Problems with movePosition

I’m having some problems with how movePosition behaves. Here’s a picture that illustrates this: http://imgur.com/zct7E2d

The Z coordinate of the player (smaller cube) is 2.95, but the wall of the cube is at 3. I guess movePosition checks for physics problems after the object is moved, which poses a problem. When I run into solid objects, the player will look like it goes inside the object .05 units. Is there any way to fix this? Thanks for your time.

From my understanding, moveposition is more so meant for kinematic rigidbodies

Or Maybe you can lower your default contact offset in the edit - project settings - physics

No, moveposition can be used for either or.