# Ulster Bank MasterCard Credit Card - Charges for cashback



## Conshine (22 Nov 2011)

If I use my Ulster Bank Master Card credit card in a shop to purchase some things and when the cashier asks if I want cash back, will I get charged interest for the cash amount?

I always pay my CC bill on time and in full.

I know that if I withdraw from an ATM that I will be charged, but as this is just a figure that gets input into the CC machine at the shop, as far as Ulster Bank knows, it is part of my purchase transaction, so not sure how this will work out.


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## MugsGame (22 Nov 2011)

A few points
- Merchants aren't supposed to offer Purchase With Cashback (PWCB) on credit cards. I suspect you'll find that the transaction is declined if they attempt an authorisation with cashback on a credit card.
- For cards where cashback is allowed, the cashback amount is sent up to the bank separately, so the banks can chose to apply different fees to the merchant or cardholder for each portion.


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## ClubMan (23 Nov 2011)

In general - how interest is charged on cash advances from a _CC _depends on the card/terms and conditions. Normally there is percentage charge of the amount withdrawn (subject to some minumum fee). Whether or not interest accrues from the date of withdrawal depends on the card. My _PTSB _card only charges interest on cash advances once the normal credit period elapses and the bill has not been cleared. Many (most?) other cards charge it immediately. Read your card terms & conditions. And if possible don't do cash advances on _CCs _(unless perhaps if they are preloaded with cash) as there are often more cost effective ways to get cash.


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## flossie (23 Nov 2011)

You can't get cashback on a credit card. You will find many shops just go into auto pilot and offer it.


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## ClubMan (23 Nov 2011)

Can you do a _CC _cash advance/withdrawal at a _POS (Point of Sale)_ terminal or only at an _ATM_?

Update: this seems to suggest that _CC _cash advances may be possible other than at an ATM/cash machine:

[broken link removed]



> 11. Your Card may be used for cash withdrawals, advances made by Card or  Card number, and cash related Transactions, such as the purchase of  cash. A cash advance fee may also apply and where the transaction is not  done at a Cash Machine you may also be asked for proof of identity.


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## Mpsox (23 Nov 2011)

Are you sure you are not mistaking your new UB Visa Debit card for a credit card?


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## flossie (23 Nov 2011)

11. Your Card may be used for cash withdrawals, advances made by Card or Card number, and cash related Transactions, such as the purchase of cash. A cash advance fee may also apply and where the transaction is not done at a Cash Machine you may also be asked for proof of identity. 11. Your Card may be used for cash withdrawals, advances made by Card or Card number, and cash related Transactions, such as the purchase of cash. A cash advance fee may also apply and where the transaction is not done at a Cash Machine you may also be asked for proof of identity. 11. Your Card may be used for cash withdrawals, advances made by Card or Card number, and cash related Transactions, such as the purchase of cash. A cash advance fee may also apply and where the transaction is not done at a Cash Machine you may also be asked for proof of identity. 

I think this refers more to when you buy things like foreign currency etc?


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## ClubMan (23 Nov 2011)

Not sure what you mean. Wouldn't you normally do a cash withdrawal of foreign currency while abroad at a cash machine/_ATM_?


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## MugsGame (2 Dec 2011)

The OPs question refers to *cashback* as part a purchase transaction (termed "purchase with cashback" in the payments industry.). 

I agree with flossie, this isn't possible, at least not with any credit cards issued in Ireland or the UK. The merchant's bank will normally decline PWCB if attempted on a credit card.

You can of course get a *cash advance* on a credit card, which includes withdrawing cash at a bank or foreign exchange bureau, which will attract fees. But this isn't what the OP refers to.


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## terrontress (6 Dec 2011)

Merchants will generally not give cashback on a credit card purchase because they are charged a Merchant Service Charge as a percentage on credit card but a fixed amount on debit card. 

If the transaction costs £1 or £200 the debit card fee will be the same. Therfore it is no extra financial burden to the merchant to give cashback on debit and reduces the cash they have to hold, count, transport etc. If they give cashback on credit, the more they issue, the more it costs them.

You can use your credit card for an 'over the counter' (OTC) cash advance which will be treated as cash. This tends to be from banks or bureaux de change. In all other aspects the transaction will appear like a purchase.

Additionally, you may carry out a 'quasi-cash' transaction which is where the transaction is a purchase but is treated as cash. Examples of this are gambling transactions, payment of a fee or subscription or donation to a charitable organisation. Treating quasi-cash as cash is optional for a card issuer. I believe AIB charge as cash for some or all of those, BOI do not for any.


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