What is cashback

cashman007

people keep telling me about it but what is it and how does it work

answers on a postcard or a MSE forum post

Avoriaz

Cashback is a service where you obtain cash when paying for other goods with a debit card. It is the equivalent of withdrawing cash from an ATM (cash machine) and is typically offered by supermarkets and some other retailers.

For example, if you are in Tesco buying your groceries and your bill comes to £32.25 you can pay this with a debit card and ask for £20 cash back.

The cashier will give you £20 cash and your debit card (bank account) will be charged £32.25 plus £20 = £52.25.

The supermarkets like cashback as it reduces the amount of cash that they have to bank as they are charged for banking cash. They do not normally charge a fee for cashback as it benefits them.

http://en.wikipedia.org/wiki/Debit_card_cashback

ormus

theres also the other form of cashback, which is when retailers offer you some cash back after a purchase. it usually involves a process making a claim, filling in forms and sending them off at/by a certain date.
beware that a lot of these are scams. esp mobile phone companies.
and a lot of them have silly rules. if you dont claim by the rules you loose your cashback money.
the well known major brands are ok though. i just got my 15 quid back off canon for a printer.

LouBlue

cashman007 wrote: »

people keep telling me about it but what is it and how does it work

answers on a postcard or a MSE forum post

Do you mean cashback sites like Quidco?

This site is mentioned a lot of MSE. You register with them and when you are switching household insurance or car insurance for example, or after a cd or dvd, if you purchase it through the site, you can get cashback.

http://www.quidco.com/

Cashback shopping.

• When shopping online, click through to a shop via a ‘cashback’ site and it'll give you a small proportion (usually around 2% but up to 10%) of what you spend back in cash. These are advertising sites, paid for by providing leads to retailers; to encourage traffic, they split some of their revenue with you in the form of cashback.
  How much? Up to £1,000 a year if you’re a serious online buyer.
  How do I do it? Use the Top Cashback Sites article.

sodamnfunky

Alternatively, if you give me £50, I will give you £20 cashback....:whistle:

Any

Or - as it is posted on credit cards thread - the OP might mean cashback on credit card payments???

Basically - when you pay for goods by credit card, the retailer have to pay a fee to the credit card company for having a credit card terminal to be able to take payments. So the credit card companies don't only make money on the interest you pay if you don't pay off your bill in full, but they also make money on this fee they charge the retailer. Because they want you to pay by credit card rather they by your debit card wherever possible, they offer you cashback for this. They charge let's say 3% of a transaction value and they give you back 0.5% for example.

Glitzkiss

Any wrote: »

Or - as it is posted on credit cards thread - the OP might mean cashback on credit card payments???

Basically - when you pay for goods by credit card, the retailer have to pay a fee to the credit card company for having a credit card terminal to be able to take payments. So the credit card companies don't only make money on the interest you pay if you don't pay off your bill in full, but they also make money on this fee they charge the retailer. Because they want you to pay by credit card rather they by your debit card wherever possible, they offer you cashback for this. They charge let's say 3% of a transaction value and they give you back 0.5% for example.

Actually I think the OP was posted either in DT or the Arms section of the forum first hence the facetious answers from the usual suspects

Any

Glitzkiss wrote: »

Actually I think the OP was posted either in DT or the Arms section of the forum first hence the facetious answers from the usual suspects

I was thinking why the move post didn't say where it is moved to... Never seen the other side - receiving side of a moved thread. Silly me..:rotfl:

LouBlue

Glitzkiss wrote: »

Actually I think the OP was posted either in DT or the Arms section of the forum first hence the facetious answers from the usual suspects

Hey, my post was sensible! :D

Glitzkiss

LouBlue wrote: »

Hey, my post was sensible! :D

Sorry Lou, I've just realised both you and Mr. A posted sensible answers and only SDF posted a cheeky one

Not what I expect of either you or Avoriaz

LouBlue

Glitzkiss wrote: »

Sorry Lou, I've just realised both you and Mr. A posted sensible answers and only SDF posted a cheeky one

Not what I expect of either you or Avoriaz

Yes, sorry about that, must do better.