Overview

Cashback is a financial incentive where cardholders receive a percentage of the money they spend back as a reward. This refund is typically credited to their account or card balance.

How cashback works?

When a cardholder makes a purchase using their payment card, a predetermined percentage of the transaction amount is refunded to them as cashback. For instance, if a cardholder spends $200 and the cashback rate is 2%, they will receive $4 as cashback.

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Cashback money flow

Cashback is an internal transaction for a partner who wants to top up the user's balance as part of the loyalty program.
Our card & balances management system (Antaca) automatically debits the masterbalance with this transaction.

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Benefits of using cashback

Key features of the cashback

Common scenarios for cashback usage

Online shopping

In-store purchases

Subscription services

Cashback Calculation Models

The cashback amount can be calculated in various ways as described below. We can distinguish between two fee calculation models: percentage and fixed.

Percentage price models


Percentage Flat Rate Percentage Tiered Rate Decimal Fraction Flat Rate
Description "x" % of the transaction value

"x" % of the transaction value for transactions > 100 USD

"y" % of the transaction value for transactions <= 100 USD

A fraction of the transaction value after the decimal point
Example cashback
amount
0,5% * 125 USD transaction = 0,62 USD

0,5% * 125 USD transaction = 0,62 USD

0,2% * 95 USD transaction = 0,19 USD

0,45 USD when transaction value was 125,45 USD
Status Possible Possible Requires development

Important!  Decimal Fraction Flat Rate calculation model requires development.

Fixed price models


Fixed Flat Rate Fixed Tiered Rate
Description "x" USD per transaction

"x" USD of the transaction value for transactions > 100 USD

"y" USD of the transaction value for transactions <= 100 USD

Example cashback
amount
0,05 USD 

0,05 USD for 150 USD transaction

0,02 USD for 75 USD transaction

Status Possible Possible

Cashback Trigger Models

This section describes the moment when cashback is executed.


Instant Periodic Manual
Description Automatically after the transaction occurs Once per specified period (daily, weekly, monthly, quarterly, yearly) Triggered manually by the user in the app (or via API)
Status Possible Requires development Requires development

Important!  Periodic and Manual triggering models require development.

Cashback Payout Conditions

This section describes the rules that define whether cashback should be issued for a given transaction. These rules allow you to specify the conditions that must be met for cashback to be paid out, taking into account transaction data (merchant ID, transaction category, transaction amount, etc.).

Transaction/cashback amount conditions


Single transaction amount  Cashback amount Sum of transactions amount in specified period
Description Cashback only if the transaction amount is greater/less than "x" USD Cashback only if the cashback amount does not exceed/exceeds "x" USD Cashback once per specified period if the total transaction amount within that period is greater/less than "x" USD
Status Possible Requires development Requires development

Important!  Cashback amount and Sum of transactions amount in specified period require development.

Transaction data conditions

The product can calculate cashback based on specific transaction data. Below are the specific elements according to which we can define cashback rules.


Merchant identifier MCC Code Capture mode Wallet type
Description Cashback based on the specific merchant or set or merchants. Cashback based on the transaction category or set of categories. Cashback  based on method of payment. Cashback  based on digital wallet used for the transaction.
Example cashback behavior 0,5% cashback on transactions made at Ikea merchant 0,2% cashback on transactions made at book stores
(MCC: 5942)
0,25% cashback on transactions made onsite 0,01% cashback on transactions made with Samsung Pay

Transaction type Country Currency
Description Cashback based on the specific transaction type (POS, ATM, eCommerce) Cashback based on the transaction country Cashback based on the transaction currency
Example cashback behavior 0,3% cashback on eCommerce transactions. 0,02% cashback on transactions made inside the EU. 0,04% cashback on transactions made in USD.

If multiple cashback conditions are defined, each condition must be met for cashback to be awarded.

Example cashback definitions:
0,05% cashback on transactions made at Ikea merchant, which have value greater than 50 USD, and are made onsite with Samsung Pay wallet.


Revision #39
Created 4 June 2024 12:20:40 by Kamil Szalast
Updated 30 August 2024 09:09:00 by Kamil Szalast