Here is a breakdown on how cashback rewards are billed.

Cashback rewards are partial refund on orders. This means that when you issue a refund through Shopify Payments, the refunded amount is deducted from your next available payout.

Initially, the refund status will be marked as Pending for up to 2 business days, during which the funds are processed back to your customer. However, due to varying processing times at your customer's bank, it might take up to 10 business days for the refunded amount to be received.

Refunds are processed in accordance with your payout schedule and are typically scheduled for the next payout.

Transaction fees

When processing a refund, no additional transaction fee is incurred. However, the original credit card transaction fee isn't refunded to you when issuing a refund.