Meaning of Cashback and Its Types, Also Know the Difference with Discounts

Kapanlagi.com - Online shopping has now become one of the choices for many people. Whether it's online shopping within one region or even online shopping abroad. In online shopping activities, there are also many terms used, one of which is cashback. But what does cashback mean?

Yes, cashback is one of the expressions that we are familiar with when making online shopping transactions. Whether it's transactions for purchasing goods or for food. The meaning of cashback itself is cash rewards or can be in the form of points given by a company after someone makes a purchase of goods or services from that company.

Similar to discounts, but with a slightly different meaning. So, for KLovers who are curious about the meaning of cashback, here is the definition of the meaning of cashback along with its types and differences from discounts. Let's check it out, KLovers.

1. Understanding Cashback

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As mentioned earlier, cashback is a cash reward or points given by a company after someone makes a purchase of goods or services from that company. The term cashback is often found when making transactions using a credit card. When a user makes a transaction with their credit card, they will receive a certain percentage of points as a reward.

However, nowadays cashback can not only be found in credit card transactions, but also in online transactions. Cashback schemes are becoming increasingly popular. Many digital industry players offer cashback for every purchase of goods or services. This certainly provides many benefits, especially for consumers. So many people make purchases when there is cashback available.

Most cashback promotions nowadays usually do not actually involve direct cash refunds to the buyer. Sellers usually provide cashback in the form of a deposit. This method is used so that buyers will make future purchases using the deposit provided by the party offering the cashback promo.

2. Types of Cashback

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After knowing the meaning of cashback, you also need to know the types of cashback that you can easily use. Yes, there are many forms or types of cashback that you can use in various transactions. And here are some types of cashback that you might understand and use:

1. Credit Card Cashback

It is a program or strategy from a certain bank that will provide benefits in the form of a refund of a certain amount of money if you successfully make certain transactions or reach a certain transaction value.

2. Debit Card Cashback

It is a type of cashback given every time you make a transaction using a debit card.

3. Online Store Cashback

It is a program issued by marketplaces or online shops in the form of discount coupons or a certain amount of money that can be used for future purchases.

4. Accommodation Cashback

It is a cashback where each party that participates in the cashback program will only receive a small benefit, and the opposing party may even receive a larger benefit.

5. Property Cashback

Property cashback is a cashback that consists of benefits or advantages given by a property developer if consumers are willing to purchase the property being sold, such as shop houses, houses, apartments, etc. These benefits usually come in the form of complementary property items such as air conditioners, refrigerators, TVs, and even motorcycles or cars.

6. Cashback Reward

This type of cashback is not in the form of cash, but rather points that can be exchanged for certain rewards.

7. Collaboration Cashback

This is a type of cashback where all parties involved voice their opinions and desires, resulting in collaboration of interests and desires to find the best solution.

8. Motor Vehicle Cashback

This is a benefit or advantage given by a leasing company for the purchase of motor vehicles from their company. The benefits usually include items such as mobile phones, laptops, tablets, etc.

9. Dominance Cashback

This type of cashback benefits only one party, while the other party does not gain much advantage.

10. Cashback Lose-Lose

Cashback is done to avoid or resolve conflicts. So, each party will choose to resolve the issue calmly.

3. Difference between Cashback and Discount

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And the last one is the difference between cashback and discount. As explained earlier, cashback means cash rewards or points given by a company after someone makes a purchase of goods or services from that company. But what is the difference with a discount?

Yes, there are differences between cashback and discount. The main difference is that cashback usually provides benefits through credits that can be used for future purchases. While a discount provides benefits in the form of direct payment deductions, and consumers can make payments at the discounted price.

In addition, usually cashback can only be used when making purchases at the same place that offers the cashback. Furthermore, cashback usually has a long period of validity for consumers, which can be valid for several months or years.

On the other hand, discounts have relatively short validity periods, starting from one month, one week, or even just a few days or hours. In addition, the form of cashback is usually predetermined by the cashback program organizer, consumers cannot choose the cashback they will receive. While the discount is clearly in the form of a direct price reduction that must be paid by the consumer.

That is the meaning of cashback that you can understand in various aspects. Not only knowing the meaning of cashback, but you can also know the types of cashback and also the differences with discounts.

(kpl/gen/dhm)