Can You Get Cashback With a Contactless Phone Payment?

Consumers commonly use smartphones for quick, secure payments at checkout counters. Methods like Apple Pay and Google Pay allow users to tap their device at a payment terminal to complete transactions. Many also rely on receiving cashback with debit card purchases. This article explores whether cashback is possible with contactless phone payments.

Is Cashback Available with Contactless Phone Payments?

Customers can often receive cashback with contactless phone payments. This ability stems from the underlying debit card linked to the digital wallet, not the phone application itself. The phone securely transmits the debit card’s information to the merchant’s payment system. Therefore, if a physical debit card allows for cashback, its digital representation in a phone wallet typically will too.

The merchant’s point-of-sale (POS) system processes the transaction as a standard debit card purchase. Most modern payment terminals and systems are equipped to handle this functionality, treating contactless transactions similarly to a traditional card swipe or insert. The availability of funds in the linked bank account is also a prerequisite for any cashback to be disbursed.

Steps to Request Cashback at the Register

Requesting cashback when using a contactless phone payment involves specific steps. Before initiating payment, the customer should inform the cashier of their intention to receive cashback. This allows the cashier to prepare the transaction and input the request into the terminal. The customer then taps their phone to the payment terminal, activating the contactless payment process.

The terminal will typically prompt the customer to select their payment type, where “debit” should be chosen. Following this, the system may ask if the customer desires cashback and present options for various amounts, such as $20, $40, or $60. Once an amount is selected, the customer might be prompted to enter their Personal Identification Number (PIN) on the terminal’s keypad to authorize both the purchase and the cashback withdrawal. The terminal then processes the transaction, and the cashback amount is disbursed by the cashier.

Factors Influencing Cashback Availability

Several factors can influence whether cashback is successfully obtained with a contactless phone payment. A primary consideration is the merchant’s individual policy regarding cashback offerings. Some retailers may choose not to offer cashback at all, regardless of the payment method, or they might restrict it to physical card transactions. It is advisable to inquire about a store’s specific cashback policy before attempting a transaction.

The type of card linked to the phone payment is also a significant determinant; cashback is almost exclusively available with debit card transactions. Credit cards generally do not support cashback withdrawals at the point of sale, as they represent a line of credit rather than direct access to deposited funds. Financial institutions and merchants may impose daily limits on the amount of cashback a customer can receive, which can range from $50 to $100 per transaction or per day. Some merchants may also require a minimum purchase amount before cashback can be requested.