> +1. I’ve often wondered how these cashback services like the ones you mentioned, or, for example, the restaurant ones like aadvantage dining work. Do the affiliates get all your transactions? (I really hope not). Or, do the affiliates have agreements with the cc processors to flag transactions on their side?
Banks and lenders are heavily regulated in this area and often times the financial institution has absolutely no insight into the line-item level of the purchase. That data is at the prerogative of the merchant to disclose.
If $RESTAURANT offers cash back on certain purchases made with them on a certain card, the merchant already has the data of the purchase and can determine if purchase qualifies for some cash back and notify the lender (at the expense of $RESTAURANT). Cards also follow patterns in the number scheme which would allow a merchant to determine card type and map that to current incentive offerings. By card type I mean more than just credit provider, down to the specific type of card (i.e. Sapphire Reserved vs Sapphire Preferred, etc).
Banks and lenders are heavily regulated in this area and often times the financial institution has absolutely no insight into the line-item level of the purchase. That data is at the prerogative of the merchant to disclose.
If $RESTAURANT offers cash back on certain purchases made with them on a certain card, the merchant already has the data of the purchase and can determine if purchase qualifies for some cash back and notify the lender (at the expense of $RESTAURANT). Cards also follow patterns in the number scheme which would allow a merchant to determine card type and map that to current incentive offerings. By card type I mean more than just credit provider, down to the specific type of card (i.e. Sapphire Reserved vs Sapphire Preferred, etc).