Earning Rules
Earning rules define how members accumulate benefits each time they make a purchase. The available configuration options depend on the program type you selected at onboarding.
Program types
| Program type | See |
|---|---|
| Cashback | Cashback Earning Rules |
| Points | Points Earning Rules |
| Stamps | Stamps Earning Rules |
Shared concepts (Cashback and Points)
Cashback and Points share the same earning model. The configuration parameters below apply to both, with differences noted where the calculation formula differs.
Formula
The formula determines how benefits are calculated from the transaction amount.
Linear
The benefit grows in direct proportion to the amount spent. You set a single numeric value that is applied consistently to every transaction.
- Cashback:
cashback = transaction_amount × value / 100 - Points:
points_earned = transaction_amount × value
Use this formula when you want a straightforward, predictable reward rate.
Stepwise
Benefits are calculated based on spending thresholds. You define ranges (from a minimum to a maximum amount) and assign a different value to each range.
- Cashback:
cashback = transaction_amount × value / 100(applied to the matching range) - Points:
points_earned = transaction_amount × value(applied to the matching range)
Use this formula to incentivize higher spending by rewarding it more generously.
Flat
The benefit is a fixed amount, regardless of how much the member spends. The value you set is applied as-is to every qualifying transaction.
- Cashback:
cashback = value(exact amount in the program currency) - Points:
points_earned = value(exact number of points)
Use this formula when you want to reward the act of transacting, not the transaction size.
Cap
The cap limits the maximum benefit a member can earn.
| Option | Description | Tradeoff |
|---|---|---|
| Max per transaction | Limits benefits earned from a single transaction | Controls costs on large purchases; may reduce perceived value for high spenders |
| Max per period | Limits total benefits earned within a time window (daily, weekly, monthly, quarterly, biannual, annual) | Controls costs over time; active members may hit the limit quickly if it is not communicated clearly |
| No cap | No limit applied | Maximizes incentive; costs become less predictable |
Floor
The floor sets a minimum benefit threshold per transaction.
| Option | Description |
|---|---|
| Min per transaction | A transaction must generate at least this amount of benefit; otherwise no benefit is assigned |
| No floor | Every qualifying transaction generates a benefit, regardless of size |
Rounding rule
Rounding applies when the benefit calculation produces a fractional value.
| Option | Behavior | Tradeoff |
|---|---|---|
| Round down | Always rounds toward zero | Reduces costs; systematically disadvantages the member |
| Round up | Always rounds away from zero | Benefits the member; increases costs incrementally over time |
| Standard rounding | Rounds to the nearest integer using standard mathematical rules | Balanced tradeoff between cost control and member fairness |
Points-only: Converter
The converter applies a transformation to the transaction amount before the earning formula is calculated. By default, the formula uses the monetary value of the transaction. The converter lets you substitute a different unit.
Example: A fuel retailer wants to assign points based on liters dispensed, not the euro amount. The converter translates the transaction value (euros) into the unit used for calculation (liters), and the formula is then applied to that converted value.
This setting is optional and only available for Points programs.