Cash for cash-back.. Is that even legal?

Ok, if you say so.

Aren't forums wonderful where people can have different opinions.

Indeed they are!

There is no reason to add on £1 for providing cashback though. If a debit card transaction is for 50p, or for £50.50 (providing the customer £50 cashback), the cost to the retailer is exactly the same. It's only credit card transactions that carry a %age fee for retailers, debit card transactions are fixed fee no matter how large it is.

 

Therefore, adding a pound on just to provide cashback is rather cheeky. If they are charging a pound for using the debit card to pay with in the first place, then that is probably fair enough.

Debit fee interchange is not a fixed rate, it is 0.2%+1p for transactions. Then there is the acquirer margins as well.

Debit fee interchange is not a fixed rate, it is 0.2%+1p for transactions. Then there is the acquirer margins as well.

Was a fixed fee as far as I am aware, with credit cards being a percentage, the fee/percentage dependent on who you are signed up with.

What is so hard to undestand that shops (especially small ones) need to make a profit to keep going. As long as they tell you up front then you have a choice use it for convenience or walk to a free cash machine. Your choice. You forget their standard costs of having the shop and the staff in the first place.