Cashback Program

A Cashback Loyalty Program rewards customers with a percentage of their spend (typically 2-10%) as credit toward future purchases. Unlike stamps (which reward visit count) or tiers (which reward status), cashback directly correlates the reward to dollar value. Works especially well for variable-ticket businesses where the customer's spend isn't uniform across visits.

How cashback programs work

Customer earns X% on every qualifying transaction. The earned cashback accumulates as wallet credit and can be redeemed against any future purchase. Some programs add multipliers (2x on first purchase, 3x during birthday month, bonus categories). Cashback is delivered to the customer's wallet pass in real-time so they always know their balance.

Cashback vs points vs stamps

Cashback advantages: direct dollar value (no math), works for variable-ticket businesses, customers understand instantly. Disadvantages: less psychological hook than completion (stamps) or status (tiers), can feel transactional. Best used in retail, ecommerce, and high-AOV services where the customer's spend per visit varies meaningfully.

Cashback rate sizing

Standard ranges: 2-5% for high-margin retail (apparel, beauty, jewelry), 1-3% for low-margin (grocery, QSR), 5-10% for high-AOV services with retail attach (medspa, beauty salon with product line). Wallefy's CFO specialist computes the margin-safe cashback rate for your specific industry and ticket size during the Growth Blueprint.