Rebates are an effective tool used by issuers to incentivize customers to spend and compete within the commercial card environment. The Rebate, also referred to as revenue sharing, is a monetary payment to the client by the issuer.
Rebates take many forms, including sign on bonuses, early pay incentives and tiered rebates, where the amount of the rebate depends on a specific monetary spend achieved by the commercial card customers. The tracking, issuance, accounting, and audibility of Rebates is essential to a successful commercial card program. Payment tracking is also critical, ensuring that clients are paid on time, backed by a full audit trail of the basis for the payment. Additionally, the rebate system is also a source of spend information and is also useful to sales and customer relationship organizations as well, to better advise and prompt customers on the agreed upon sales goals.