Loyalty rewards. With this motto, many brands give up part of the earnings in exchange for keeping the customer. This is the slogan of cashbacka mechanism that refunds part of the money spent to the consumer.
Created in 1986 by the credit card operator Discover, in the United States, the instrument can be translated into Portuguese as “money back”, an expression that literally describes what happens. The consumer of a certain brand or service accumulates scores or amounts in reais or in digital currencies that translate into future benefits.
In some cases, the accumulation process takes on a guise of video game, with consumers unlocking levels and achievements. The redemption can be made in cash, for discounts on future purchases or for the purchase of products in virtual stores with the points or accumulated resources. It all depends on the service.
The mechanism represents an evolution in relation to traditional loyalty programs, which offered redemption of products, services or gift certificates. In Brazil, the modality is more common in credit card operators, but in recent years it has spread to stores online, fintechs and digital wallets.
Process
to adhere to cashbackthe consumer needs to register in the site of the brand or service. Some companies also ask customers to download applications to check the accumulated points balance and make redemptions.
There is no standardization for charging fees. While some companies charge annual or monthly fees, many offer the cashback without fees, to reward brand loyalty. In fact, this process is not free, as it requires the customer to spend before receiving some of the money back.
Use
Normally, the mechanism returns to customers from 1% to 5% of the value of purchases or other transactions, but there are no rules. The percentage can rise in specific seasons, such as sexta-feira Negra. In other cases, those who pay the bill in more installments receive higher percentages, from 10% to 16%. It all depends on the brand and the type of contract.
The use of returned resources varies greatly. Most companies offer cash that can only be used to get discounts on future purchases, pay bills, or shop at websites or in physical stores associated with the service. Financial institutions can make the service conditional on making investments within the group itself. In recent times, however, the cashback has gained other aspects.
At the cashback social, the amounts are reverted to needy institutions. Normally, the consumer chooses whether to use the score and accumulated values for their own benefit or to use them for social projects.
Refund
there is also the cashback free, which allows the redemption of benefits in the form of cash. In the past, companies offered a debit card with the values of digital currencies or scores converted into reais, for the customer to spend as they wish. Some card operators credited the money to the customer’s account within two business days.
With the consolidation of Pix, the process was accelerated. Those who prefer to use the instant transfer system can redeem it in the company’s application and transfer the money instantly to any current account. In this case, however, the consumer needs to be aware, as he will have to create a Pix key in the cashback and, after converting the balance into reais, declare the amount of redemptions in the Income Tax. The application itself will provide the statement to guide the taxpayer to fill in the tax return.
The main recommendation for those who adhere to the mechanism is to read the contract, available at site registration form or in the application associated with the service. The document details the formulas for accumulating scores and values and explains how the redemption is carried out, informing any conditions and barriers for the return of funds previously spent by the consumer.
