Cashback - Term Overview

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The concept of cashback can be translated as 'money back'. It consists of a system through which a person who buys in the supermarket can pay for the purchase with a debit card and at the same time withdraw cash from their bank account.

Cashback has been operating for several years in different countries, but in some countries it became popular thanks to ING, after the agreement reached in 2017 with the Dia supermarket. This allows users of this entity to withdraw money in the supermarket, but also in gas stations or stores without having to go to the bank or ATM. When making the purchase you can ask the cashier for money in thousands of establishments.

Among the examples of cashback we can put the following. The total cost of the purchase in the supermarket amounts to 30 dollars. With your credit card the customer pays a higher amount, which could be 70 dollars. With this, the employee of the establishment will return 40 dollars in cash, as if he had taken them from the ATM.

Cashback benefits

There are several advantages of cashback. In the first place, it provides comfort to the user, who will not have to go to an ATM and possible commissions are avoided. At the time of doing a daily action such as buying or filling up gasoline, you can withdraw cash from your account.

For its part, the collaborating establishment guarantees a sale with the introduction of this system, promoting consumption in its business, while the banking entities expand their customer service with cashback by turning a non-brand business into a front-line operator.

While this format is gradually being implemented in some countries, in other countries such as the United States or England the service is already much more consolidated. The first to try it was the supermarket chain Tesco.

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