What is rebate management? DIY or contract it out?

Posted On: March 19, 2025

Rebate management can be run internally or by hiring a third-party processor. Traditionally, it’s been one and then the other. New rebate programs would launch internally using paper forms, spreadsheets, and check payments. Eventually they outgrow the manual approach and become large enough to attract third party process outsourcers. However, this transition introduces a processing fee which increases the administrative cost of issuing the rebate.    

Fortunately, rebate program management tools have evolved. New technology enables manufacturers, wholesalers, service providers, and energy companies to cost-effectively mobilize and scale rebate programs internally. Rebate promotions can be conveniently configured and published by product people instead of programmers. Rules-based data auditing and workflow administration replaces pushing paper. And API integrations forward approved incentive payment records over to the bank or payment provider. 

That doesn’t mean third parties are being pushed out. What it means is that third-party program managers with value-added services are picking up share. If a firm solely processes claims, then they are effectively instinct.  If they also provide program design, program marketing, and data analytics, then this new technology works to their favor as they become system experts. 

For a demonstration on the Incentit rebate management system, please contact sales@incentit.com.