The essential characteristic of credit card cash-out is to directly convert the credit limit in the credit card into cash through deception. Since the cash-out funds have separated from the normal credit management channels of banks and escaped the management sight and control of regulatory authorities, they have seriously damaged the management order of my country's financial market and planted unstable factors for the country's overall financial order. Therefore it is illegal to cash out on a credit card.

So what is the penalty for cashing out credit cards?

Violating national regulations, using point-of-sale terminals (POS machines) and other methods to charge credit cards with fictitious transactions, false prices, cash returns, etc. If the cardholder pays cash directly, and the circumstances are serious, he shall be punished for the crime of illegal business operation in accordance with the provisions of Article 225 of the Criminal Law.

Previously, due to the lack of clear legal basis, the bank card industry could only impose soft penalties such as withdrawing POS machines and suspending transactions on merchants who were cashing out. There has been a lack of effective means and it was difficult to Effectively curb the spread of arbitrage behavior at the source.

Relevant legal content

Those who violate national regulations by using point-of-sale terminal equipment (POS machines) and other methods, and the circumstances are serious, shall be prosecuted in accordance with Article 225 of the Criminal Law It stipulates that people will be convicted and punished for the crime of illegal business operations.

Any person who commits the acts mentioned in the preceding paragraph and the amount exceeds 1 million yuan, or causes overdue repayment of more than 200,000 yuan of funds of a financial institution, or causes economic losses of more than 100,000 yuan to a financial institution, shall be deemed as " "Serious circumstances" as stipulated in Article 225 of the Criminal Law; if the amount exceeds 5 million yuan, or causes overdue repayment of more than 1 million yuan of financial institutions' funds, or causes economic losses of more than 500,000 yuan to financial institutions, It should be determined as "particularly serious circumstances" as stipulated in Article 225 of the Criminal Law.

If a cardholder uses the above method to maliciously overdraft for the purpose of illegal possession and should be held criminally responsible, he will be convicted and punished for the crime of credit card fraud in accordance with Article 196 of the "Criminal Law".