Confused what is the difference between discount promos and cashback? Here's Jaka's discussion about the difference between cashback and discounts.
Lately you like are you confused?, with various promos given various Fintech or Merchant? Curious no more profitable cashback or discount?
Well, for those of you who are wondering about this, Jaka has the answer, you know!
After you read this Jaka article, you will not be confused anymore to be able to distinguish between cashback and discounts.
Well, see Jaka's explanation below, come on!
What is Cashback with Discount? Same or different?
In the world of economy in particular fintech, discount terms and cashback it's moderate trendinglately this.
This is because several fintech companies such as Ovo, Go-Pay or Dana are competing to promote cashless society by giving discounts and cashback.
For some people who don't really understand or lay to the discount terms and cashback, really must read this explanation.
The explanation that Jaka gave won't complicated or use difficult economic terms, how come.
What is a Discount?
Simply, discount means discount provided by online and offline merchants.
There is no limit to what items can and cannot be discounted. Any item can get a discount.
Usually, discounts are given or held within a certain period of time, it can be 1 day, 1 week, 1 month or even 1 hour.
It all depends on the store or seller who gives you a discount.
For example, you want to buy electronic goods in one of the online buying and selling applications, if there is a promo, the discount percentage will be written down.
For example, you want to buy a USB HUb for IDR 45,000 and get a 53% discount. That means, you only need to pay RP21,250 only!
Jaka is sure you must be familiar with the discount system, right? Easy to understand, right?
What's that Cashback?
How about cashback? Are you familiar with this term? Don't understand what it is cashback?
Cashback is a refund (whether in cash, non-cash, vouchers, points and others) on the things you buy.
As Jaka mentioned, if a discount means a direct discount, then cashback you SHOULD pay for goods in cash full only then get a "refund" of the goods you bought.
For example, GOPAY is having a promo cashback 40% for any food purchase at Yoshinoya, with a maximum cashback IDR 20,000.
Well, if you buy food at Yoshinoya for a total price of IDR 80,000, GOPAY will give you cashback IDR 20,000 in the form of a voucher to you.
So, you didn't pay Rp. 60,000 because it was deducted cashback IDR 20,000. You still pay IDR 80,000 for the food you buy at Yoshinoya.
How? explain what it is cashback?
Equation of Discount and Cashback
In general, there are some similarities between discounts and cashback that you should know!
Both get a discounted price in a predetermined amount.
Can be found in various stores on line and offline, including online buying and selling sites alias e-commerce.
Both have a period of time in their promotion. Discounts and cashback usually does not apply all the time.
Difference between Discount and Cashback
If you are still confused about what cashback and discount are, please see an explanation of the difference between the two in the table below.
| Discount | Cashback |
|---|---|
| Immediately feel the discount | Discounts are given after you pay in full first |
| As long as the item you want is labeled with a discount, then you will get a discount | In certain cases, cashback binding nature. For example you get a voucher cashback in Store A, then you can only use the voucher at Store A |
| Usually the discount applies after a certain minimum spend. Like, second purchase get 30% discount | Since you have to pay in full first, it usually takes some time to get cashback promised |
| Discounts usually have a larger discount with no limit or maximum discount. For example, 90% discount, then the item will actually be discounted 90% of the original price | Most of the cashback has a maximum limit. For example, cashback 60% maximum IDR 30,000. That means, even if you spend up to 1 million, cashback what you receive is still only IDR 30,000 |
| Discounts are always in the form of discounts | cashback aka refunds can be in various forms such as vouchers, points, or in other forms such as credit. Depends on the policy of the company that provides cashback |
Still confused no guys, the difference between cashback and discount? Indeed, the difference between the two thin aliases are not very different.
But it's good enough to know the difference between the promos you like pass over and over again on your social media?
Thus the discussion from Jaka regarding the difference between cashback and discounts that you may often hear and see.
Already no I'm confused now, what's the difference? Are you a discount team or cashback here?
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