Debit card cashback (also known as cash out in Australia and New Zealand) is a service offered to retail customers in which the amount is added to the total purchase price of a transaction paid out to debit card and the customer receives the amount in cash together with the purchase. Cashback debit cards are offered either by various banks only to multiple card holders or by companies such as VISA, MasterCard or American Express. For example, a customer who buys $ 18.99 in a supermarket might ask for twenty dollars. They will pay a total of $ 38.99 ($ ​​â € <â € <18,99 $ 20.00) with their debit card and receive $ 20 cash along with their items.
This benefits the store because it reduces the amount of cash banking that the store must do. Many customers consider it a useful way to earn cash because they avoid having to use cash machines, which may cost extra.
Video Debit card cashback
History
The initial idea was the British retail chain Tesco to reduce the amount of cash banking needed to carry out, the customer service aspect being a side effect of this.
Maps Debit card cashback
Coverage
These services are offered by banks and merchants in countries such as the United States, United Kingdom, the Republic of Ireland, Belgium, Germany, Sweden, Norway, Canada, Poland, the Netherlands and Australia because of the cost structure used in these countries. :
- When receiving a payment with a debit card, merchants pay a fixed commission fee (as opposed to a percentage) to their merchant bank or service provider. (This is because the commissions paid by merchants to accept debit cards, unlike credit cards, do not need to finance interest-free credits or other incentives). Receiving payments in cash can be expensive for merchants, given that many UK banks charge about 0.5% to deposit cash into a business bank account, along with transportation costs and insure cash.
The combination of these two factors means that retailers can save money by offering cashback services. This does not incur more retailers in commissions to add money back to debit card purchases, but in the process of giving money back, retailers can "issue" the cash they should be paying to keep in the bank.
Cost, operation, and profit
This service is restricted to debit cards in which merchants pay a flat fee for transactions, it is not offered on credit card payments because they will pay a percentage commission on the additional cash amount to their bank or merchant service provider.
Some vendors impose a minimum purchase amount or add a flat fee when giving money back to the customer.
In many cases, resellers require customers to initialize cashback entries on receipts until to confirm that they have received cash. This system is used to prevent cashiers from stealthily adding money back to transactions and saving money for themselves (or similar accusations), but more importantly, to ensure that customers can not return to the store with allegations that officers "forget "to hand over the requested money.
Cashback can benefit customers in many scenarios. In locations where there are no nearby ATM machines, or nearby machines are not working or empty, local retailers may be able to provide the necessary cash and offer more flexibility in note denominations. It's sometimes easier to combine transactions at retailers and ATMs into single cashback transactions with retailers.
In addition, although the fees for ATM card usage are very rare in countries like the UK, where cashback is coming, this is not the case in some other countries. In Canada and the United States, a $ 1 ~ 2 fee is typical when using an ATM from a different bank from the bank with which the customer has an account. The cost in some other countries is even higher. In Germany, for example, the usual cost is EUR4 ~ 5. This raises the potential for other cashback benefits for consumers: by utilizing cashback procedures, these ATM fees can be avoided for cardholders.
Poland: For standard payment transactions, merchants must pay interest fees as a percentage of the payment value, not as a fixed tax. In contrast, for cashback services, merchants receive a flat fee from card issuers (~ $ 0.15-0.30), but cash withdrawals just once can not be higher than 300z? (~ $ 80). Cashback service is available on ~ 1/6 of POS in Poland (2014).
References
Source of the article : Wikipedia
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