Card-linked offers vs payment loyalty: after the payment or inside it
Resources · Concept
Card-linked offers are merchant-funded rewards tied to a payment card: the cardholder activates an offer, pays with the card, and the reward arrives later, once the transaction is matched and reconciled, typically using card network data. Payment loyalty works differently: the benefit is decided inside the authorization, at the POS, processor or checkout, and shows up in the same payment. Qurable is an example of payment loyalty: it decides the benefit inside the authorization in ~150 ms.
- ActivateOffer in the app
- PayWith the card
- ReconcileBatch, days later
In the payment
- Identify< 50 ms p95
- Decide~150 ms
- ApplySame authorization
- 0 msAuthorization arrives
- ~150 msReward in the payment
- + daysCard-linked credit posts
Banks and fintechs, in production
Our banking and fintech clients already deliver cashback at payment with Qurable.
Pomelo, Santander Peru, Banisi and Konfío, among others. With Pomelo, banks, fintechs and companies that issue cards turn on loyalty and cashback without a separate technical project.
- ~150 msReward decisionInside the authorization
- < 50 msMember identificationp95, server-side
- 99.5%SLACommitted availability
- 18MMembersIn programs running on Qurable
Key takeaways
- With card-linked offers, the customer activates the offer and gets the reward later, once the transaction is reconciled.
- Payment loyalty decides the benefit inside the authorization and shows it in the same payment.
- Inside the payment, caps and exclusions apply first, and a refund reverses the benefit along with the payment.
The difference
A reward after the transaction or a benefit inside it.
Card-linked offers match a purchase after it clears and credit the reward later. Payment loyalty decides the benefit while the payment is being authorized. Both reward card use; the timing changes what the customer sees and what the issuer controls.
| Card-linked offers | Loyalty inside the payment | |
|---|---|---|
| When the benefit is decided | After the transaction, when it is matched to an active offer | During authorization, in milliseconds |
| When the customer sees it | Days later, as a statement credit or in the app | On the same receipt or at checkout |
| How it is triggered | The cardholder usually activates the offer first | Campaign rules apply it to eligible purchases |
| Who funds it | Mostly the merchant, through the offer | The issuer, the merchant or both, with each share recorded |
| How it is personalized | An offer catalog targeted by segment | A benefit chosen per customer from profile, balance and campaign rules |
| Returns and reversals | Handled afterwards, in the matching and billing process | Reversed within the same authorize, capture and revert cycle |
How each one works
Two flows for rewarding card use.
Card-linked offers run on transaction data after the purchase. Payment loyalty runs inside the authorization. Here is each flow, step by step, and what changes for the issuer.
Enrollment
The cardholder enrolls and activates offers in the bank's app or online banking.
Purchase
The customer pays as usual; nothing changes at the point of sale.
Matching
Transaction data is matched to active offers after the purchase, often in batches.
Reward and billing
The reward is credited later, and the merchant is billed for the offers redeemed.
Signal
The POS, processor or checkout sends the transaction while it is being authorized.
Recognition
The card, or a dynamic QR code at the counter, identifies the customer as a program member.
Decision
Rules, budget and the customer's profile pick the benefit before the payment closes.
Record
The benefit and each party's contribution are written to a double-entry ledger.
Timing
The benefit becomes part of the purchase, not a later credit the customer may never notice.
Control
Caps, budgets and exclusions apply before the benefit is granted, not after.
Reversals
A cancellation or a return reverses the benefit together with the payment.
Traceability
Each decision keeps a trace of what arrived, what matched and what was applied.
Who it is for
Payment loyalty for banks, issuers and fintechs.
The same logic —signal, decision and record— fits each player in the payment chain in a different way.
Banks
Cashback inside the authorization
The bank decides the cashback on each card purchase, and a participating merchant can co-fund it.
- In production
- With Pomelo, Santander Peru, Banisi and Konfío.
Card issuers and fintechs
Own program or co-brand
Points or cashback are credited to your own program, or the reward is calculated and sent to a partner brand's program.
- Example
- A card that earns miles in an airline's frequent flyer program.
Processors
The benefit as part of the authorization
The processor sends the transaction during authorization, and the benefit is applied in the same payment.
- Integration
- By API, with signed webhooks.
