Because direct cashback involves credit card cashing, the merchant is suspected of cashing for others, and the circumstances are serious enough to constitute the crime of illegal business.
According to Article 225 of the Criminal Law, anyone who engages in illegal business activities, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also, or shall only, be fined not less than one time but not more than five times the illegal income; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined not less than one time but not more than five times his illegal income or his property shall be confiscated.
Article 7 of the Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues Concerning the Specific Application of Laws in Handling Criminal Cases of Impairment of Credit Card Management, in violation of state regulations, directly pays cash to credit card holders by means of fictitious transactions, false pricing, cash return, etc., and if the circumstances are serious, he shall be convicted and punished for the crime of illegal business operation in accordance with the provisions of Article 225 of the Criminal Law.
If the cardholder maliciously overdraws in the above way for the purpose of illegal possession and should be investigated for criminal responsibility, he shall be convicted and punished for credit card fraud in accordance with the provisions of Article 196 of the Criminal Law.