Cashback is a modern POS terminal service that allows cash to be withdrawn from the merchant's till while paying for goods and services.
Although cashback is a feature specific to debit cards, it is also possible to withdraw cash from an ATM by linking an account to a credit card. However, POS cashback transactions can only be carried out with debit cards.
So can I do cashback with any card? Is there a condition for this?
- Not every card supports cashback. For a cashback transaction to be possible, the card must have this feature.
- The merchant's POS device must also have the function to perform cashback transactions.
Is an extra fee paid for a cashback transaction?
A small fee may be charged by the merchant for a cashback transaction.
What are the types of cashback? How are they sent in authorization and clearing records?
Cashback can be done in two different ways during a purchase: as an addition to the transaction, or independent of the transaction. However, banks generally only allow a POS cashback transaction when a purchase of at least 10 TL is made.
- When cashback is requested in addition to the payment amount during a purchase, although it is sent in the authorization message as a single sales record over the total amount, the clearing record will consist of two independent clearing records: one for the purchase amount and one for the cashback amount.
What are the advantages of a cashback transaction?
- Stronger customer loyalty - having a new service available on the POS terminal increases the frequency with which existing customers visit the store.
- New customers - additional services increase the number of customers visiting the store, which can lead to an increase in profitability.
- Lower costs related to holding and transporting cash - the ability to withdraw cash through the POS terminal reduces the costs associated with holding and transporting cash.
