Arbitrage is a means of making profits during the operation. As long as you operate it legally, it is not a crime. The following behaviors are all illegal arbitrage.

1. Violating national regulations by paying in RMB or repaying in kind import payments or other similar expenditures that should be paid in foreign exchange, except for legal barter trade;

2. Using RMB to pay domestic expenses for others, and the other party pays foreign exchange;

3. Knowingly providing RMB funds or other services for illegal arbitrage;

4. Fraudulently purchasing foreign exchange from a designated foreign exchange bank using false or invalid vouchers, contracts, documents, etc.;

5. Illegal arbitrage in other ways.

1. Classification of credit card arbitrage behavior

1 is the personal behavior of the cardholder. The cardholder plays the trick of "other people swipe their own card for consumption" and uses the account of other people's purchases. You can add points to your card by swiping them, and at the same time, shoppers will return cash to the cardholder. This is a double benefit to the cardholder. Because many banks have launched value-added services when issuing credit cards, and launched activities such as exchanging consumption points for gifts to stimulate people's enthusiasm for applying for cards and spending.

2. The cardholder cooperates with the merchant or some "loan company" or "intermediary company", and the cardholder obtains cash by paying the merchant a handling fee. Generally, the merchant's POS machine is used to conduct false transactions, and the amount on the credit card is transferred. The merchant or "loan company" or "intermediary company" pays cash on the spot (paying cash to the cardholder), and the cardholder pays the merchant The handling fees are lower than those of banks.

3. Cardholders use the services of some websites or companies to cash out, such as using "Alipay" or China Mobile's "online purchase of recharge cards" services.

4 is to cash out small amounts without handling fees. The method is that in some shopping malls or other places where credit cards can be used for consumption, the cardholder pays in cash when checking out, and the cashier will collect the cash first and wait for the customer. After leaving, use your own credit card to withdraw the corresponding consumption, thereby achieving the purpose of cashing out a small amount.

2. The directly responsible supervisor and other directly responsible personnel will be given major demerits; if the circumstances are serious, they will be demoted or dismissed; if the circumstances are serious, they will be dismissed:

(1) Defrauding fiscal funds by false declarations, false claims, etc.

(2) Withholding and misappropriating fiscal funds

(3) Detaining fiscal funds that should be allocated

(4) Violating regulations to expand the scope of expenditures and raising expenditure standards

(5) Other acts of using or defrauding fiscal funds in violation of regulations.

3. The Supreme People’s Procuratorate and the Supreme People’s Court’s interpretation of several issues concerning the specific application of laws in handling criminal cases of credit card fraud states that criminal activities that use credit cards to defraud property are punished in accordance with the law. The specific application of laws in handling such cases is now The explanation of the problem is as follows:

1. For those who apply for credit cards at banks by forging or fraudulently using ID cards and business licenses, or defrauding property by forging, altering, or fraudulently using credit cards, if the amount is relatively large, Pursued criminal liability for fraud.

For the purpose of illegal possession, or knowing that they were unable to repay, they used credit cards to maliciously overdraft, defrauding property worth more than 5,000 yuan, and evading investigation, or the bank continued to demand repayment for more than three months. Those who fail to return the money will be held criminally responsible for fraud. If the cardholder pays a deposit at the bank, the amount of the malicious overdraft will be calculated as the amount exceeding the deposit.

3 If the perpetrator's malicious overdraft constitutes a crime, and if all the overdraft interest has been returned after the incident and before prosecution by the People's Procuratorate, he may be given a lighter or reduced punishment or be exempted from criminal liability.

4 Bank staff who commit the above-mentioned criminal acts shall be severely punished in accordance with the law.

In short, cashing out violates relevant regulations, and malicious overdraft violates criminal law. As a rising China, the economy is moving towards globalization, and laws and regulations in some economic fields are in line with developed countries. Credit card business is an important product and profit in retail financial business. Source: Citibank's credit card business revenue accounts for 1/3 of the total net profit, and the profits from the Express card issued by American Express account for 70% of the company's total profits. It is not difficult to imagine that one day in the future, foreign banks will use the slogan "CASH OUT" in China. If domestic banks still stick to the old rules, they will be eliminated by history.

Legal basis:

Article 40 of the "Regulations of the People's Republic of China and Foreign Exchange Administration" (State Council Order No. 532):

Violation It is stipulated that payments that should be received and paid in RMB in foreign exchange, or illegal arbitrage such as fraudulent purchases of foreign exchange from financial institutions that engage in foreign exchange settlement and sales business with false or invalid transaction documents, shall be ordered by the foreign exchange management authority to investigate the illegal arbitrage. If the funds are redeemed, a fine of not more than 30 RMB for the illegal arbitrage amount will be imposed; if the circumstances are serious, a fine of not less than 30 RMB but not more than the equivalent of the illegal arbitrage amount will be imposed; if a crime is constituted, criminal liability will be pursued in accordance with the law.