Stores and various service centers are increasingly offering their customers discounts and bonuses, which allows them to stand out from the circle of the same shopping or service establishments. Recently, banks have also started offering cards with cashback .
Customer benefits
The word "Cashback" itself comes from the English words "Cash" - cash, money and "Back" - return. So literal translation is a refund. In fact, this means that part of the funds from the purchase made will be returned to the account of the card from which the purchase was made. For the buyer, this is a good enticing moment, besides, psychologically it is much more pleasant to get some of the money back from the purchase than to save up bonus rubles or take advantage of a discount next time, especially if it is not clear whether it will be at all. In addition, a refund to a card is very often perceived not as part of a once made purchase, but as a separate deposit, which is very attractive for every person.
Shop Benefits
Refunds are made in a small amount or a percentage (also small), so retail and service points do not suffer much damage from such refunds. But they have the opportunity to attract customers without advertising costs. Their number of buyers or the amount of purchases increases. So, under equal conditions, the buyer is more willing to go to the store with the possibility of refunding part of the cost of the goods.
Benefits for banks
To apply for a card with a cashback, the client needs to contact the bank. Usually, such cards have an annual service, which is paid immediately upon receipt of the card or crediting funds to it. This happens regardless of whether the card is in use or not. At the same time, the bank's client base is growing, which means that the number of clients who can be offered other banking products (loans, insurance, etc.) is increasing.
Cons of using such a map
- These cards usually cost a little more than regular cards. And, most likely, the bank will offer to issue a credit card, not a debit card, which means that if the money spent is not returned in due time, the client will have to pay interest for using the borrowed funds.
- Many banks do not issue cash for such bonuses and can be spent again in stores.
- Refunds may be limited and a large purchase will bring a small refund.
- Some of the products may not be eligible for the cashback.
- Not all stores provide this service.
So when issuing a card with a similar function, you must first clarify all the questions
(annual service, maximum
