Let me tell you a similar legal issue.

If one person borrows a large amount of money from another person, and if the reason for borrowing the money is real, such as buying and selling, then there will be no repayment after maturity in the future, this is just a private lending dispute. If the reason for borrowing money is actually false and the amount reaches a certain level, then it is likely to be suspected of a criminal offense and is a crime of fraud. This change is similar to the difference between credit card cash withdrawals and cash withdrawals.

Of course, we know clearly from laws and regulations that the credit card management regulations clearly stipulate that it is illegal for cardholders to cash out their credit cards. If it is found that the credit card limit will be reduced or canceled, the bank can report the case to the public security agency and criminally charge it with credit card fraud. However, credit card cash withdrawals are legal and compliant, and the management regulations clearly stipulate the amount of cash that can be withdrawn.

Many people think that these two methods will ultimately withdraw money from the credit card? From the cardholder's point of view, they do get money, but the nature of the money is different. Credit card cash withdrawal means that the cardholder owes money to the bank or borrows a cash withdrawal amount from the bank. A credit card cash-out is a fictitious consumer transaction. Merchants and cardholders conspire to apply for a sum of money from the bank, which is a serious fraud on the bank.

In addition, the original quota is completely different. Each bank has a clear cash withdrawal limit for cardholders, which generally does not exceed 50% of the credit card credit limit. This is not the case with credit card cash out. Theoretically, 100% of the credit card limit can be withdrawn and turned into cash. So what a risk this is for banks!

Of course there is another point. Regarding the income brought by banks, the two behaviors are also very different. Credit card cash withdrawals require banks to charge a handling fee, which is usually 1%. The interest is calculated from the day the cardholder withdraws cash, and how many days it takes to calculate the interest. As for cashing out with a credit card, since it is superficially a purchase and sale of goods, the bank can charge at most a small credit card processing fee from the merchant. At the same time, since bank credit cards have a maximum interest-free period of 45 days, the bank will not receive any interest income during this process. All the profits are made by those cash intermediaries or businesses.

Of course, from an anti-money laundering perspective, credit card cash-out is an obvious money laundering behavior because it conceals the true face of this transaction. What's more, the funds withdrawn 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 country's financial order.

In the past two years, the crackdown on credit card cash-out activities has been very severe. Credit card cash-out actually harms others but does not benefit oneself. Market players are taking on more and more debts, and tearing down the east wall to pay for the west wall will lead to bigger and bigger losses in the long run.

So we must unite and resolutely resist credit card cash out. Related Q&A: How to repay when withdrawing cash with a credit card? You can repay in the following ways: 1. The first method is to repay at an outlet. You can go to the card-issuing bank branch and repay the credit card at the counter; 2. The second method is to repay at an ATM machine. You can insert a credit card into an ATM machine to deposit money and repay, or you can insert a bank card to transfer money to the credit card and repay; 3. The third method is to repay through the credit card app. You can log in to the APP of the credit card you hold, then find the bill and click "Credit Card Repayment". : Credit card cash withdrawal is different from credit card cash withdrawal. Credit card cash withdrawal is one of the inherent functions of the credit card itself. Cardholders can use the credit card to withdraw cash from the bank. Credit card cash withdrawal mainly includes overdraft cash withdrawal and overpayment cash withdrawal. Overdraft withdrawals require interest, and interest is calculated from the day you withdraw cash, while overdraft withdrawals do not require interest and only require a partial handling fee, depending on the regulations of each bank. It should be noted that the bank card logo under the Visa International Credit Card Organization is VisaElecronInterlinkPlusVisa cash. Among them, Visa's credit card allows cash withdrawal and overdraft. Debit cards under ElecronVisa can withdraw cash but cannot be overdrawn. PlusVisa's ATM cards can only withdraw cash and cannot be overdrawn. InterlinkVisa's Interlink debit card allows cash withdrawals but cannot be overdrafted. Credit card cash withdrawals and card swiping purchases are inherent functions of credit cards, and they will consume the available credit limit of the credit card. Similarly, it will be restored again after repayment.

