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Cashback

Cashback is the simplest and most transparent loyalty mechanic: members earn a percentage of every purchase back as credit, and spend that credit as a discount on a future transaction.

How it works​

When a member makes a purchase, Spraed calculates the cashback amount based on the rate you configure (e.g. 5% on every €100 spent = €5 cashback). The credit is added to the member's account and can be applied as an instant discount the next time they shop.

There is no points-to-value conversion for the member to figure out. The value is always clear: €1 of cashback = €1 off a future purchase.

Available balance vs pending balance​

How cashback becomes spendable depends on whether you run a Single Brand or Coalition program.

Single Brand: cashback is credited to the member's available balance immediately after the transaction. They can spend it on their next visit to any of your locations.

Coalition: cashback earned at a merchant appears as pending in the member's account. It becomes available only after the issuing merchant funds the amount by settling their debt to the program. This protects the network: a member can only spend cashback that has actually been financed.

Members always see both balances clearly in the app — available and pending — so there is no confusion about what they can use right now.

Settlement in a coalition context​

When a member earns cashback at Merchant A:

  1. Spraed debits Merchant A for the cashback amount plus any applicable commission
  2. The funds are credited to the Business's currency account
  3. The member's pending balance becomes available
  4. When the member redeems at Merchant B, Spraed reimburses Merchant B from the currency account

See Coalition programs for a full explanation of the settlement flow.

Configuring cashback​

When setting up a cashback program you define:

  • Cashback rate — the percentage earned on each eligible purchase
  • Eligible transactions — whether all purchases qualify or only specific categories
  • Minimum purchase threshold — optional minimum spend to trigger cashback
  • Redemption rules — minimum balance required to redeem, maximum discount per transaction

Why cashback works​

Cashback is the most immediately understood loyalty mechanic by consumers. There is no learning curve, no catalog to browse, no points expiry to track. The value proposition is direct and the feedback loop is fast — members see the benefit within seconds of their purchase.

For businesses, cashback drives repeat visits with a straightforward financial model: you only pay out when customers come back.