Discover cashback at stores?

[Anonymous]

I never heard of getting cash back from a credit card until the other day. I swiped my Discover at Walmart and it asked if I wanted cashback. I figured for sure it would be considered a cash advance but I went online when I got home and looked into it. Sure enough, to my suprise, Discover offers cashback or as they call it "cash over your purchase". I have two questions I'm hoping someone can answer. First is the store exempt from the interchange fee for the amount over the purchase? I would think they would have to be. But in that case I don't see why Discover would want to lend out extra cash that they'd make no money on it unless you carry a balance. And second although credit cards generally all offer cashback people who take it often make them nervous. My question is would they be nervous about the cardholder who uses the option as if it were a cash advance? Considering there's no extra fee or higher intrest it doesn't seem like someone using the offer is 'desperate' or "high risk". I guess what I'm asking is would it hurt your internal score?

[coldnmn]

It's a Walmart thing. I believe started when Walmart cards were Discover. There are other stores that allow it also and considered a purchase. When Walmart went to Mastercard they continued the practice. I use the option all the time it saves me ATM fees and I have never had a problem.

[joltdude]

Cash over is a Discover thing that Walmart continued on its cards. It usually has a small limit but is avalible at many grocery stores and pharmacy with Discover card .. Its added on to your purchase and is treated as a purchase not an advance.

[mitchblue]

That's nice to know. Every now and then I've got no cash and need a 20. 

[joltdude]

The only minor gotcha is if you don't PIF your paying purchase interest on the cash, at least its not Cash advance interest.

[Anonymous]

Yes but If you do pay in full it's pretty convenient. I still wonder if doing it too much would hurt your internal score with Discover.

[coldnmn]

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@Anonymous wrote:
Yes but If you do pay in full it's pretty convenient. I still wonder if doing it too much would hurt your internal score with Discover.

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I doubt it. I just called to get my Discover with chip and they offered to send it over night for free. I doubt they would do that if I had a low internal score.

[Anonymous]

Wow. I wonder how many people are going to take advantage of the feature just to maximize their cash back rewards. 

Example: Go to Walmart. Make a $30 purchase. At the register, get $120 cash from the card. Go next door to your local bank and deposit that cash into your checking account. You just made $1.50 from Discover? 

"1% unlimited cash back everywhere else." 

"Cash Over transactions are limited to $120 every 24 hours with no monthly limit. Most stores have a cash over limit. Please check with your local store."

[14Fiesta]

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@Anonymous wrote:

Wow. I wonder how many people are going to take advantage of the feature just to maximize their cash back rewards. 

Example: Go to Walmart. Make a $30 purchase. At the register, get $120 cash from the card. Go next door to your local bank and deposit that cash into your checking account. You just made $1.50 from Discover? 

"1% unlimited cash back everywhere else." 

"Cash Over transactions are limited to $120 every 24 hours with no monthly limit. Most stores have a cash over limit. Please check with your local store."

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You cannot earn rewards on the cashover amount for purchases. And Discover does know how much you took for cash. 

[Anonymous]

Ohhhh. I see. Clever of them.