You're standing at the checkout. Your phone is out. You've got that familiar "beep" ready to go, but you suddenly realize you need twenty bucks in paper cash for the babysitter or a taco truck that doesn't take digital wallets. It hits you: Can you do cashback with Apple Pay? The short answer is yes. Mostly. Sorta.
It’s actually way more complicated than just tapping your phone and hoping for the best. If you walk into a store thinking every NFC terminal is a personal ATM, you’re going to be disappointed. Honestly, the confusion comes from how Apple Pay handles your cards. It isn't a bank account; it's a digital tunnel. Whether that tunnel allows cash to flow back to you depends on the store, your bank, and—crucially—which card you’ve set as your default.
Why the Store Matters More Than the Phone
Apple Pay uses Near Field Communication (NFC). When you tap your iPhone or Apple Watch, it sends a tokenized version of your card data. For a "cashback" transaction to work, the store’s point-of-sale (POS) system has to be programmed to recognize that a debit transaction is happening and then trigger the "Would you like cashback?" prompt on the screen.
Many retailers have disabled this for mobile wallets. Why? It's expensive for them. Every time you pull cash out at a register, it costs the merchant in processing fees and liquidity.
Places like Walgreens, Whole Foods, and Safeway are generally the gold standard here. They’ve updated their software to play nice with Apple’s protocols. But if you try this at a CVS or a smaller local boutique, the option often just... doesn't show up. You tap, the payment goes through for the milk and eggs, and the transaction ends before you can even ask for a twenty.
The Debit Card Requirement
This is the part where most people get tripped up. You cannot get cashback with a credit card via Apple Pay. Well, you can, but it's called a cash advance, and it'll ruin your month with 25% interest rates and immediate fees.
To get standard, fee-free cashback, you must have a debit card linked to your Apple Wallet.
When you use a debit card, the system treats the iPhone like a physical swipe or chip insert. You’ll usually be prompted to enter your PIN on the store's keypad. If you aren't asked for a PIN, you aren't getting cashback. It's that simple.
The Apple Card Exception (Daily Cash)
We need to talk about the difference between "getting paper money at a register" and "earning rewards." People use the term "cashback" for both, which is a nightmare for clarity.
If you are using the Apple Card (the titanium credit card from Goldman Sachs), you aren't getting paper money at the register. Instead, you're earning Daily Cash.
- 3% back on Apple products, Uber, Walgreens, and T-Mobile.
- 2% back on every other purchase made using Apple Pay.
- 1% back if you use the physical plastic (well, titanium) card.
This money doesn't go into your pocket at the grocery store. It drops into your Apple Cash account or a high-yield savings account if you've set that up. It’s "cash back" in the sense of a rebate, not "cashback" in the sense of "I need five dollars for this vending machine."
Common Stores That Usually Allow Cashback With Apple Pay
It’s a bit of a moving target. Retailers change their software all the time. However, based on consistent user reports and official store policies, these are your best bets:
👉 See also: USB C Convert to USB: Why Your Adapters Keep Failing and How to Pick the Right One
- Walgreens / Duane Reade: They were early adopters. Usually very reliable for small amounts.
- Safeway / Vons / Albertsons: The grocery giants generally allow it, provided you're using a debit card.
- Whole Foods: Since Amazon took over, their tech is fairly robust.
- Trader Joe's: Usually works, though their terminals can be finicky depending on the region.
- Meijer and Kroger: These are hit-or-miss depending on whether they are pushing their own proprietary "Pay" apps, but generally, the NFC terminals support it.
Don't expect it at Target. Even though Target accepts Apple Pay, their system is notoriously restrictive about cashback on mobile transactions. They want you to use their RedCard. It's a strategic move, not a technical limitation.
Step-by-Step: How to Actually Do It
If you’re at a supported store, don't just tap blindly.
First, make sure your debit card is selected in the Wallet app. If your default is a Chase Sapphire or an Amex, you need to manually switch to your bank's debit card before double-clicking the side button.
Second, tell the cashier before you tap. Sometimes they have to hit a specific button on their side to "enable" the cashback prompt.
Third, tap your phone.
Fourth—and this is the part people forget—look at the card reader terminal. It will ask for your PIN. Then it will ask "Cash back? Yes/No." Select the amount. The transaction will then process the total amount (your groceries + the cash).
The PIN Issue
If your bank doesn't support "PIN-less debit" via Apple Pay, the transaction might fail or just skip the cashback screen entirely. Some smaller credit unions have haven't fully integrated their backend with Apple's "Extended Map" for debit transactions. If you find it never works for you, your bank's specific implementation of the "Device Account Number" (DAN) might be the culprit.
Limits and Hidden Fees
You aren't going to pull $500 out of a register. Most stores limit cashback to **$40, $60, or maybe $100**.
Also, watch out for "service fees." While most grocery stores provide this for free to entice you to shop there, some smaller regional chains have started tacking on a 50-cent or $1 charge for the privilege. It’s still cheaper than an out-of-network ATM fee, which can easily hit $5.00 in 2026.
Using Apple Pay at ATMs
If the grocery store method fails, there is a better way.
Most major banks—Bank of America, Wells Fargo, Chase—now have NFC-equipped ATMs. You’ll see a little symbol that looks like a sideways Wi-Fi signal near the card slot.
You don't need your physical card. Just open your Apple Wallet, select your debit card, and hold your phone near the symbol. The ATM will ask for your PIN, and you can withdraw money just like you normally would. This is often more reliable than trying to get a grocery store's POS system to behave. It’s also safer; you aren't worried about card skimmers because the "tokenized" data is useless to a thief.
The Reality of Cash in a Digital World
We are moving toward a cashless society, but we aren't there yet. It’s an awkward middle ground. Apple Pay is designed to replace your wallet, but until every laundromat and street performer has a Square reader, you still need those green slips of paper.
Getting cashback via Apple Pay is a "hack" that relies on three different companies (Apple, your bank, and the retailer) all agreeing on the same piece of code. When it works, it feels like magic. When it doesn't, you feel like a fool holding a glowing rectangle in front of a confused teenager at a register.
Actionable Steps for Success
- Check your default card: Go to Settings > Wallet & Apple Pay. Make sure a Debit Card is your "Default Card" if you plan on doing this often.
- Locate the symbol: Only use ATMs with the contactless symbol. If the ATM requires you to "shove" the phone into a slot (which some old designs weirdly implied), don't do it.
- Know your PIN: You cannot bypass the PIN for cashback. If you've forgotten yours because you use FaceID for everything, reset it in your banking app first.
- Test small: Try for $10 at a Walgreens. If that works, you know your specific bank/phone combo is good to go.
If you find yourself stuck at a store that doesn't offer cashback, your best move is to use the "Find an ATM" feature in your banking app. Most now have a filter for "Contactless Access." Use that instead of fighting with a checkout terminal that wasn't built for the task.
Ultimately, the ability to do cashback with Apple Pay is a convenience, not a guarantee. Treat it as a "Plan B" and you’ll avoid a lot of frustration at the checkout line.
Next Steps to Secure Your Digital Wallet:
Open your Apple Wallet app right now and verify that your primary debit card is actually loaded and verified by your bank. If it says "Activation Required," you won't be able to get cash at an ATM or a register until you call your bank or use their app to authorize the device. Once that's done, look for the contactless symbol at your next grocery visit to test the terminal's compatibility.