High street boost as shops get paid to give us cashback

A VICTORY has been struck in the battle to keep cash on our high streets after Mastercard announced a new cashback reward scheme for shops.

The finance giant said banks which issue its debit cards will pay retailers a 12p fee for each time a customer gets money back with their purchases.

The move comes amid concerns over the disappearance of cash machines and banks and warnings we are ‘sleepwalking’ into a cashless society. The Mail has highlighted how the elderly, vulnerable and those in rural communities have been hardest hit by the fall in access to cash.

On the face of it, Mastercard’s initiative is good news for retailers who collect the fee and for the public who rely on cash.

However, some warn that it could make many remaining ATMs uneconomic.

Cashback in shops has been an

‘A step in the right direction’

option for some time, but Mastercard said it hopes the 12p fee will help encourage more small stores to provide the service.

The scheme, which will start in April, will apply only to Mastercard debit cards, although the firm’s main rival Visa has announced a similar pilot scheme with Lloyds Bank which will target areas where customers struggle to get cash.

Mastercard has a tiny share of the debit card market but recently signed up Santander and TSB, which will boost its presence to one in five cards.

Gareth Shaw, of Which? Money, said the announcement needs to be treated with caution, adding: ‘While a step in the right direction, cashback can only plug some of the gaps in Britain’s broken cash infrastructure.’

Mastercard’s UK president Mark Barnett insisted the scheme was not designed to replace cash machines. He added: ‘If we can add to the number of outlets where people can access cash, especially in areas without an ATM, it will be a valuable addition to the community.’