Why does Discover offer cashback like a debit card?

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
6 posts
Traveler
Green Member
Green Member
 
Posts: 3
Joined: Wed Apr 03, 2013 2:49 am
Location: FL

Why does Discover offer cashback like a debit card?

Postby Traveler » Tue Nov 03, 2009 3:03 am

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.


DoingHomework
Centurion Member
Centurion Member
 
Posts: 707
Joined: Tue Sep 22, 2009 1:15 pm
Location: Arizona

Postby DoingHomework » Tue Nov 03, 2009 1:43 pm

Traveler wrote: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

User avatar
Mogul of Pineapples
Centurion Member
Centurion Member
 
Posts: 1271
Joined: Sun Jun 01, 2008 11:32 pm
Location: Smogland

Postby Mogul of Pineapples » Mon Nov 30, 2009 2:02 am

I've never checked but I have to assume they consider it a cash advance and therefore start charging interest on it right away. Whatever the case they should be more clear about it.

Maybe when you try and select the cashback option it tells you there will be interest accrued as a cash advance?
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

jeffysdad
Centurion Member
Centurion Member
 
Posts: 875
Joined: Thu Apr 30, 2009 2:32 pm
Location: Texas

Actually...

Postby jeffysdad » Mon Nov 30, 2009 3:00 pm

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.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

cpaynter
Green Member
Green Member
 
Posts: 17
Joined: Mon Mar 15, 2010 7:27 pm
Location: chicago area

Postby cpaynter » Tue Mar 16, 2010 11:39 am

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.

User avatar
Cucumber
Centurion Member
Centurion Member
 
Posts: 567
Joined: Tue Apr 22, 2008 12:44 am
Location: Zuma

Postby Cucumber » Fri Apr 09, 2010 3:17 am

Discover is advertising this now to clarify it.....and nope, there's supposedly no catch to using it :)
OBAMA
Stop talking crap about him!



Return to “Discover, Diners Club”

Who is online

Users browsing this forum: No registered users and 0 guests