Cash Back on Debit Cards ???

whenever I purchase things using my debit cards, I get a cash back of up to 5%. So in a way, I save that much amount. But from who%26#039;s pocket actually that money comes?? That bank who%26#039;s card it is or from the shopkeepers pocket.? further do shopkeepers pay something for availing this facility of accepting cards ??

Cash Back on Debit Cards ???fha loan

Shopkeepers that allow credit cards do have to pay I believe 5-8% of the total bill which goes to the credit card company. They probably tact that price into the goods that they sell which in the end you buy. So really your not getting money but your not losing money either.

LS

Cash Back on Debit Cards ???

loan

good question. I know that when I go to the store, Im allowed to take up to $20 extra cash back when I pay with my debit card. I think it comes out of my pocket.|||there is a merchant fee for shopkeepers to run cards and it depends on which card it is the highest merchant fee is for discover and amercian express. when you get 5% cash back that comes from the bank NOT the merchant- merchants would pitch a huge fit if they had to pay for a cardholder%26#039;s %26#039;perks%26#039;.|||Debit card cashback is a service offered to retail customers whereby an extra amount of money is added to the total purchase price of a transaction (paid by debit card) and the customer receives the extra amount in cash along with their goods.

When accepting payment by debit card, merchants pay a fixed commission fee (as opposed to a percentage) to their bank or merchant services provider. (This is because the commission paid by the merchant for accepting debit cards, unlike credit cards, does not need to fund interest free credit or other incentives).

Accepting payments in cash can be costly for merchants, given that many British banks charge around 0.5% for depositing cash into a business bank account, along with the costs of transporting and insuring the cash.

The combination of these two points means that the retailer can save money by offering the cashback service. It does not cost the retailer more in commission to add cashback to a debit card purchase, but in the process of giving cashback, the retailer can %26quot;offload%26quot; cash which they would otherwise have to pay to deposit at the bank.

Merchants do not offer cashback on payments by credit card because they would pay a percentage commission of the additional cash amount to their bank or merchant services provider.

Some vendors enforce a minimum purchase amount or add a fixed fee when providing cashback to a customer.|||It comes from the bank.

Stores do pay a percentage of the sales to the credit cards....the fee varies from card to card...its one reason why many stores do not take American Express (but businesses do) while they accept Visa or Mastercard.