Debit Card Cash Back, Here’s the Process

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.

Sale transaction
Sale Transaction

Cashback Transaction

Then, Merchant initiates a cashback transaction for $10. During this, $10 amount deposits to the Cardholder account. See the flow here.

Cashback transaction
Cashback transaction

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Author: Srini

Experienced software developer. Skills in Development, Coding, Testing and Debugging. Good Data analytic skills (Data Warehousing and BI). Also skills in Mainframe.