There are two types of cashback: You have cashback rewards, where the cardholder earns a certain percentage or a fixed-fee of every qualifying purchase, and you have cashback, where you withdraw cash from a credit or debit card.
Can You Get Cashback with Apple Pay?
You can receive cashback with Apple Pay — but the same rates and restrictions apply as using a physical credit or debit card. This means that both the merchant and your financial institution needs to actually offer cashback in order to use it the service.
You’ll also continue to be charged any processing fees either the merchant or bank tack on (if any), the same as you would if you were to use the physical version of the card in the store. There are no additional fees for cashback with Apple Pay.
The process is the same as using a plastic credit or debit card for cashback: You’ll need to instruct the cashier that you want cashback and the amount, or input it on the self-serve system if there’s one in the store, then pay with Apple Pay.
Can You Earn Cashback Rewards with Apple Pay?
Apple Pay doesn’t impact your ability to earn rewards from your purchases. You’ll still be eligible for cashback rewards, if your provider offers them, on qualifying purchases when you pay both in-store and online with Apple Pay.
Can You Earn Cashback Rewards with Apple Pay Later?
Announced at WWDC 2022 on June 6, Apple Pay Later is Apple’s answer to Klarna, letting users spread the cost of their purchase into four equal payments over six weeks, with no interest or additional fees, billing the card on file automatically.
Customers should still be able to earn cashback rewards on purchases made through Apple Pay Later, as it’s still charging the card on file — just in installments, rather than at once, so the cashback would be earned in instalments, rather than at once.