Cash-out funds are out of the normal credit management channels of banks and the management sight and control of regulatory authorities, which seriously undermines the management order of China's financial market and lays an unstable factor for the overall financial order of the country. So it is illegal to cash out credit cards.
In violation of state regulations, cash is paid directly to credit card holders by means of fictitious transactions, false pricing, cash return, etc. by means of point-of-sale terminal equipment (machines). If 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 a clear legal basis, the bank card industry could only impose soft penalties on cash-out merchants, such as taking back equipment and stopping transactions, and it was difficult to effectively curb the spread of cash-out behavior from the source. The introduction of judicial interpretation will effectively curb the illegal behavior of cash-out merchants.