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Cashback

I understand the idea that you should never withdraw money from an ATM with your credit card due to the insane rates of interest. However, if i were to say buy £7 worth of shopping from the supermarket and then get £30 cashback surely that would just be billed as £37 spent at asda or wherever? Therefore i would stand to not inccur the charges that i would withdrawing that same £30 cash from an ATM?

I realise this is probably a simple yes or no however, it's better to be safe than sorry!

Comments

  • Basically yes, £30 cashback would be treated as a purchase. However, IME you only get cashback offered on a debit card.
  • td_007
    td_007 Posts: 1,212 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    wilsdon wrote: »
    I understand the idea that you should never withdraw money from an ATM with your credit card due to the insane rates of interest. However, if i were to say buy £7 worth of shopping from the supermarket and then get £30 cashback surely that would just be billed as £37 spent at asda or wherever? Therefore i would stand to not inccur the charges that i would withdrawing that same £30 cash from an ATM?

    I realise this is probably a simple yes or no however, it's better to be safe than sorry!

    You do not have the option to get cashback on credit cards - you have the option only on debit cards.
  • ic
    ic Posts: 3,488 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Cashback is also treated differently when it is done too, some backs merge it and show it as part of the one overall transaction, others will show it separately. So if you could do cashback on a credit card (which afaik you can't), they would most likely charge you the same as it would have been from a cash machine - handling fees, interest and no interest-free grace period for paying in full.
  • lisyloo
    lisyloo Posts: 30,094 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Yes, depends how it is itemised.
    I have bought John Lewis vouchers in waitrose and they are classified as a purchase, but I could not obviously guaranteee that for all vouchers in all comapnies.
  • hippey
    hippey Posts: 849 Forumite
    Retailers have to have the aquirers authorisation to give cash back or cash advances, gift vouchers are not normally redeemable for cash so would attract a purchases process not cash.
    These are my thoughts and no one else's, so like any public forum advice - check it out before entering into contracts or spending your hard earned cash!

    I don't know everything, however I do try to point people in the right direction but at the end of the day you can only ever help yourself!
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