How the 2% ArCa Card Cashback Program Works in 2026

In 2026, Armenia continues to implement the state-backed 2% cashback program for cards issued under the ArCa national payment system. The cashback applies to domestic cashless transactions exceeding 1,000 AMD, with a monthly cap of 60,000 AMD. Payments are disbursed by the 25th day of the month following the billing period. The program excludes international services, financial transactions, crypto-related services, and several high-risk merchant categories.

Why the Program is Exclusive to ArCa Cards

The cashback program operates under a unique financial co-funding model:

1. 1% cashback is funded by Armenian Card (ArCa)
2. 1% cashback is subsidized by the state budget

Armenian Card’s total contribution is capped at 3.5 billion AMD. Should this threshold be exceeded, the government assumes full responsibility for subsequent payouts. This structural model is feasible only because ArCa is the national payment system, with the Central Bank of Armenia and local commercial banks serving as its primary shareholders. International payment systems (such as Visa and Mastercard) do not participate in these domestic budgetary subsidy mechanisms. Consequently, the program is designed strictly for ArCa cardholders. Essentially, the state is subsidizing transactions processed through the national payment infrastructure.

Understanding Cashback and the Accrual Process

Cashback is a partial refund of the purchase amount credited back to the customer's card after the transaction, rather than a discount applied at the point of sale. Under the ArCa framework, the process is as follows:

1. A purchase is made using an ArCa card.
2. Transaction data is processed through the national payment system.
3. The eligible transaction amount is recorded.
4. 2% of the purchase total is refunded to the card the following month.

Example: If your total eligible spending for the month is 100,000 AMD, your cashback reward will amount to 2,000 AMD.

Program Timeline and Deadlines

Cashback is accrued on purchases made from January to December 2026.

Actual payouts are processed from February 2026 through January 2027, by the 25th day of the month following the transaction period.

Payout Schedule Examples:

1. For purchases made in January, cashback will be credited by February 25.
2. For purchases made in July, cashback will be credited by August 25.
3. For purchases made in December, cashback will be credited by January 25, 2027.

Key Program Parameters

Retirees and social benefit recipients will retain their existing 20% social cashback and will receive an additional 2% under this new program.

Before applying for an ArCa card or switching your payment system, it is advisable to compare terms across various banks, including base cashback rates, fees, additional bonuses, and limitations. AFM provides consolidated, up-to-date data on Armenian bank cards, allowing users to weigh the state-sponsored program against market offerings and select the most suitable product.

Eligible vs. Ineligible Transactions

Eligible Transactions (Cashback Applied):

1. Retail stores and supermarkets
2. Restaurants, cafes, pharmacies, and clinics
3. Local online shops and marketplaces
4. Domestic household and everyday purchases
5. Any other services registered as legal entities in Armenia, excluding specific exceptions

Ineligible Transactions (No Cashback):

1. Gambling and bookmaking services
2. Crypto services and exchanges
3. Utility bills and telecommunication services
4. Payments to state and municipal budgets
5. Financial institutions
6. Gift cards and prepaid vouchers
7. Transactions equal to the amount of previously received cashback
8. Purchases from foreign companies and international marketplaces
9. High-risk operations

In practice, this means that international platforms such as Amazon, AliExpress, Booking, and the App Store are excluded from the program, whereas local businesses operating within Armenia are fully eligible.

Defining "High-Risk Operations" and Reasons for Their Exclusion

Payment systems utilize Merchant Category Codes (MCC) to classify businesses and determine the risk level of transactions. Operations typically categorized as high-risk include:

1. Crypto platforms and e-wallets
2. Card-to-card transfers (P2P)
3. Payment aggregators
4. Betting and gambling services
5. Purchase and sale of precious metals
6. Prepaid cards and vouchers

The rationale for these exclusions is straightforward: in such transactions, funds are often not used for actual consumption but rather pass through as transit or can be quickly withdrawn. If cashback were applied here, the program could be exploited for "fund cycling" (churning) rather than its intended purpose of stimulating consumer spending.

