Angela wrote:
"David Hearn" wrote in message
...
For businesses handling cash is not a cheap thing - someone has to
take it to the bank, which is risky, time consuming or costly (if
you pay a company to collect). Whilst credit cards may have a
surcharge to them, it can often be cheaper for them to pay that,
than handle cash. Note, this is exactly why Tesco etc provide
cash-back. Its costing them pretty much the same for you to take up
to £50 extra out when they do the transaction - whereas they can get
rid of £50 cash without having to bank it (or pay someone to collect
it).

Supermarkets only offer cash back on debit cards for which there is
no charge (unlike Credit Cards) to the retailer.

It is a fixed charge to the retailer per transaction - rather than a %
charge. Therefore it costs the same to process a £500 transaction as a £1
one. The charge is not insignficant actually, therefore buying a cheap
newspaper or some cheap sweets on a debit may well cost them more to handle
than the transaction amount - or at least, reduce any profit to next to
nothing.

D