Cashback balance management

The Reward Balance Management feature ensures accurate tracking, calculation, and application of cashback rewards for settled transactions. It enforces predefined reward limits (daily or monthly) while maintaining a detailed record of reward transactions. Additionally, it supports reward reversals in case of chargebacks (future) or transaction reversals.

This feature is designed to:

• Ensure that cashback rewards are applied only for settled transactions.
• Maintain compliance by enforcing reward limits per day, cycle, or other configurations.
• Enable accurate reporting and future reward enhancements by systematically recording reward calculations.
• Provide a structured mechanism to handle chargebacks (future) and reversals.

Key functionality & capabilities

Reward Balance Updates

• Pending reward creation: a pending reward record is generated once a cashback reward is calculated.
• Settled rewards only: the reward balance is updated only after the transaction is marked as settled.
• Limit Enforcement:
  • if a new reward calculation exceeds a daily or monthly limit, the reward amount is adjusted to the maximum allowed while still recording the transaction.
  • example:
    • Reward Balance = 198, calculated reward = 3, maximum balance = 200
    • The recorded reward is 2, final Reward Balance = 200.

Recording Reward Calculations

To support reward transaction limits, reporting, and future enhancements, all cashback reward calculations must be recorded with the following attributes:

• Reward ID: Unique identifier for the reward record.
• Account ID: The account associated with the reward.
• Statement ID: Links the reward to a specific statement period.
• Transaction ID: Identifies the original eligible transaction.
• Date: The timestamp of the reward calculation.
• Reward Amount: The cashback amount granted.
• Reward Status: Status of the reward (e.g., pending, settled, reversed).

Reversals & Chargebacks

• If a transaction that triggered a cashback reward is reversed or becomes a chargeback (future), the cashback reward record must also be reversed accordingly.
• This ensures that users do not receive rewards for transactions that are later invalidated.

Conditions

• Cashback reward limits are predefined in the system.
• Transactions must be marked settled before updating reward balances.
• The system has reversal logic in place for chargebacks and transaction rollbacks.