Merchants
Campaigns co-funded with the bank
The merchant pays its share of the benefit and sees exactly how much it contributed in each campaign.
- Example
- A 10% cashback paid 50% by the bank and 50% by the merchant.
How to choose
Five questions before choosing a model.
Card-linked offers and payment loyalty can run side by side. These questions show which one fits each goal.
Does the benefit need to show in the same payment?
If so, the decision has to happen inside the authorization, with a measured latency.
Who funds it?
Merchant-funded offers fit the card-linked model; issuer-funded or co-funded benefits need each share recorded.
How are returns handled?
Check whether the benefit reverses with the payment or in a separate process later.
Who controls the budget?
Caps and exclusions should apply before the benefit is granted, not in a later review.
What happens if the service is down?
The loyalty layer should never block a sale.
With Qurable
Loyalty decided inside the authorization.
Qurable takes the in-payment approach: it decides and applies discounts, cashback and points inside the authorization, in ~150 ms, at your POS, on your card or in your web and app checkout.
At the POS, processor and checkout
The benefit follows the payment cycle: authorize, capture and revert.
Loyalty at the POS and checkoutCashback in the payment
In production with Pomelo, Santander Peru, Banisi and Konfío, paid by the bank or co-funded with the merchant.
See cashback in the paymentEvery contribution in the ledger
The ledger records the bank's share, the merchant's share and the points issued; your team closes each campaign from Qurable Manager. Qurable doesn't move funds.
See the points ledgerFor banks and fintechs
Own program or co-brand: points and cashback in your program or in a partner brand's program.
Loyalty for banks and fintechs
FAQ
What people ask about card-linked offers.
Short answers for loyalty, payments, product and finance teams at banks, card issuers and fintechs.
Card-linked offers are rewards tied to a payment card. The cardholder activates a merchant offer, usually in the bank's app, pays with the card, and receives the reward later as a statement credit or cashback, once the transaction has been matched to the offer. Merchants typically fund them.
A bank or a program operator publishes merchant offers to its cardholders. When an enrolled cardholder pays, transaction data is matched against active offers after the purchase. Matching transactions earn the reward, which is credited days later, and the merchant is billed for the offers redeemed.
Timing and control. Card-linked offers reward a purchase after it clears, through matching and reconciliation. Payment loyalty decides the benefit inside the authorization, so the customer sees it in the same payment, budgets apply before the benefit is granted, and returns reverse it within the same payment cycle.
Usually the merchant, which funds the reward and sometimes pays a fee per redeemed offer. In payment loyalty, the benefit can be paid by the issuer, by the merchant or by both, for example 50% each, with each party's contribution recorded per campaign.
Yes: the merchant pays for the offer and the customer receives it later. The same merchant-funded cashback can also be decided inside the payment, with the merchant's and the bank's share recorded per campaign.
Yes, because they do different jobs. Merchant-funded offers can widen the catalog, while in-payment loyalty gives the bank's own program a benefit the customer sees at once. What matters is that each benefit has a clear funder and that returns and budgets are under control.
Fast enough to fit inside the authorization without delaying it. Qurable makes the full decision in about 150 ms and identifies the member in under 50 ms (p95, server side). If the service does not respond, the sale still goes through; redeeming points does require a connection.
Qurable connects by API, with signed webhooks, to POS, processors and checkouts. It already has live client integrations with Pomelo, MODO, Mercado Pago and Stripe, and cashback inside the payment is in production with Pomelo, Santander Peru, Banisi and Konfío.
Last reviewed
Further reading
Keep reading about loyalty in the payment.
Pages where each part of the in-payment model shows up in the product and at clients.
- ModuleLoyalty at the POS and checkout
Discounts, cashback and paying with points inside the authorization.
- ModuleCashback at the moment of payment
How it is decided, who funds it and how it is controlled.
- ResourceMerchant-funded cashback
How cashback the merchant pays for is decided, split and measured.
- ResourceTransaction Intelligence
What it means for loyalty to decide inside the payment.
- IndustryLoyalty for banks and fintechs
Cashback and points on the card, decided in the payment.
- ModulePoints ledger
Every benefit with its cost, each party's share and real-time liability.
See a benefit decided inside your card's payments.
In a 45-minute technical session we walk you through in-payment loyalty with a case like yours.