Both cash and back ...
Cash back service is becoming an increasingly popular service among Russian users. She came to me, but to be honest, somehow it was not clear how to use it. The main question is why my bank needs it. We are trying to figure it out.
Cash back is a concept meaning the return to the buyer's account (usually a card) of a part of the cost of a service or product. That is, the so-called bonus program, designed to attract customers and increase its loyalty. The first cash back-projects in Russia were launched quite recently - about a year ago. A similar idea came to us from the UK and the USA, where this model is already functioning and very successfully.
Cash back, as a relatively new phenomenon in trade and related areas, should be distinguished from a variety of promotions (for example, coupon or coupon), discount programs or all sorts of sales.
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The cash back, in contrast to the traditional systems of discounts and bonuses, is represented by the following scheme with two main structural elements.
First, the client of the outlet (service point) pays the seller for the purchased goods (rendered service). Important in this sense is the preservation of all discounts and promotions provided by the seller.
Secondly, after the purchase and payment of the goods (services), part of the paid amount is returned to the client. The source of this return is the affiliate, that is, the entity that ensures the flow of buyers to the seller.
This scheme works on the basis of commissions, which are paid by the seller to its affiliate for the service of attracting each buyer. In turn, the affiliate uses part of the commission as payments to customers, thereby causing the promotion of purchases of goods and services through its portal in the future.
The money received on the card as a result of the cash back-up can be spent by the client, on the one hand, to pay for the next purchase, on the other hand, they can withdraw the indicated amount to their own bank card or to various payment systems.
Now banking services include the release of both credit and debit cards with the provided cash backing function. If you have a credit card, 0.5–3% of the value of the purchase is credited to the customer’s account. With a debit card, this percentage can be increased to five. A real reduction in the value of a product or service is the incomparable value of a cash back.
A certain disadvantage is that most banks practice providing cash back services in relation to only a certain type of purchases, the list of which is stipulated in the card opening agreement with the cash back option enabled. In addition, we can not exclude the fact of the collusion of the commercial enterprise and the bank in order to create the appearance of the effectiveness of the service. The mechanism is very simple: the size of the cache back-up is already situationally taken into account in the price of the goods.
One of the options for introducing a cash back-system is to launch universal discount cards on the principle of Cash Back Online. Then the client will receive to his account part of the amount paid in real money. In addition, discounts provided by the seller of a particular product or service will be added to the amount of cash back. The service is relatively new, so the conditions for the functioning of cash back cards are very loyal, and the refund amounts can be up to 5% (depending on the bank). The minimum purchase amount implying a bonus is also usually determined by the bank. As a rule, the amount is about five hundred rubles, while at some banks the maximum refund amount can reach 7,500 rubles, which then can already become a tangible benefit.
And now the key question. Why should the bank return the money to me? I’m already their client, I’m not going anywhere, sn getting, that is, loyal in all respects, nowhere else. The card honestly comes a small, but a percentage. The catch is not a catch, as they say, nothing, but nice.
Cash back is a concept meaning the return to the buyer's account (usually a card) of a part of the cost of a service or product. That is, the so-called bonus program, designed to attract customers and increase its loyalty. The first cash back-projects in Russia were launched quite recently - about a year ago. A similar idea came to us from the UK and the USA, where this model is already functioning and very successfully.
Cash back, as a relatively new phenomenon in trade and related areas, should be distinguished from a variety of promotions (for example, coupon or coupon), discount programs or all sorts of sales.
Cache backend mechanism
')
The cash back, in contrast to the traditional systems of discounts and bonuses, is represented by the following scheme with two main structural elements.
First, the client of the outlet (service point) pays the seller for the purchased goods (rendered service). Important in this sense is the preservation of all discounts and promotions provided by the seller.
Secondly, after the purchase and payment of the goods (services), part of the paid amount is returned to the client. The source of this return is the affiliate, that is, the entity that ensures the flow of buyers to the seller.
This scheme works on the basis of commissions, which are paid by the seller to its affiliate for the service of attracting each buyer. In turn, the affiliate uses part of the commission as payments to customers, thereby causing the promotion of purchases of goods and services through its portal in the future.
The money received on the card as a result of the cash back-up can be spent by the client, on the one hand, to pay for the next purchase, on the other hand, they can withdraw the indicated amount to their own bank card or to various payment systems.
Now banking services include the release of both credit and debit cards with the provided cash backing function. If you have a credit card, 0.5–3% of the value of the purchase is credited to the customer’s account. With a debit card, this percentage can be increased to five. A real reduction in the value of a product or service is the incomparable value of a cash back.
Cons and pros
A certain disadvantage is that most banks practice providing cash back services in relation to only a certain type of purchases, the list of which is stipulated in the card opening agreement with the cash back option enabled. In addition, we can not exclude the fact of the collusion of the commercial enterprise and the bank in order to create the appearance of the effectiveness of the service. The mechanism is very simple: the size of the cache back-up is already situationally taken into account in the price of the goods.
One of the options for introducing a cash back-system is to launch universal discount cards on the principle of Cash Back Online. Then the client will receive to his account part of the amount paid in real money. In addition, discounts provided by the seller of a particular product or service will be added to the amount of cash back. The service is relatively new, so the conditions for the functioning of cash back cards are very loyal, and the refund amounts can be up to 5% (depending on the bank). The minimum purchase amount implying a bonus is also usually determined by the bank. As a rule, the amount is about five hundred rubles, while at some banks the maximum refund amount can reach 7,500 rubles, which then can already become a tangible benefit.
And now the key question. Why should the bank return the money to me? I’m already their client, I’m not going anywhere, sn getting, that is, loyal in all respects, nowhere else. The card honestly comes a small, but a percentage. The catch is not a catch, as they say, nothing, but nice.
Source: https://habr.com/ru/post/166815/
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