Can online loans be paid by credit card? Yes.

However,

using overdraft credit card money to make some short-term investments and paying back the money within the bank's maximum 50-day interest-free period has become an investment method for some groups. However, legal professionals pointed out that this method involves illegal cashing out of credit cards and is extremely risky.

Use credit card investments to invest at zero cost and with high returns

Using online loan platforms to invest in credit cards has become a convenient way. The flow of funds on P2P online lending platforms is generally that investors (borrowers) first transfer money to the third-party payment account of the online lending platform, and then the online lending platform transfers the money in the third-party payment account to the lender's account. Currently, third-party payment accounts support credit card transfers. Investors transfer money to the third-party payment account of online lending platforms, just like online shopping, through consumption channels rather than cash withdrawal channels. There are many loan bids on major online loan platforms with monthly interest rates around 1.2. If an investor overdrafts RMB 10,000 from a credit card to invest, he or she can get interest income of about RMB 200 during the longest interest-free period of 50 days. The benefits don't stop there. Some investors said, "The more you spend with a credit card, the higher your credit rating, and the larger the overdraft limit you can have."

Some investors use credit card overdrafts to transfer funds to third-party payment accounts on online lending platforms. He also asked the online lending platform to transfer the principal and interest of the loan to his debit card account. A similar approach can also be implemented on Taobao. Currently, if you enter keywords such as credit card and cash out in the search bar on the Taobao page, some products will appear. After clicking to enter, you will find that there is no product introduction, but only some price tags ranging from a few thousand to 50,000. Investors only need to click to purchase this product and pay with a credit card. After receiving the money, the merchant will transfer the money to its debit card account, and the merchant will charge a certain handling fee according to different situations. It is understood that the third-party payment intermediary only charges a handling fee of two thousandths during the entire process. Investors who have cashed out their credit cards through online banking have begun to invest their funds in low-risk investments such as funds and bonds.

The lack of supervision obviously hides greater risks

Every online lending platform does not set restrictions on investors using credit cards to invest. It is reported that a considerable number of groups currently apply for several credit cards in multiple banks and invest through online loan platforms.

The Shanghai headquarters of the central bank made it clear on July 26, 2010 that it is illegal to use credit cards to cash out. Liu Shiqi, director of Guangzhou Shengrong's online business, said that online lending platforms are extremely vulnerable to using credit cards to cash out investments. Online loan platforms have no ability to prevent and prevent this because third-party payment supports credit card overdraft transfers.

At the beginning of this year, the central bank issued the "Measures for the Management of Internet Payment Business of Payment Institutions (Draft for Comments)", requiring "customers shall not use credit card overdrafts to recharge payment accounts." In February this year, Alipay announced that it would no longer support customers to use credit cards to recharge Alipay accounts, in order to combat online cash-out of credit cards. However, there are more than 100 third-party payment companies, and the channel for using the credit card overdraft function to recharge payment accounts is not completely blocked.

In an investment forum called "Yicaixun", there is a detailed summary of credit card experts and will constantly update credit card investment strategies, including different types of credit cards from different banks through different third-party payment channels. Different amount limits for recharging, etc.

Cao Hongjie of Yibao Pay Guangdong Branch said that third-party payment companies have been monitoring credit card accounts with frequent transactions, but it is still impossible to prevent all credit card arbitrage behaviors. Shu Baohua, a former lawyer at Bank of China Law Firm in Shenzhen, also said that using credit cards to cash out investments is illegal and carries great risks.