You can withdraw cash with a credit card but cannot cash it out. What is the difference between withdrawing cash with a credit card and cashing out cash? I believe that many cardholders do not understand this issue. Regarding this, I will introduce to you the difference between credit card cash-out and cash withdrawal.
When you cash out a credit card, you don’t give the bank any money or give the bank a small amount of money. When you withdraw cash, you need to give the bank some more money.
The handling fees charged by companies that provide credit card cash-out services on the market are mostly between 1 and 2. When withdrawing cash from banks with credit cards, the fees charged by various banks vary greatly. In addition to the cash withdrawal handling fee , an interest of five ten thousandths will be charged every day. For example, if you withdraw 10,000 yuan with a credit card, if you want to cash out, choose one with a lower handling fee, and pay it back a month later, it will only cost 100 yuan in handling fees; if you withdraw cash from a bank, even if it is a Minsheng account that does not charge a handling fee Banks also charge an interest of 150 yuan a month, not to mention that more banks charge a handling fee of around 1 when withdrawing cash. If you also occupy a bank of 10,000 yuan a month, it may cost 250 yuan to withdraw from the bank. This is a cash-out procedure. The fee is 250 yuan. If the cardholder uses a credit card from China CITIC Bank or Shanghai Pudong Development Bank, a handling fee of 3 yuan will be charged, which may cost 450 yuan a month. The cardholder will decide which is more important.
Most banks set the credit card cash withdrawal limit to 50% of the total limit, and some banks limit the cash withdrawal limit for a single day. These regulations discourage customers who need to withdraw large amounts of cash and choose to go to intermediary companies to cash out. Not only save money, but also save trouble.
When banks cooperate deeply with merchants, banks will provide some preferential conditions to some merchants, such as large-amount installment cooperation with these merchants. When cardholders swipe their cards at these merchants, they can spend one or more times higher than their credit limit and then pay in installments.
This merchant can provide cardholders with large-amount cash-out services, and then allow cardholders to pay in installments to earn handling fees from cardholders. Since there are not many merchants that can cash out large amounts in installments, the handling fees charged are also higher.
If the cardholder repays the loan on time, everything can proceed step by step, and even show a thriving and optimistic consumption scene. However, if there are changes in the cardholder's work and life and cannot repay the loan as scheduled, the bank's collection department will Something to do.
In fact, banks charge high fees not only to make profits, but also to suppress cardholders’ cash withdrawal behavior through high fees, thereby reducing risks. However, this kind of suppression can only inhibit the soft demand of cardholders, and generally cardholders will not use credit cards to withdraw cash, so most of the cash withdrawal behavior is caused by rigid demand. I was short of money and the bank was charging too much, so I had to find a cash-out intermediary to do it. However, there are risks for cardholders to cash out from intermediaries. They are all risks. Why not control them yourself? Moreover, the bank will handle the cash withdrawal business itself, which will make the risk control clearer. At the same time, the handling fees collected by the cash-out intermediary will also be transferred to the bank. In his own name.