Many places in the US, especially grocery stores, when a debit card is used offer a "Do you want cash back option". Just wondered if that is ever an option in Europe. Last time I was there, 4 years ago, don't think I ever saw a credit card machine at a store where I scanned the card myself. Always had to give the card to the clerk. Just wondered if that had changed at all.
Posted by
Basel, Switzerland
8889 posts
Yes, cashback is common in the UK and has been for years. Virtually all the big supermarkets offer it. You have to ask the cashier before using your card. You have to use a debit card, not a credit card. Card readers are normally in front of the customer, you put the card into the machine yourself, check the amount and enter your PIN. The cashier cannot see you entering the PIN as the machine is facing in the wrong direction.
Yes, it does work with "foreign" debit cards, but I am not sure it would work if the card is not chip-and-pin.
The limit is £50 per transaction.
I have not seen cashback in either Switzerland or Germany, I am not sure why it hasn't been adopted.
Posted by
Basel, Switzerland
8889 posts
Phil, I said "foreign" cards, not North American, and I said I thought it only worked with Chip-and-Pin cards.
I have used cashback with a Swiss "Chip-and-Pin" debit card in a British supermarket, that is foreign!
Posted by
Oxford, United Kingdom
5450 posts
My guess at a reason why it isn't available in Switzerland or Germany is that debit card transactions might not have been levied to the merchant at a fixed fee in those countries either now or in the past but as a percentage of the transaction. Hence if the shop added €20 / 20 CHF to the bill to give out cash, they would have to pay a fraction of that to the debit card operator and be a loser. The incentive to the shop where they pay a fixed fee is that by "selling" cash to customers they have less cash handling at the bank, which may also be chargeable.
Posted by
Basel, Switzerland
8889 posts
Phil, I also didn't say a a North American isn't a foreigner, you keep putting words into my mouth.
All I said was cashback works for (at least some) foreign cards, but probably only for Chip-and-Pin cards.
Marco, I think you have it. For cashback to be advantageous for shops, they must be charged "flat fee" for debit card transactions, but a percentage fee for paying in cash, which I believe is the case in the UK.