Cashback Logic

Technical details of cashback calculation

Detailed breakdown of how RewardsPro calculates cashback.

Basic Formula

Cashback = Eligible Amount × Tier Rate

Eligible Amount Calculation

Starting Point

Begin with order subtotal (line items total).

Adjustments

Step	Calculation
1. Line items	Sum of (price × quantity)
2. Discounts	Subtract discount amounts
3. Excluded items	Remove non-qualifying products
= Eligible Amount	Final amount for cashback

What's NOT Included

• Shipping charges

• Tax amounts

• Tips

• Gift cards

• Excluded products/collections

Tier Rate Application

Finding the Rate

1. Look up customer's current tier

2. Get the cashback percentage

3. Apply to eligible amount

Example Calculation

Order Details:
- Products: $150.00
- Discount: -$20.00
- Shipping: $10.00
- Tax: $12.00
- Total: $152.00

Eligible Amount: $150 - $20 = $130.00
Customer Tier: Gold (5%)
Cashback: $130 × 0.05 = $6.50

Edge Cases

Zero Cashback Scenarios

No cashback awarded when:

• Order total is $0

• All items excluded

• Below minimum threshold

• Customer has no account

Rounding

Cashback is rounded to 2 decimal places:

• $6.504 → $6.50

• $6.505 → $6.51

Multi-Currency Orders

For stores with multiple currencies:

1. Order is in customer's currency

2. Converted to store currency

3. Cashback calculated in store currency

4. Credited in store currency

Discount Handling

Order-Level Discounts

Applied proportionally across all items.

Item-Level Discounts

Applied to specific items only.

Discount Code Types

Type	Handling
Percentage off	Reduces eligible amount
Fixed amount off	Reduces eligible amount
Free shipping	No effect on cashback
Buy X Get Y	Reduced on free items

Refund Impact

Full Refund

Original cashback: $6.50
Refund: Full order
Reversed: $6.50
Net cashback: $0.00

Partial Refund

Original order: $130.00
Original cashback: $6.50
Refund: $50.00 (38.5% of order)
Reversed: $6.50 × 0.385 = $2.50
Net cashback: $4.00

Processing Timeline

Event	Timing
Order placed	Immediate
Payment confirmed	Seconds to minutes
Webhook received	< 30 seconds
Cashback calculated	< 1 second
Credit applied	Immediate
Customer sees balance	Real-time