There is interest payable if you take cash from ATM on a credit card, but is it same for cash back from Tesco?

Lets say I buy items for £25 using credit card and take £50 as cashback on same card from any store which provide cash back facility, do they consider as a single transaction of £75 or two transaction 1. Shopping for £25 , 2. Cash withdrawl of £50. If they consider a single transaction, its intrest free untill my due date otherwise £50 would be considered as cash taken from ATM. I do not know answer yet and thats why its here.

cashback on credit cards is usually not available at checkouts. i assume that it is because of this very reason which you have highlighted.
otherwise it would be next to impossible for the card issuer to differentiate which rate of interest ( normal or cash advance) they must apply to transactions.

11 Responses to “There is interest payable if you take cash from ATM on a credit card, but is it same for cash back from Tesco?”

  1. jeanimus Says:

    Wherever you take cash out – from the ATM or as a cashback, the interest is at the higher rate for cash. Interest usually starts on the day of withdrawal for cash transactions.
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  2. bostonianinmo Says:

    The excess will be treated as a cash advance and the cash advance terms and conditions will apply. This should be explained in your cardholder agreement, probably in print that will require a magnifying glass to read and likely couched in legalese terms, but it should be there somewhere.
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  3. angel77 Says:

    I dont think you can get cash back with credit cards, only with debit cards, in which case no charges apply.
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  4. vb7 Says:

    I don't think stores give cashback when you use a credit card only a debit card.
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  5. GARY T Says:

    cashback on credit cards is usually not available at checkouts. i assume that it is because of this very reason which you have highlighted.
    otherwise it would be next to impossible for the card issuer to differentiate which rate of interest ( normal or cash advance) they must apply to transactions.
    References :

  6. angie Says:

    Cashback is only given when presenting a debit card for payment of goods.

    Cashback does not apply to credit cards.
    (Credit Cards are cash Advance transactions not cash back transactions. )
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  7. greenlake2601 Says:

    I am surprised by some financial questions on here !!!!!
    any cashback you take from a shop gets added to your bill, end of.
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  8. alatoruk Says:

    lots of people have put what i consider the right answer – you wont get offered cash back on credit cards for that very reason, debit cards only.
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  9. Libby one and only. Says:

    I worked in a supermarket and generally they do not give cash back on credit cards so i do not think you need worry. Should it be possible, but i don't think it is, you pay interest on any cash advance. It is not just a one off interest either- it is payable for the entire time you owe that money.
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  10. tomsp10 Says:

    It doesn't cost you anything to get cash back on a debit card and I don't think they offer it if you use a credit card.
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  11. Nikita R Says:

    it will be two separate transactions, so you will be charged for the £50 cash that you had. they can't charge you a cash handling fee when you've used credit. no matter where or how you use your credit card, if you physically withdraw cash from it by some means you will be charged a cash handling fee xx
    References :
    work for NatWest xx

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