Why would they have to apply for credit? Payal is holding your...

Why would they have to apply for credit? Payal is holding your cash as would a bank, there is zero risk. As for cashbacks, why would the merchant pay for it other than indirectly as per any other transaction. I'd be expecting customers to pay for loyalty programs along with merchants.

This is part of the rapidly changing infrastructure that even banks and card companies can only try to keep up with. Single service businesses have to try to piggy back others but they are nobbled