Using Cashback at the checkout on a credit card

Lupinoid

I'm just wondering what happens when you get cashback from a store (say tesco, boots, spar, co-op etc) whilst using a credit card?

I know that its bad to take out cash from an ATM from a credit card account as it hikes up your charges as its a cash advance and you get charged for this but I was wondering if you would get charged this if you get cashback at the checkout instead; as its added to your total and presumably regesters on your bill as a normal store purchase.

I'm asking because we're in a bit of a pinch money wise until next month we're stuck for cash and whilst we're happy to use our credit card for the essentials till then and pay it off next month we will need cash for some things and we really don't want to take it out from an ATM and mess up our rate on the credit card.

If its ok to get cashback during a store purchase and it doesn't register as a cash advance with the credit card company (lloyds tsb) then I'm saved, if not I'm in a bit of a situation.

m00m00

most stores won't do cashback on a credit card
the only ones I have heard of who do, and this is only anecdotally, are Wilkinsons.

Eonel

As above, I'm not aware of anyone that allows cash back from a credit card. And if they did I'd be pretty sure it would go through your credi card account as cash anyway.

It does cost severals pounds each time you get cash out of an ATM on your credit card. The cash attracts higher interest for longer + a cash withdrawal fee. But it does not mess up the rate on your whole credit card balance as your original post could imply.

YorkshireBoy

Lupinoid wrote: »

I'm asking because we're in a bit of a pinch money wise until next month we're stuck for cash and whilst we're happy to use our credit card for the essentials till then and pay it off next month we will need cash for some things...

If you have friends and family who would otherwise shop with cash, then offer to go with them and make their purchase(s) on your card and have them pay you instead.

Only a short term fix to your problems though!

exel1966

Eonel wrote: »

As above, I'm not aware of anyone that allows cash back from a credit card. And if they did I'd be pretty sure it would go through your credi card account as cash anyway.

It does cost severals pounds each time you get cash out of an ATM on your credit card. The cash attracts higher interest for longer + a cash withdrawal fee. But it does not mess up the rate on your whole credit card balance as your original post could imply.

Wilkinson permit cashback at the till and because they put it through their tills as a purchase no cash fees are charged by the card company and any interest will be charged at a purchase rate rather than cash advance rate. AFAIK there are no other companies which do this.

opinions4u

exel1966 wrote: »

Wilkinson permit cashback at the till and because they put it through their tills as a purchase no cash fees are charged by the card company and any interest will be charged at a purchase rate rather than cash advance rate. AFAIK there are no other companies which do this.

This is quite an interesting one.

So basically next time I pick up two bottles of Fairy Liquid on offer I could also get £50 cash back and top up my Tesco Credit Card Clubcard points along the way?

Great!

Eonel

exel1966 wrote: »

Wilkinson permit cashback at the till and because they put it through their tills as a purchase no cash fees are charged by the card company and any interest will be charged at a purchase rate rather than cash advance rate. AFAIK there are no other companies which do this.

That is an interesting one. As you know the credit card companies charge the merchant several percent for using the credit card, so don't know how Wilkinsons can afford to do this.

For stoozers, fee-free cash off a credit card = free margin profit. Need to find my nearest Wilkinsons.....

YorkshireBoy

Eonel wrote: »

...don't know how Wilkinsons can afford to do this.

They'll probably have comparable costs (and greater risk?) in handling cash. But, I suspect they'll be breaking the terms of the agreement with their merchant acquirers

For stoozers, fee-free cash off a credit card = free margin profit. Need to find my nearest Wilkinsons.....

I suspect there will be small limits imposed (£50 here and there)?

sharpy2010

Visa or Mastercard would be VERY interested to hear about Wilkinsons doing this...

claire16c

That is weird to hear Wilkinsons do that. I could rack up Nectar points if I used my Sains credit card in there and got cash back each time!

Ben8282

As far as I am aware you cannot get cashback with a credit card.

The information about Wilkinsons is interesting though. Do they charge and what is the limit? Anybody know?