A loyalty rebate is a rebate paid to a buyer or customer as a reward for continued or exclusive purchasing from a specific supplier - typically tied to share-of-wallet, category exclusivity, or multi-year commitment.
How loyalty rebates are structured
Common structures include share-of-wallet thresholds (e.g., 70% of category spend), multi-year commitment premiums, and category-exclusivity bonuses. Loyalty rebates typically layer on top of standard tier rebates.
The regulatory consideration