So, do you know the difference between credit card cash withdrawal and credit card swiping? The specific differences between credit card cash withdrawal and credit card swiping include the following: 1. Different concepts Credit card cash withdrawal means that the credit limit granted to the cardholder by the card issuing bank or institution can be used for cash advance or transfer The limit; credit card consumption means that the cardholder directly exchanges money for goods when purchasing goods. 2. Limits on cash withdrawals with different credit cards. The amount that can be withdrawn in each period is generally 30% or 50% of the fixed limit of the credit card; there is no limit for credit card consumption within the available limit of the credit card. 3. Enjoy the interest-free period for cash withdrawals with different credit cards: you do not enjoy the interest-free period. From the date of withdrawal, interest will be charged daily based on 50,000% of the withdrawal amount; credit card swiping: there is a certain interest-free period, and you can enjoy the interest-free period before the repayment date. interest period. 4. Points rules are different. Credit card cash withdrawals: Generally speaking, points cannot be calculated. Credit card swiping: Except for the special categories specified by major banks, credit card swiping purchases can accumulate points. In addition, there are certain handling fees for credit card cash withdrawals, and each bank's charging standards are different. However, if a credit card is swiped and only the minimum repayment amount is paid on the repayment date, interest will be charged on the unpaid portion at a rate of 0.05% per day. If you fail to pay even the minimum repayment amount, you will not only have to pay interest but also have late fees, and you will also have a bad personal credit record. Related Q&A: I am in a hurry to spend money recently. I heard that I can withdraw cash with a credit card. Is it a good deal?

Credit cards were born at the end of the 19th century. In the 1980s, with the reform and opening up and the development of market economy, credit cards entered China and became rapidly popular, achieving great development by leaps and bounds. Over the past few decades, people's attitude towards credit cards has changed from suspicion and distrust to now dependence.

Why are credit cards so popular?

There is no doubt that credit cards have brought many conveniences and benefits to our lives. Its biggest advantage is that it can be used as an overdraft without depositing money, and it enjoys a certain interest-free period. Secondly, it is safe and convenient to spend with a credit card, and you can also accumulate points by swiping a credit card. In addition, you can enjoy discounts by swiping your card at some banks' designated merchants. More importantly, credit cards can be used to withdraw cash or make purchases at ATMs and POS machines with the UnionPay logo. They are accessible nationwide, and visa cards can also be used for cross-border payments. It is no exaggeration to say that with a credit card, we can travel around the world.

One of the important functions of a credit card is to withdraw cash, which exists in two ways.

The first is overdraft cash withdrawal. The credit limit provided by banks to credit card customers can not only be used for card consumption, but part of it can be used by withdrawing cash. The second is overpayment withdrawal. The funds overpaid by credit card customers during repayment or the funds deposited in the credit card account are overpayments. A certain amount of fees must be paid to withdraw the overpayments. This amount can increase the available limit of your credit card or be used directly for consumption repayment. If there is an overpayment on the credit card, the overpayment will be deducted first and then the credit limit. If the overpayment is greater than the consumption amount, there will be no overdraft.

Although there is no handling fee for withdrawing overpayments from local banks with credit cards of many banks, since overpayments are not interest-bearing, very few people use the method of withdrawing cash from overpayments in daily life. Most of them are overdraft withdrawals.

It is true that overdraft withdrawal is very convenient when you need cash urgently. While we enjoy the convenience brought by credit card withdrawal, we must also pay attention to its disadvantages.

First of all, the overdraft cash withdrawal limit is limited. It is set according to the cardholder's card usage. The maximum limit does not exceed 50% of the cardholder's credit limit. The daily limit for ATM cash withdrawal per person and card is 2,000. . Secondly, overdraft cash withdrawals are not free. Overdraft cash withdrawals at home and abroad must also pay interest. Although some banks can enjoy interest-free treatment, the handling fees will not be waived. With a clear understanding of its pros and cons, we can better assess the risks and make a choice.

Nowadays, credit card consumption has become one of the main consumption methods of contemporary young people. In order to avoid missing out on their favorite products, many people choose to use credit cards to overdraft consumption or pay in installments to reduce the current financial pressure. . The formation of this consumption concept reflects a major problem in today's society - rampant consumerism. Once you spend blindly or excessively, if you cannot repay on time, it will cause overdue records and affect your personal credit.

For individuals, advanced consumption must be highly consistent with their expected income ability. Excessive consumption is by no means blind waste, consumption that exceeds one's expected income level and leads to high debt.

Advanced consumption that is controlled within expected income should be encouraged; otherwise, it should be restricted.