Cash back

Cash back rewards

Loyalty

A reward that returns part of what a customer spent, as money, store credit or a card statement credit.

What is Cash back?

Cash back gives customers a percentage of their purchase back. It's easy to understand: "Get 5% back" needs no explanation, which is why card issuers and shopping apps use it. Three kinds: - Card and app cash back, paid by a credit card or a shopping portal. The store doesn't control it. - Store cash back as credit, where the brand returns a share of the order as credit that can only be spent with it. This is the kind most brands run. - Rebates, where the customer claims money back after buying, often by uploading a receipt. Store credit vs points. Points need a conversion rate ("100 points = $1"), which makes the value harder to see. Credit shows a dollar amount, so customers know exactly what they have. Points give the brand more room to change rules and run bonus events. What to plan for: - Cost. 5% back on every order is a 5% price cut for loyal customers. Make sure your margins carry it. - Liability. Unspent credit is money you owe, so track it and decide whether it expires. - Timing. Credit issued after the return window avoids paying rewards on returned orders. For subscriptions, cash back credit works well when it applies to the next renewal automatically, so subscribers see the reward on every order. How Chargezen handles it: Chargezen rewards can pay out as Shopify store credit, and subscribers see their balance where they manage their orders.

Example

A skincare brand gives 5% back as store credit on every order. A subscriber who spends $60 a month earns $3 of credit each order, which comes off a later order.

Why Cash back Matters

A clear, money-based reward is one of the easiest ways to give customers a reason to come back.

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