Since last year, the “cash back” allows a customer using his bank card in a business, to be paid in cash. This implies certain conditions.
The “cash back” you know? This system allows customers to obtain cash when paying in credit card at a merchant. For example, your full shopping costs 20 euros, you pay 50 euros by bank card, and the merchant reimburses you 30 euros in cash.
“This is the end of the monopoly of banks,” had rejoiced Serge Maitre, president of the French association of users of banks, quoted by Le Monde .
This law was passed in July by the National Assembly and transposes a European directive on payment services. A law promulgated in the Official Journal on August 5, 2018.
However, there are several conditions to use this practice. Details.
What is the maximum amount of reimbursement?
A decree published in the Official Journal on 26 December 2018 sets the conditions for applying the “cash back”. The minimum purchase amount made in this context is set at 1 euro , the maximum amount that the merchant can return to the customer is, meanwhile, set at 60 euros. Beyond, the professional is liable to a fine amounting to 1500 euros.
This service is only for card payments, not check payments. The customer must not use this feature for professional purposes.
Who practices it?
The use of cash back depends on the will of the traders. Today in France, some stores offer it. This is the case of about fifty Casino supermarkets and about 80 Géant Casino hypermarkets.
All merchants who practice cash back must report it to their customers (via a cash poster for example).
This practice is already widely used in Europe, particularly in Germany, Spain and the United Kingdom. Moreover, according to a study by the European Central Bank published in November 2017, this represents about 7% of total withdrawals, operations with ATMs approaching 40% .