The concept of cashback can be translated as 'money back'. It consists of a system through which a person who buys in the supermarket can pay for the purchase with Debit and at the same time withdrawing cash from your bank account.
Cashback has been operating for several years in different countries, but in Spain it became popular thanks to ING, after the agreement reached in 2017 with the supermarket Día. This allows users of this entity to withdraw money in the supermarket, but also in gas stations or stores without having to go to the bank or ATM. When making the purchase you can ask the cashier for money in thousands of establishments.
Among the examples of cashback we can put the following. The total cost of the purchase in the supermarket amounts to 30 euros. With his credit card the customer pays a higher amount, which could be 70 euros. With this, the employee of the establishment will return 40 euros in cash, as if he had taken them from the ATM.
There are several advantages of cashback. In the first place, it provides comfort to the user, who will not have to go to an ATM and possible commissions are avoided. At the time of doing a daily action such as buying or filling up gasoline, you can withdraw cash from your account.
For its part, the collaborating establishment guarantees a sale with the introduction of this system, promoting consumption in its business, while the banking entities expand their customer service with cashback by turning a non-brand business into a front-line operator.
Although in Spain this format is being implemented little by little, in other countries such as the United States or England the service is already much more consolidated. The first to try it was the supermarket chain Tesco.