Both cache and backing ...

    Cash back service is becoming an increasingly popular service among Russian users. She came to me, but honestly, somehow it was not clear how to use it. The main question is why my bank needs it. Trying to figure it out.

    Cash back - 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 recently - about a year ago. A similar idea came to us from the UK and the USA, where a similar model is already functioning and very successfully.
    Cash back, as a relatively new phenomenon in trade and related fields, should be distinguished from various stocks (for example, discount or coupon), discount programs or all kinds of sales.

    The mechanism of action of the cache back

    Cash back, in contrast to the traditional systems of discounts and bonuses, is represented by the following scheme with two main structural elements.
    Firstly, 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 acquisition and payment of goods (services), a part of the amount paid is returned to the client. The source of this return is the affiliate, that is, the entity that provides the influx of buyers to the seller.
    This scheme works on the basis of commissions paid by the seller to his affiliate for the service of attracting each buyer. In turn, the affiliate uses part of the commission as payments to customers, thereby stimulating the purchase of goods and services through its portal in the future.
    A client can spend money received on a card as a result of a cash back to pay for the next purchase, and on the other hand, withdraw the indicated amount to his own bank card or to various payment systems.
    Now banking services include the issuance of both credit and debit cards with the provided cash back function. If you have a credit card, 0.5-3% of the total purchase price is credited to the client’s account when buying on credit. If you have a debit card, this percentage can be increased to five. A real reduction in the cost of a product or service is an incomparable advantage of cash back.

    Cons and pros

    A certain minus is that most banks practice providing cash back services with respect to only a certain type of purchases, the list of which is stipulated in the agreement on opening a card with the cash back option enabled. In addition, the fact of collusion of a trading company and a bank in order to create the appearance of service effectiveness can not be ruled out. The mechanism is quite simple: the size of the cache back is already situationally taken into account in the price of the goods.
    One of the options for implementing a cash back system is to launch universal discount cards based on the Cash Back Online principle. Then the client will receive on his account a portion 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 return amount can be up to 5% (depending on the bank). The minimum purchase amount, which implies bonus accrual, is also usually determined by the bank. As a rule, the amount is about five hundred rubles, while some banks have a maximum return amount of up to 7,500 rubles, which then can become a tangible benefit.

    And now the key question. Why would a bank give me money back? I’m already their client, I’m not going anywhere, I get sn - that is, loyal in all respects, I have nowhere else to go. Honestly a small but percentage comes to the card. The catch is not the catch, as they say, a trifle, but nice.

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