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BasicPayments1 min

Cashback is a refund by a bank or shop of part of the amount you spent, paid to a card or a bonus account.

In plain words

Banks and shops usually pay cashback as a percentage of a purchase: in certain categories (petrol stations, supermarkets) or during promotions. Each programme has its own terms: a monthly cap, excluded categories (often utility payments, transfers, cash withdrawals) and a payout period. Cashback may come back as money or as bonuses that can be spent only with partners. When you compare cards, look not at the headline percentage but at the cashback cap and the spending requirements.

Example. A card returns 2% on petrol-station purchases, capped at UAH 300 a month: for UAH 1,000 of fuel you get UAH 20, and the UAH 300 cap is reached only after UAH 15,000 of spending (illustrative numbers).

Related terms

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Word of the dayInterchange feeAdvanced

Interchange is a fee paid for each card payment between the acquirer and the bank that issued the card. The Ukrainian law on payment services expressly allows the acquirer and/or the issuer to pay it to each other.

Example. A purchase of UAH 1,000: the merchant receives the amount minus the acquiring fee. The acquirer passes part of that fee to the bank that issued the buyer’s card, and this part is the interchange (the numbers are illustrative; rates depend on the terms).

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