With drawing cash on a credit card.

Rupert_Bear

I went into Wilkinsons today and paid for my items and at the same time the assistant asked if I wanted cash back. I explained this was a credit card but she explained they will allow me to withdraw cash on the card.

I have never withdrawn cash on credit cards but was just surprised being offered the option.

scottishblondie

As far as I know it isn't officially possible - unless they put the cash thru as some sort of purchase? IMO the assistant didn't know what she was talking about.

Biggles

I have used this, on a regular basis, though a few years ago now. It suited me fine as it saved a trip to the ATM, delayed my paying for the cash till the next month and I got cashback on the amount!

I imagine it revolves around the store putting it through as a purchase; presumably it's worth their while if the CC charge is less than the charge for banking the cash, which it may well be.

McKneff

It may be worth while for the store but if you do this you are paying interest on the cash withdrawn from day one.

DD265

McKneff wrote: »

It may be worth while for the store but if you do this you are paying interest on the cash withdrawn from day one.

And at least with my card, the interest rate for cash is significantly higher than purchases!

Pound

McKneff wrote: »

It may be worth while for the store but if you do this you are paying interest on the cash withdrawn from day one.

It depends on whether the charge is recorded as a cash withdrawal. It's not something I've seen except at post offices.

I think it's more likely that Wilkinson's are just recording it as a normal purchase where they will pay the related fees (2% I think).

If this is true it would be an excellent way of [STRIKE]ab[/STRIKE]using the 0% interest offers that some credit card companies offer. Just ask for the maximum cashback and stick the money in a savings account until the interest-free offer ends.

Rupert_Bear

I went back into Wilkinsons today spoke to another advisor and the advisor confirmed they will do cash back on credit cards but I got the impression it was only certain ones.

lisyloo

It may be worth while for the store but if you do this you are paying interest on the cash withdrawn from day one.

Only if the store put it through as a cash advance.
Not sure but they might be putting it through as a purchase.
It's not just about charges it's about security e.g. it costs money to store and carry cash in secure vans.
They might even be breaking the terms of their merchant agreement but that's not beyong the realms of possibility especially as customers are unlikely to compplain.

Biggles

lisyloo wrote: »

Only if the store put it through as a cash advance.
Not sure but they might be putting it through as a purchase.
It's not just about charges it's about security e.g. it costs money to store and carry cash in secure vans.
They might even be breaking the terms of their merchant agreement but that's not beyong the realms of possibility especially as customers are unlikely to compplain.

That's what I thought at the time; I certainly wasn't paying interest on a cash advance, so both sides of the arrangement were happy!