Cash for cash-back.. Is that even legal?

[cgksheff]

Maybe that charge could be discounted from the savings that they make by not having to cash up as much money?

 

It is not so much the "cashing up", but the Business Banking Fees that they have to pay when depositing cash with the bank.

 

Less cash to bank = Less fees to pay.

 

CashBack is of mutual benefit to both store and customer.

[exxon]

Well then keep using the bank or post office counter then. Cash dispensing is part of their remit.

 

However, if you CHOOSE the convenience of getting your money out of a retailers till and let them have the burden of filing, checking, transporting and processing such cash then be prepared to pay for it.

 

Its hardly an obscene demand. Processing cash at any amount has elements of administration and logistics. Even if there is less cash to "count up" at the end of a day due to cashback, someone is still having to check the transactions and balance the books.

 

That costs a retailer time and money.

 

And it costs them even more money if I take my trade elsewhere. The Post Office part of the shop is only open during Post Office opening hours, and I'm not going to queue twice anyhow just to get a few quid for a night out. I'm also not about to pay £51 for £50 of my own cash.

If a transaction costs the store that much it must cost them a fortune everytime one of the kids buys a 30p bag of crisps. That requires just the same amount of effort.

 

So next time I want a few quick groceries and some cash on my way home that shop is off the list. I pass several convenience stores where I can complete my transaction without such a rip off.

[999tigger]

And it costs them even more money if I take my trade elsewhere. The Post Office part of the shop is only open during Post Office opening hours, and I'm not going to queue twice anyhow just to get a few quid for a night out. I'm also not about to pay £51 for £50 of my own cash.

If a transaction costs the store that much it must cost them a fortune everytime one of the kids buys a 30p bag of crisps. That requires just the same amount of effort.

 

So next time I want a few quick groceries and some cash on my way home that shop is off the list. I pass several convenience stores where I can complete my transaction without such a rip off.

 

Its still a service and they cna make a business decisions whether it helps increase their profits or it deters people and they lose trade. Presumably they know the pros and cons of it. I often wonder who uses the atms that charge, since im not keen on paying the £2 charge, but theres obviously some money in it as they still exist. Likewise some people must find the convenience of being able to get cashback as worth the cost.

[exxon]

Its still a service and they cna make a business decisions whether it helps increase their profits or it deters people and they lose trade. Presumably they know the pros and cons of it. I often wonder who uses the atms that charge, since im not keen on paying the £2 charge, but theres obviously some money in it as they still exist. Likewise some people must find the convenience of being able to get cashback as worth the cost.

 

It is their decision. I'm OK with it now that I know. A convenience store is convenient. I pay rather more than I would if I bought the same at Aldi or Waitrose. But they both have the convenience of free cash from my account. That makes them more convenient than the convenience store. It probably explains why they are always packed and corner shops are closing down.

[JFKvsNixon]

It is not so much the "cashing up", but the Business Banking Fees that they have to pay when depositing cash with the bank.

 

Less cash to bank = Less fees to pay.

 

CashBack is of mutual benefit to both store and customer.

 

Which is probably why the service was introduced in the first place.

[cassity]

It is their decision. I'm OK with it now that I know. A convenience store is convenient. I pay rather more than I would if I bought the same at Aldi or Waitrose. But they both have the convenience of free cash from my account. That makes them more convenient than the convenience store. It probably explains why they are always packed and corner shops are closing down.

 

 

It's odd you mention Spar as the culprit in this case. I use Spar regularly on Eccy Rd and their cashback is free (possibly due to high turnover)..so it can't be company policy..maybe Spar is a franchise that allows individual flexibility. Personally from a retail perspective I use Asda (free).

At one time I used an in store machine in Netheredge...£3.75 charge..although extortionate it worked for me at the time..but would avoid generally in future.

[Andy76]

It's odd you mention Spar as the culprit in this case. I use Spar regularly on Eccy Rd and their cashback is free (possibly due to high turnover)..so it can't be company policy..maybe Spar is a franchise that allows individual flexibility. Personally from a retail perspective I use Asda (free).

At one time I used an in store machine in Netheredge...£3.75 charge..although extortionate it worked for me at the time..but would avoid generally in future.

 

Spar is indeed a franchise so the franchisee makes the rules on stuff like that. Theres one in east London that seems to have staff on commision for how many carrier bags they can flog, they always ask even if just buying a can of coke and always offer to double bag for 'just 5p more'. I guess some franchise owners are so hung up on getting every last penny put of every customer through the door they lose sight of the fact that many customers don't return if they feel they are being hosed.

[ECCOnoob]

It is their decision. I'm OK with it now that I know. A convenience store is convenient. I pay rather more than I would if I bought the same at Aldi or Waitrose. But they both have the convenience of free cash from my account. That makes them more convenient than the convenience store. It probably explains why they are always packed and corner shops are closing down.

 

Only convenient if they are open.

 

Generally the purpose of convenience stores is that they are open when the main retailers are not. Tried going to the main retailers after 5.00pm on a Sunday or late evening on a bank holiday. How about some emergency supplies on Christmas Day or Easter Sunday?

 

That's generally when they come into their own.

 

Anyway, matters appear to be closed. Yes, YOU could choose to go elsewhere if you don't want to pay the charge and that may well hurt these shopkeepers. Others however (..and I have no doubt plenty do) may be prepared to sacrifice the small fee for the CONVENIENCE of getting cashback in a local shop there and then whatever time it may be.

 

Its a the wonderful world of freedom of choice.

 

The question was Is it legal? The answer is yes.

Edited November 28, 2015 by ECCOnoob

[watchcoll]

If it's one in the city centre or close to a few bars then they may charge to deter the people who come in& buy a single packet of chewing gum for a few pence just to get cash back so they don't have to join the long queue at the cash machine outside. The cost of the fees outweighs any profit for the business so they charge £1 to combat that & still provide the service. There was a spar on Division Street that used to have a minimum spend of £5 if you wanted cash back for this reason.

On the other hand, they may just charge because they can.

[Beligerence]

If it's one in the city centre or close to a few bars then they may charge to deter the people who come in& buy a single packet of chewing gum for a few pence just to get cash back so they don't have to join the long queue at the cash machine outside. The cost of the fees outweighs any profit for the business so they charge £1 to combat that & still provide the service. There was a spar on Division Street that used to have a minimum spend of £5 if you wanted cash back for this reason.

On the other hand, they may just charge because they can.

 

There is no reason to add on £1 for providing cashback though. If a debit card transaction is for 50p, or for £50.50 (providing the customer £50 cashback), the cost to the retailer is exactly the same. It's only credit card transactions that carry a %age fee for retailers, debit card transactions are fixed fee no matter how large it is.

 

Therefore, adding a pound on just to provide cashback is rather cheeky. If they are charging a pound for using the debit card to pay with in the first place, then that is probably fair enough.