Getting Cashback at Supermarket Till on 0% Card

molerat

I think most of the establishments that do this will have unlinked tills and card machines, the till asks for £10 for the goods, which is what will be accounted in VAT, £30 goes onto the C&P machine and £20 comes out of the till.

lisyloo

Thanks.
I don't really see a bit issue here.
The card issuer gets their %.
The customer gets their cash.
The company could potentially lose money from dishonest employees if they have an unlinked system, but they have the benefit of getting rid of their cash which costs them money to bank and is a risk to have on the premises.

zerog

lisyloo wrote: »

Thanks.
I don't really see a bit issue here.
The card issuer gets their %.
The customer gets their cash.
The company could potentially lose money from dishonest employees if they have an unlinked system, but they have the benefit of getting rid of their cash which costs them money to bank and is a risk to have on the premises.

Well what is basically happening is that Person A wants to pay with cash, and Person B wants to pay with card. So instead of Person A paying the bartender, he gives his twenty to Person B, who puts everything on a card.

This is what you do every time you go to a restaurant and you split the bill when not everyone wants to use card.

The issue is that the credit card companies don't want cardholders to use their cards in this way, because they can charge the cash fee and cash interest rate straight away if you use an ATM to get cash from your card

Lazyloki wrote: »

I did this last year. Bought around £3k of Tesco gift cards which went onto a 0% credit card which then freed up money from my current account (salary etc) to max out my ISA savings allowance nice and early in the year. Bear in mind that nowadays you can buy pretty much anything from Tesco (direct), not just your food shop.

You didnot free up money from your current account unless you were actually going to spend the £3000 straight away. The only reasons to do this would be if you needed the credit card points/miles, or there was a time-limited offer on the 0%, the gift cards, or a minimum spend requirement.

Ebe_Scrooge

lisyloo wrote: »

... they have the benefit of getting rid of their cash which costs them money to bank and is a risk to have on the premises.

Is that not the nub of this ? It costs them money to bank cash, which is why they give cashback on debit cards - the debit card fee is less than the banking fee.

But the credit card fee is more than the banking fee, which is why they generally don't give cashback again CCs ( with the odd exception / workarounds previously discussed ).

Certainly when I worked on a till, the till itself would prompt for cashback when a debit card was inserted, but not when a credit card was used.

dzug1

lisyloo wrote: »

Just wondering but don't they have to pay 20% VAT on that?
If that's correct then how can it possibly be in their interests to do that?

A lot of food is zero VAT

iAMaLONDONER

dzug1 wrote: »

A lot of food is zero VAT

Not at restaurants!

dzug1

iAMaLONDONER wrote: »

Not at restaurants!

True - I was thinking of supermarkets




Instruction to self - read more carefully next time:o