Key Questions Surrounding the Program Launch

As this is the first program of its kind in Armenia, several questions remain unanswered during the initial rollout phase.

For instance, is the received cashback subject to any taxation? If a client holds two or more ArCa cards from different banks and performs transactions on both, how will the cumulative cashback be calculated and disbursed? How will monthly aggregate limits be enforced across multiple accounts? Where can customers track their accrued monthly cashback? Will there be a dedicated portal beyond the standard mobile banking apps? What is the dispute resolution and consultation mechanism if a client disagrees with the credited cashback amount?

Another critical factor is the actual financial benefit for customers. By 2026, the Armenian financial market has already established a standard for cashback cards ranging from 0.5% to 1.5%. In December 2025, local banks offered 16 different card products featuring cashback and additional bonuses. Furthermore, these market-based cards operate without time constraints, minimum transaction thresholds, or merchant residency requirements and, notably, without the need to issue a specific ArCa card.

The third aspect concerns potential disruptions to market competition. Some experts argue that state intervention in the cashless payments market, specifically through the unilateral support of a single player, undermines the competitive balance between payment systems. These systems have spent years competing fairly for customers by developing attractive product offers, promotions, and loyalty rewards. The potential consequence of this policy could be a distortion of tariffs and terms across all payment systems, as well as a decline in foreign investors' confidence in the Armenian market.

Who Benefits Most from the ArCa Cashback Program?

1. Daily Domestic Expenses
2. Ideal for users who regularly pay for goods and services at local shops, restaurants, service centers, and Armenian online platforms.
3. Family and Household Spending
4. With consistent monthly expenditures, the cashback effectively reduces net costs without requiring any change in spending habits.
5. Retirees and Benefit Recipients
6. This segment benefits the most, as the additional 2% stacks on top of the existing 20% social cashback program.

Who the Program May Not Suit

Users whose primary expenditures involve international services, financial transfers, crypto-platforms, and online services based outside of Armenia.

Key Program Limitations

1. Geographic restriction: Valid only within the territory of Armenia.
2. System exclusivity: Works exclusively with ArCa-branded cards.
3. Transaction exclusions: Does not apply to financial or high-risk operations.
4. Capped rewards: Subject to monthly and per-transaction limits.
5. Delayed payouts: Credits are issued with a lag, appearing the following month.

Frequently Asked Questions (FAQ)

1. When is the ArCa cashback credited? By the 25th day of the month following the month in which the purchases were made.
2. Is cashback earned on online purchases? Yes, provided the merchant is registered in Armenia.
3. Can I receive cashback for purchases made abroad? No, the program applies exclusively to transactions within Armenia.
4. Is this cashback combinable with other programs? For pensioners and social benefit recipients, yes—the 2% is added to the existing social cashback.
5. What happens in case of a refund? Refund transactions are excluded from the cashback calculation.
6. Can I exceed the monthly limit? No, the maximum cashback is capped at 60,000 AMD per month.

Why the State is Implementing This Program

According to data from finport.am, ArCa's market share dropped to 16.3% by October 2025, as both banks and customers increasingly shifted toward international payment systems.

The cashback program aims to achieve several objectives simultaneously:

1. Stimulating domestic cashless payments.
2. Supporting the national payment infrastructure.
3. Increasing the transparency of monetary circulation.
4. Reducing the share of cash transactions in the economy.
5. Strengthening ArCa’s competitive position.

For the user, this represents a 2% refund; for the government, it is an investment in its own financial ecosystem.

Conclusion

The 2% ArCa card cashback in 2026 is an economic tool designed to stimulate domestic cashless spending and bolster the national payment infrastructure.

If your spending is concentrated in shops, service providers, and online platforms registered in Armenia, this program can effectively reduce your daily expenses. However, if your primary payments are linked to international platforms, crypto-services, or financial operations, no cashback will be accrued. This distinction forms the core logic of the entire program.