Can You Get Cashback With Contactless Payments?

Contactless payments and cashback are common features in modern financial transactions, offering convenience to consumers. Contactless payment systems allow individuals to complete purchases by tapping a card or mobile device near a compatible payment terminal. This technology utilizes radio-frequency identification (RFID) or near-field communication (NFC) to securely transmit payment information. Cashback, in the context of debit cards, enables individuals to receive physical cash from their bank account at the point of sale during a purchase.

Is Contactless Cashback Possible

Yes, it is possible to obtain cashback when making a contactless payment. The ability to receive cashback depends on the type of card used and the specific policies of the merchant, rather than the contactless technology itself. Contactless payment serves as a method of transmitting payment data, similar to inserting a chip card or swiping a magnetic stripe. The underlying transaction, including any cashback request, is processed through the same established card networks and banking systems. If a merchant offers cashback for standard debit card transactions, it can be facilitated via a contactless payment.

The Process of Getting Cashback

Obtaining cashback during a contactless transaction at a point-of-sale terminal follows a sequence. After your items are scanned, the payment terminal will prompt you to initiate payment. Tap your contactless-enabled card or mobile device, such as a smartphone or smartwatch, near the terminal’s reader. The terminal may present options, such as “Debit or Credit,” or prompt for a Personal Identification Number (PIN).

Select the debit option, which often leads to a prompt asking if you desire cashback. Select the desired cashback amount from the options displayed on the screen. After confirming the amount, the transaction concludes, and the requested cash is provided by the cashier.

Key Considerations for Contactless Cashback

Cashback at the point of sale is almost exclusively available with debit card transactions, as it represents a withdrawal from your linked bank account. Credit cards generally do not offer this type of immediate cashback, as their primary function is to extend credit, and cash advances typically incur fees and higher interest rates. While some credit cards offer rewards programs that are often referred to as “cashback,” this typically involves a percentage of spending credited back to your account later, rather than immediate physical cash at the register.

The offering of cashback is entirely at the discretion of individual retailers. Not all stores that accept contactless payments will provide a cashback option, and policies can vary significantly between different merchants. Many retailers, such as grocery stores, commonly offer this service to reduce their need to deposit excess cash at banks. Merchants may also impose transaction limits on the amount of cashback that can be requested. These limits, often set by the merchant or the card issuer, commonly range from $5 to $100 per transaction, though some retailers may allow up to $200.

These limits are independent of your debit card’s daily withdrawal limit and are influenced by factors like store cash availability and security protocols. The underlying card network (e.g., Visa, Mastercard) and your bank facilitate the cashback request as part of the overall transaction, ensuring the funds are debited from your account and credited to the merchant’s. Some merchants may charge a small fee for cashback, typically ranging from $0.50 to $1.00, to offset their processing costs.