Of course, we can clearly know from the laws and regulations that it is illegal for cardholders to cash out with credit cards. If found, the credit card limit will be reduced or cancelled, and the bank can report the case to the public security organ for criminal charges on suspicion of credit card fraud. However, the withdrawal of credit cards is legal and compliant, and the amount that can be withdrawn is clearly stipulated in the management measures.
Many people think that these two methods end up withdrawing money from credit cards, don't they? From the cardholder's point of view, they all got the money, but the nature of the money is different. Cash withdrawal by credit card means that the cardholder owes money to the bank or borrows a cash withdrawal amount from the bank. Credit card cashing is a fictitious consumption transaction, and merchants and cardholders conspire to apply for a sum of money from the bank, which is a serious bank fraud.
In addition, the original restrictions are completely different. Each bank has a clear withdrawal limit for cardholders, which generally does not exceed 50% of the credit line of credit cards. However, credit card cashing is not the case. Theoretically, 100% of the credit card limit can be withdrawn and turned into cash. So how risky is it for banks!
Of course, another point is that these two behaviors are also very different from the income brought by banks. If the bank needs to charge a handling fee for withdrawing cash from the credit card, it is generally 1%, and the interest is calculated from the day when the cardholder withdraws the cash, and how much interest is calculated in a few days. Credit card cashing, because it is a kind of commodity purchase and consumption on the surface, banks can charge very little credit card handling fee from merchants at most.
At the same time, because the longest interest-free period of bank credit cards is 45 days, banks will not receive any interest income during this process. All the profits are earned by those intermediaries or businesses that cash out.
Of course, from the perspective of anti-money-laundering, credit card cashing is an obvious money-laundering behavior, because it covers up the true face of this transaction. Moreover, funds may be used in directions strictly prohibited by the state, such as buying houses, investing in stocks or engaging in illegal activities, which also seriously disrupts the financial order of the country.
In the past two years, the blow to credit card cashing has been very severe. Credit card cashing is actually harmful to others. There are more and more debts in the market, and robbing Peter to pay Paul will make the hole bigger and bigger in the long run. Therefore, everyone should resolutely resist the credit card cashing behavior together.