Referral code terms explained: a plain English glossary

Referral offers are full of specific wording, and the small print is where most problems begin. This glossary explains the terms you are most likely to see, in plain English, so you can read an offer with confidence before you sign up.

Who is involved

Referrer. The existing customer who shares the code or link.

Referee. The new customer who signs up using it. This is usually you.

Brand or programme owner. The company running the scheme and setting the rules.

What you have to do

Qualifying action. The thing you must do before the reward is paid, such as a first purchase, a booking, a deposit or identity verification.

Qualifying spend or deposit. The minimum amount you must spend or deposit. Look at whether fees, taxes and refunded items count towards it.

Eligible customer. The type of person who can claim the offer, which usually means someone who has never held an account with the brand.

New customer. Often defined strictly. It may mean no previous account under your name, email, phone number, payment card or address.

First stay, first order or first booking. The reward applies only to your first transaction of that kind.

What you receive

Credit. A balance on your account that you can spend with that brand. It often cannot be withdrawn as cash and may apply only to certain products.

Cashback. Money returned to you after a purchase. It may arrive as credit, a bank payment or a voucher.

Discount. A reduction in the price, either a fixed amount or a percentage.

Voucher. A code or card with a set value that can be used at the brand or with a partner.

Points. A loyalty currency that can be redeemed for rewards, often with an exchange rate and an expiry.

Timing

Expiry date. The date after which the offer or the reward stops being valid. Check whether the reward itself expires after it is paid, for example credit valid for 90 days.

Hold period or cooling off period. A waiting time before the reward is released, used by brands to confirm that the purchase is genuine and has not been refunded.

Pending. A reward that has been recorded but not yet released.

Deadline. The date by which you must complete the qualifying action.

What can go wrong

Clawback. When the brand takes a reward back, for example if you cancel, return the product or close the account within a set time.

Forfeit. When you lose the reward because you did not meet a condition.

Stackable. Whether the reward can be combined with other offers. Many cannot.

Self referral. Referring yourself, or members of your household, which most programmes ban.

Territory restrictions. The countries or regions where the offer is valid. Check these before you sign up, particularly for travel and financial products.

Right to amend or withdraw. A clause that lets the brand change or end the offer at any time. It is why you should confirm the current terms before relying on any offer.

Reading the terms efficiently

You do not have to read every word, but check these five points:

1. Who is eligible
2. What you need to do, and by when
3. What you will actually receive, and in what form
4. When the reward is paid
5. What would cause you to lose it

Where to see this applied

Each code on Referral CodeFinder lists the offer, the redemption steps, the terms and the date we last verified it. See our Outsite referral code for an example. If you are unsure how the pieces fit together, read how referral programmes work.