Does this counts as cash advance

joshken

Hi,

I have a 0% purchase credit card and I make a purchase (£250) at Tesco's including a £200 cashback at the checkout. Would the £200 be counted as cash advance by the Credit card company. I guess the credit card bank only looks at the total purchase made and not the individual items purchased or whether the purchase included a cashback or not. Afterall they (that is the credit card company) do not get a copy of my receipt from Tesco's...just the total amount to be charged to my CC account.... isn't this true?
I'm asking this as any cash advances would be charged at 22% by the CC bank. And any repayments from me would first wipe-off the cash advance and next the purchase amount from the credit card.

Please if anyone could clear me of this (mis?)understanding would be grateful.

HappyMJ

A £200 cash back....on a credit card...at Tesco.

lisyloo

You cannot (generally) get cashback on credit cards.
Cashback is for debit cards.

I have heard that wilkinsons will do cashback on credit cards.
I believe this might break the terms of their merchant agreement with Visa/mastercard, but anecdotally I've heard they let it go through and I believe it comes out as a purchase, but I would recommend checking with a small amount first as they can always change their policy any day.

[Deleted User]

You can't get cashback on a credit card, so it's a moot point.

Having said that, there are tales of Wilkinsons doing it from time to time, in which case it goes through as a purchase. Breaks the t&cs a bit, but that's more down to the retailer.

EDIT - must type quicker...

chattychappy

Deleted_User wrote: »

You can't get cashback on a credit card, so it's a moot point.

Hmm... then it wouldn't be a moot point (nothing to moot about)?? Perhaps it's a mute point..

I once knew a very handy bureau de change "somewhere in Asia". Simple rates displayed. No commission if changing cash. If using credit card, it was 1% to put it through as a cash transaction, or 2.5% to put it through as a purchase. Up to you, sir!

Those were the good old days.

[Deleted User]

chattychappy wrote: »

Hmm... then it wouldn't be a moot point (nothing to moot about)?? Perhaps it's a mute point..

Dammit. You're right.

I may have been confusing points with swans.

dzug1

Even with debit cards a £200 cashback is unlikely - I thought if was £50 max, though it may well vary by supermarket.

chattychappy

Deleted_User wrote: »

Dammit. You're right.

No I've changed my mind.

It it is a moot point because you can still argue about the principal even though it's hypothetical. When I was a law student, there were endless (boring) mooting competitions where pointless points (!!) were argued by kids who thought they were rumpole.

[Deleted User]

chattychappy wrote: »

No I've changed my mind.

:undecided Look. I can cope with being right. I can cope with being wrong. I cannot cope with being right, wrong, then right again. I am not a ping pong ball.

joshken

dzug1 wrote: »

Even with debit cards a £200 cashback is unlikely - I thought if was £50 max, though it may well vary by supermarket.

Thank you everyone for englighting me.
£200 as cashback was just an example, as I wanted to get my point across of whether this could be done as I did not know Tesco's or retailers had limits for cashback and merchant agreements with CC banks.
Always thought that pulling out a card from my purse and stickin in the machine was all straight forward whether be it a VISA/MASTERCARD debit/credit card.

lisyloo

Always thought that pulling out a card from my purse and stickin in the machine was all straight forward whether be it a VISA/MASTERCARD debit/credit card.

Absolutely not.
A debit card is your money.
A credit card is borrowed money.

There are major differences when it comes to the Consumer credit act, interest for borrowing and even fraud (because it matters whether it's YOUR money that's stolen or the lenders money).
I recommend you read some of the articles on this site.