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What are the pros and cons to a retailer of offering cash back with a purchase?

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Question added by Abdullah Mahhaden, CFA, CPA , Assurance Manager , Grant Thornton
Date Posted: 2013/06/18
Khalil Shqair
by Khalil Shqair , Sales Manager , Staples Business Depot

Pros: helps the store keep less cash to reconcile at the end of the day, and insures a safer way of managing money. Plus, the free of charge convenience that encourages people to shop at your store.

 

Cons: there are fees that the store needs to pay to the bank.

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