Thread: Why does Discover offer cashback like a debit card?

I have a Discover card and when I pay it asks if I want cash back on my purchase just like it does if you are paying with a debit card and enter your pin number.

I've never asked for cashback because I am unsure of what category that falls under. Do they consider that a cash advance and then start charging interest right away if you take the cashback? I admit it does look tempting because it's convenient but after being shafted with credit card deals in the past I am pretty skeptical now of everything.

Originally Posted by Traveler

Do they consider that a cash advance and then start charging interest right away if you take the cashback? I admit it does look tempting because it's convenient but after being shafted with credit card deals in the past I am pretty skeptical now of everything.

I think you just found their gimmick. Lots of people say yes then get gouged I bet

I think it's a decent deal. I remember when I got a Discover card, used it at a gro. store and was asked if I wanted cash. I wast totally bewildered so I called Discover and was told that if you get cash with your purchase it's just rolled in with the purchase amount. It's not like a cash advance. If you pay your card off every month there's no interest. It's a good way for some people to keep from having to go to the ATM. I don't use Discover, though, as I can get better cashback elsewhere.

It is treated as part of the purchase (except for rewards purposes). So as long as you pay your bill in full each month, it amounts to an interest-free cash advance, so that's a good deal. It isn't available everywhere; I've seen it mostly at major grocery chains, WalMart and Sam's Club. But when I'm making small purchases, or on months like this one when there's 5% back on groceries, I take full advantage of the offer. I've even had rare occasions where I've earned cash-back rewards on the cash-over amount, probably due to a glitch in the store's processing system (didn't properly indicate to Discover's system how much of the amount was cash-over versus purchase). In any event, the cash-over option isn't treated as a cash advance, so it's a good way to effectively get a"cash advance" at no cost.