Cashback on Cashback Credit Cards

daveshoelace

Hi All

I have a cashback credit card on its way and had a question.

Can I get cashback on it in the more traditional sense, ie. I do my shopping at tescos, pay for it and draw £20 of cash from the card at the same time.

And if so, would my 1% cashback be on just the purchase, or also that £20 I withdrew? If so it seems to make more sense to just draw all my walking around cash out this way then at an ATM.

cheers

YorkshireBoy

You can't get "traditional" supermarket checkout cashback on a credit card.

daveshoelace

YorkshireBoy wrote: »

You can't get "traditional" supermarket checkout cashback on a credit card.

Ahhhhhhh, that makes sense. Thought I was on to something there, doh.

cheers muchly

KTF

Taking cash out on a credit card is normally classed as a cash advance and is excluded from any cashback incentive.

CannyJock

KTF wrote: »

Taking cash out on a credit card is normally classed as a cash advance and is excluded from any cashback incentive.

Yup, what they said - and it is subject to very high interest as someone has recently posted where they put the wrong card in the ATM and withdrew cash.

moonrakerz

daveshoelace wrote: »

Can I get cashback on it in the more traditional sense, ie. I do my shopping at tescos, pay for it and draw £20 of cash from the card at the same time.

Just think about it - shops pay a percentage of each transaction to the card company, say 3%.
You ask for £50 "cashback"; Tesco gives you £50 cash, but has to pay £1.50 to the card company.

So to give you £50, Tesco is £1.50 out of pocket - good economic sense !

leicsmarkyr

Incorrect the fee is only charged on the purchase - there is no fee on the cashback element.

So
Goods = £10
Cashback = £50
Total = £60

Retailer gets £60 initially straight into their bank account. But at the end of the month, they are charged 30p (based on 3% commission) for that transaction.

moonrakerz

leicsmarkyr wrote: »

Incorrect the fee is only charged on the purchase - there is no fee on the cashback element.

So
Goods = £10
Cashback = £50
Total = £60

Retailer gets £60 initially straight into their bank account. But at the end of the month, they are charged 30p (based on 3% commission) for that transaction.

Rubbish ! - the fee is charged on the full transaction value if it is a credit card ! That is the reason why Tesco (or any one else) don't do it. The card handling system doesn't differentiate between a £50 buy in Tesco plus a £50 cashback and a £100 purchase - the Tesco receipt will, your bank won't ! Equally, it wouldn't do it on a credit card transaction either.

leicsmarkyr

moonrakerz wrote: »

Rubbish ! - the fee is charged on the full transaction value if it is a credit card ! That is the reason why Tesco (or any one else) don't do it. The card handling system doesn't differentiate between a £50 buy in Tesco plus a £50 cashback and a £100 purchase - the Tesco receipt will, your bank won't ! Equally, it wouldn't do it on a credit card transaction either.

Sorry I meant to mention this would be on a debit card. EPOS and POS terminals do not allow cashback on credit cards as a general rule.

I own a retail store so know that if I give my customers cashback, I am oly charged on the purchase amount. Its an incentive to the retailer to get rid of the cash they hold on the premises and not have to pay into the bank. In addition most if not all acquirers charge a flat fee for debit card whether its purchase or purchase/cashbaclk

At the end, the authorisation going to the issuer is for the full amount, so my example it would ask the cardholders issuer for £60. And not two amounts: £10 and £50

JohalaReewi

YorkshireBoy wrote: »

You can't get "traditional" supermarket checkout cashback on a credit card.

You can get a kind of cashback if the supermarket has a savings stamp scheme. Buy the savings stamps with your credit card along with your normal shopping. The stamps will just become part of the purchase and you will get creditcard cashback on them. Collect the savings stamps (you can usually get a bonus from the store when you have collected so many) then use them to pay for shopping (usually at christmas).