (collected via credit card). That’s a huge win compared to what cashback could give you for the same amount.

Tips for Using Cashback and Miles Together

1. Know your cards: Some cards allow you to choose between cashback or points. Evaluate monthly.
2. Use platforms like Méliuz + mileage cards: Double dip on rewards.
3. Separate spending: Use cashback cards for daily bills and mileage cards for high-ticket purchases.
4. Track promotions: Apps like Melhores Destinos notify you of mileage transfer bonuses and cashback deals.
5. Redeem smart: Save cashback to cover ticket taxes, baggage fees, or hotel taxes.
6. Be organized: Use spreadsheets or apps like AwardWallet to monitor both balances.

Real-Life Strategy: João and Ana

João uses a cashback card for everyday purchases, collecting around R$150 per month, which he uses to pay his phone and internet. Ana, his wife, uses a Livelo card and transfers her points during 100% promotions to Smiles.

In one year, they earned enough miles for two domestic round trips and had over R$1,500 in cashback savings, which they used for lodging and car rental.

Pitfalls to Avoid

• Ignoring expiration dates: Miles expire — cashback rarely does.
• Missing transfer promotions: Transferring points at 0% bonus is a lost opportunity.
• Overspending just for rewards: Rewards are great, but debt is not.
• Not comparing value: Always calculate whether miles or cashback offers more return.
• Letting points sit unused: Inactive points can lose value over time.

Future of Cashback and Miles in Brazil

Fintechs like Nubank, Inter, XP, and C6 Bank are blurring the lines between cashback and points. New products let you switch between earning cashback or miles based on your goals.

Expect innovations like:

• Real-time transfer of points to miles
• Cashback in cryptocurrency
• Smart notifications to alert you of best-value redemptions
• AI-driven reward optimizers (some already in beta by large banks)

These advancements will continue to make rewards more personalized, dynamic, and user-friendly.

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Final Thoughts: Combine Both for Maximum Value

At the end of the day, cashback and airline miles are not enemies — they’re allies. By understanding the strengths and limitations of each system, you can build a strategy that fits your lifestyle and financial goals.

If you travel often and are willing to plan, miles can save you thousands. If you prefer simple, instant savings, cashback is perfect. But the smartest users are those who leverage both systems — combining short-term returns with long-term travel benefits.

Start tracking your expenses, set goals, and choose the right cards and platforms. Before you know it, you’ll be booking flights with miles while covering fees with cashback — and traveling the smart way.