There are two ways to pay for rewards: Pay As You Go and Post-Pay.

Pay As You Go (recommended)

Pay As You Go is the default payment option for rewards. You will have a rewards balance where funds are drawn from each time a reward is redeemed. You’ll be able to choose a refill amount and when your rewards balance gets low it will automatically refill. An invoice and receipt will be automatically sent to the email address(es) on file for any payment transaction in your account.

How it works

Once you put your payment method on file, you can add funds to your reward balance. You can choose however much you would like to add to start. If you don't add any funds to your rewards balance, then your payment method will automatically be charged upon the first reward redemption.

Once you add funds, you will choose your automatic refill amount. Once the balance in your account gets below 20% of your selected refill amount, your payment method will be charged for the refill amount, to ensure your rewards balance doesn't run out.

Example: You put your payment method in Nectar, select “Add Funds”, and add $600 to your account to get started. At this point, your employees will be able to redeem rewards in Nectar. After you add the $600 to your account, you also choose a refill amount of $1000.

As your employees start to redeem rewards, your rewards balance will go down corresponding to the redemption amount. Once your rewards balance gets below $200 (20% of your selected $1000 refill amount) to say $180, your payment method on file will be charged for the selected automatic refill amount of $1000. This would leave you with $1180 in your rewards balance.


You will need to work with your Nectar account manager if you decide this payment option is the best route for your team. A one-time 20% security deposit (minimum $100) of your estimated annual reward spend will be required in order for reward redemptions to be enabled in your account. Your payment method in Nectar will then be charged on the 1st of each month for all rewards redeemed in the prior month. It’s your money, so at any point, if you move away from Nectar it’s fully refundable.

If your organization is unable to put a payment method in Nectar then work with your account manager to set up paying for rewards via check, ACH, or wire. Post-Pay is only available for clients who are on Nectar's Plus plan.

How it works

You will work with your Nectar account manager to determine your estimated annual reward spend. After that amount is determined, your payment method in Nectar will be charged that amount. Your payment method in Nectar will then be charged on the 1st of each month for all rewards redeemed in the prior month.

Example: During the Nectar implementation process, you will put a bank account on file with Nectar, and a 20% security deposit of your estimated yearly reward spend is charged. After you launch Nectar to your team, they will start redeeming their points for rewards and those reward amounts will be tracked in your Nectar account. On the 1st day of the following month, you will your payment method will be charged for the total redemption amount in the prior month, i.g., all of October’s redemptions will be billed on November 1st.

Reward payment processing fees

Credit card processing fees on reward payments are 3.5% + 40 cents. This fee is only incurred on reward payments and not subscription payments. If you want to avoid these fees your organization will need to pay by check, wire, or ACH. Credit card processing fees are non-refundable.


To help prevent fraudulent transactions, your bank may only allow debits from specific ACH IDs. ACH IDs are unique identifiers assigned to entities by their banking institutions. If your bank account only allows debits from pre-approved ACH IDs, you will want to ensure that you have whitelisted our two company ACH IDs with your bank:

1800948598 - NECTAR HR

4270465600 - NECTAR HR

Any dispute fees will need to be paid for your company to keep your account active with Nectar.


Pay As You Go:

Q: What if my rewards balance is above 20% of my prepayment block and an employee redeems a reward worth more than what’s left in the rewards balance?

A: Your payment method will be charged for the value of the reward redeemed + your selected refill amount. Example: Your selected refill amount is $500 and your rewards balance has $120 remaining. If an employee redeems a gift card for $200, your payment method will be charged the remaining $80 + refill payment of $500 = $580.

Q: What if I don't add funds after adding my payment method?

A: As soon as someone redeems a reward your payment method will be charged for the reward amount plus your selected refill payment amount.

Q: What happens if my payment method fails or gets declined?

A: You will receive an email notification and employees will not be able to redeem rewards until the payment succeeds.

Q: What if we decide to cancel Nectar and still have a reward balance?

A: You will be refunded the amount is remaining in your rewards balance.


Q: What if my company's monthly redemptions exceed the 20% security deposit?

A: Once your company's total rewards redemptions reaches the 20% security deposit amount in any given calendar month, reward redemptions will be disabled in your Nectar account. Your company's redemptions can be turned back on by submitting a payment for the amount of the unpaid rewards.

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