It’s a little bit ironic that while cash-based transactions keep becoming increasingly less frequent, it’s never been easier to get cash. What once required an in-person transaction with a human bank teller became a self-service process at automated teller machines, and nowadays, who wants to bother hunting down an ATM that won’t charge fees when you could just get free cash back with any purchase at your local corner store? Once the exclusive domain of grocery stores, many merchants now offer cash back with a debit transaction as a convenience for their customers—but what happens when a customer asks their bank for a chargeback on a cash back purchase?

Merchants who operate brick and mortar stores and process card-present transactions are faced with the choice of whether to allow their customers to receive cash back on purchases made with their debit card. The main reason to do so is because customers like it! It’s easy and convenient, it costs them nothing, and if your store sells inexpensive sundries they may come in and buy something just because they need to get some quick cash. It can also be more convenient for merchants to reduce the amount of cash they have to deposit by converting it into card sales that will be settled electronically.

Full Text:
https://www.chargebackgurus.com/blog/dealing-with-cash-back-chargebacks

©Chargeback Gurus 2020
Production: Courtney Freeman 
Narration: Sarah Rife