Cash Back Debit Transaction

Specifically, a cash back debit transaction occurs when a customer uses a debit card to make a purchase and requests an additional amount of cash to be disbursed at the time of sale. This amount is directly added to the transaction total, and the customer receives the cash immediately from the merchant. This type of transaction can simplify financial management by consolidating shopping and banking needs into a single action. The availability and limit of cash back may vary by merchant and may be subject to the customer’s bank policies and the balance available in their account. Notably, in the event of a chargeback, where the legitimacy of the transaction is disputed, the cash back amount is typically treated separately from the purchase to clarify the amounts in question.