According to CCTV Finance:

Credit cards allow you to consume first and then repay, which is a favorite payment tool for many people. At present, more than 800 million credit cards and debit cards have been issued in my country. However, banks have requirements for the use of credit card funds. Recently, many banks have issued announcements to strengthen the management and control of credit card funds.

The Agricultural Bank of China recently issued an announcement that it will gradually close credit card tobacco withholding transactions starting this month. Previously, many banks including Postal Savings Bank, China Construction Bank and other banks have also successively issued announcements clarifying that credit card funds support consumption. , but does not support real estate transactions and investments.

Rong Hejun, deputy general manager of the Beijing Branch of the Bank of Communications Credit Card Center, said that transactions including property taxes, down payments, investments, financial management, funds, and insurance are not allowed. Including wholesale goods, such as tobacco withholding and payment, these cannot be used for transactions, but if individuals conduct retail sales of tobacco, they can be traded.

Previously, the China Banking and Insurance Regulatory Commission clearly stated that banking financial institutions should accurately monitor and control the actual use of credit card funds. Credit card funds must not be used to repay loans, investments, etc., and are strictly prohibited from flowing into policy-restricted or prohibited areas.

Experts point out that banks’ strengthening of capital control will also help prevent credit card cash-out, theft and other behaviors. Merchants who swipe their cards illegally will be blacklisted by the bank and have their credit card transactions suspended. Cardholders must also bear corresponding consequences if they make illegal transactions.