Cashback redemption

The Reward Balance Redemption feature enables customers to convert their accumulated cashback reward balance into a credit transaction applied to their main revolving credit account. This process can be triggered manually by the customer or automatically at predefined intervals. Each redemption is logged to maintain a clear audit trail of cashback conversions.

This feature enhances the cashback rewards experience by:

• Allowing customers to redeem their earned rewards as credit on their account.
• Automating the reward balance redemption process for ease of use.
• Ensuring transparency by logging all redemption transactions (as transaction applied to the main account).
• Integrating cashback redemptions seamlessly into the credit account transaction flow.

Key functionalities & capabilities

1. Redemption Triggers

Reward balance redemption can occur through:

• Customer selection: the customer initiates redemption via an API call, converting their reward balance into a credit transaction.
• Automated redemption:
  • monthly conversion: automatically converts the reward balance at the end of each month.
  • annual conversion (future feature): automatically converts the reward balance annually.

2. Credit Reward Record Logging

• When a redemption occurs, a credit reward record is created in the reward record log to track the balance conversion. (Future feature).
• This ensures transparency by documenting the reward balance adjustment and its application to the account.

3. Applying Credit Transactions

• A specific credit transaction type is used to categorize credit transactions originating from cashback rewards.
• Initial implementation approach:
  • the credit transaction is processed similarly to other credit transactions, following standard repayment allocation and recording rules.
  • the redemption seamlessly integrates into existing credit account processing workflows.

Conditions

• The reward balance is available and meets redemption criteria before processing.
• Transaction types for credit redemptions are predefined and configured.