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Credit card cashback

Hello,

Whenever I visit my local shop which is one of the smaller co-ops, when paying by credit card I noticed that I'm often offered cashback. I'm pretty sure it isn't a mistake as sometimes I have my card in the terminal and they will ask me and then when they click on the register my card will start processing.

I (assume) I will be charged the same as a cash withdrawal but I've never wanted to try it to see the risk. One thing I have noticed however is that on the chip of my credit card it states:
Domestic cashback not allowed
International cashback not allowed

Both of which are stated in the Mastercard "application" on the card itself (which can be retrieved with a card reader and certain software). So I assume even if I were to request cashback it would be declined as soon as it started to process my card?

Thanks,

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,383 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    It would be processed as part of the purchase transaction, so would attract the purchases rate. So would also bypass any 'no cash withdrawal' block on your card.

    The retailer shouldn't be doing it, but it's not unknown.
  • pqrdef
    pqrdef Posts: 4,552 Forumite
    It would be processed as part of the purchase transaction, so would attract the purchases rate. So would also bypass any 'no cash withdrawal' block on your card.

    The retailer shouldn't be doing it, but it's not unknown.
    But then the shop is going to pay the fee. Fees on credit card purchases are quite expensive for shops. Unless their margins are ridiculous, they're going bust soon.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • [Deleted User]
    [Deleted User] Posts: 35,383 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    But it also saves them the cash handling fees at the end of every day. Which may well be more than the card fee.
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