Page "EFTPOS" Paragraph 5

In Australia, debit and credit cards are the most common non-cash payment methods at “ points of sale ” ( POS ) or via ATMs.

In Australia, this facility ( known as debit card cashback in many other countries ) is known as " cash out ".

For the merchant, cash out is a way of reducing their net cash takings, saving on banking of cash.

There is no additional cost to the merchant in providing cash out because banks charge a merchant a debit card transaction fee per EFTPOS transaction, and not on the transaction value.

Cash out is a facility provided by the merchant, and not the bank, so the merchant can limit or vary how much cash can be withdrawn at a time, or suspend the facility at any time.

When available, cash out is convenient for the customer, who can bypass having to visit a bank branch or ATM.

Cash out is also cheaper for the customer, since only one bank transaction is involved.

For people in some remote areas, cash out may be the only way they can withdraw cash from their personal accounts.

However, most merchants who provide the facility set a relatively low limit on cash out, generally $ 50, and some also charge for the service.

Cash out is not available in association with credit card sales because on credit card transactions the merchant is charged a percentage commission based on the transaction value, and also because cash withdrawals are treated differently to purchase transactions by the credit card company.

( However, though inconsistent with a merchant's agreement with each credit card company, the merchant may treat a cash withdrawal as part of an ordinary credit card sale.