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Barclays Bank begins rollout of cashback without a purchse

Barclays Bank is rolling out a new cashback without a purchase service in thousands of locations across the UK.

3 comments

Barclays Bank begins rollout of cashback without a purchse

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The new service allows businesses with a Barclaycard Payments terminal to offer customers of any bank with a Visa or Mastercard debit card up to £100 per day, without needing to make a purchase. In return, participating businesses will be paid a transaction fee by the bank.

Unlike ATMs, consumers will also be able to receive coins, with no lower limit and non-round amounts such as £8.64 allowed.

The service, legislated for under the Financial Services Act 2021, is intended to help towns affected by a wave of bank branch and ATM closures across the country.

Tim Allen, head of access to cash at Barclays UK, says: “While an increasing number of our customers choose to pay digitally, we recognise that for some, cash remains vital. This service will benefit communities around the country, beyond our customer base, giving them the choice and flexibility to access their money conveniently. This is part of our broader commitment to preserving long-term access to cash for those who require it.”

Barclays is also one of the driving forces behind the Access to Cash Action Group, including the rolling out of Banking Hubs, shared spaces from which the major banks operate.

Natalie Ceeney CBE, chair of the Access to Cash Action Group, comments: “ATMs work well for most people, but having additional places to withdraw cash, particularly if you want to get out less than £10, can help communities and small businesses as well as vulnerable consumers. Making cashback without purchase widely available needs to be a key part of the national strategy to keep cash accessible.”

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Comments: (3)

A Finextra member 

whats described above is really cash out, not cash back.

A Finextra member 

What is the business model for a card issuer different than Barclays? Somebody needs to foot the bill. Does Barclays charge a cash disbursement fee on the issuer of the card and if so, does the issuer charge the card holder a cash withdrawal fee? 

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

@Anon + 1.

That said, when I was in UK, I think this was called "Cashback" although I've subsequently heard that term applied in India and other countries to post-purchase discount on credit card purchases. 

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