Officials at Sainsbury announced their decision to roll the cashback service in most stores. Kent Live reported an official of the Sainsbury speaking on condition of anonymity their decision to withdraw cashback service. The service was removed at their stores in significant locations on a trial basis. However, in exchange, customers would be offered free cash points on every purchase to make up for the sudden withdrawal. Sainsbury argued that when Covid was at its peak, shoppers preferred to go contactless. Most of the transactions from Sainsbury were processed through credit cards and no formal contact. This propelled the company to scar its popular cashback service, which has left customers fuming.
What is the response from the customers?
The majority of the customers are disappointed with the recent decision from Sainsbury. Around 80% of those left frustrated with the current move are repeat customers. A customer on the condition of anonymity expressed her views to the Daily Mail newspaper. She disagreed with Sainsbury’s view that cashback was declining and stated it was the safest option during Covid. With inflation touching a peak, there is a higher risk with cards than cashback services. Cashback also takes seconds to process money, thus being quick and efficient.
What is Cashback?
Why do Supermarkets have cashback?
Most supermarkets offer cashback for their profit and to reduce their workload. For every transaction processed through a credit or a debit card, the banks charge a nominal fee from the company for large cash amounts. Hence, when a supermarket offers its customers cashback, it avoids that nominal fee that it owes to the bank. Moreover, cashback service is itself very appealing to the customer. By offering some amount of cash to the customer, the supermarket itself is reducing its rivals and making regular customers.
How many Supermarket chains currently have Cash Back systems?
Is Sainsbury’s New App replacing its Cash Back service?
In 2018, Sainsbury announced its decision to launch a new app that will help its customers purchase orders in the supermarket. The customers now need not go to the store itself for their shopping. They can easily choose their comfort of home and order all their groceries and other items through this app. Some in the market speculated this app to replace the now-dead cashback service of Sainsbury’s, but Sainsbury refused to comment. The app has all the products ranging from household groceries to drinks and eatables. The customers have to enter their card details, and they can purchase all their items wherever they are.
Conclusion
FREQUENTLY ASKED QUESTION
Q.1 Does Sainsbury accept cashback?
No. Sainsbury does not accept cashback.
Q.2 Does cashback in Sainsbury depend on its locations?
No. All locations of Sainsbury do not offer cashback to its customers.
