Here’s the best example of a Cashback transaction. Let me explain Cashback; when you purchase $100 in a supermarket (for example, wall-mart) using Debit card, the supermarket offers you $10 cashback. That means a $10 amount credits to your account by a Merchant.
Domain Knowledge of Cashback
You’re a software developer, and you work for a Credit/Debit card processing company. It is for you to understand the flow.
How it Works
It works in two steps. The first transaction is a sale. During this transaction, an amount of $100 deducts from the cardholder’s account. It is called a sale transaction.
Then, Merchant initiates a cashback transaction for $10. During this, $10 amount deposits to the Cardholder account. See the flow here.