Why the credit card cannot withdraw cash

The credit card status is abnormal:

That is, the credit card is frozen, stopped payment, card blocked, etc. In this case, it usually cannot be used The card is stuck, and I can't even make purchases with the card, let alone withdraw cash. I have to call the bank to see if there is a way to restore the credit card status to normal.

The withdrawal equipment failed.

If you are withdrawing cash from a self-service equipment such as an ATM, once the ATM machine fails and cannot enter the system, you will definitely not be able to withdraw cash. You can try another ATM machine, or go to the counter manually with your credit card. Withdraw cash.

No withdrawal option:

Use a credit card to withdraw cash from an ATM. The money is spit out from the ATM. If there is no money in the ATM, there may be no withdrawal option, or If there is no response when pressing withdrawal, you can also switch to an ATM machine or go to the counter to withdraw cash manually.

Insufficient cash withdrawal limit:

Withdrawing cash from a credit card does not mean that you can withdraw as much as the available limit on the card. Generally, you can only withdraw cash up to 50% of the credit limit, and only There are quota limits for cash withdrawals and single-day cash withdrawals. It is best to consult the customer service of the card issuing bank to find out.

Incorrect transaction password:

If the credit card transaction password is not set, or the credit card transaction password is entered incorrectly, this is the reason why the credit card has a limit and cannot withdraw cash. It should be noted that if the credit card transaction password is entered incorrectly three times in a row, the card will be blocked, which is more troublesome.

1. Credit card, also called credit card, is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit. It takes the form of a card with the name of the issuing bank, validity period, number, cardholder name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially appointed commercial service departments, and then the bank will make settlements with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

2. Credit cards stipulated in the relevant laws of our country ("Interpretation of the Standing Committee of the National People's Congress on Relevant Credit Card Provisions") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, An electronic payment card with full or partial functions such as transfer settlement, cash deposit and withdrawal, etc. On December 1, 2017, the "English Translation and Writing Standards in Public Service Fields" was officially implemented.

3. Credit cards are divided into credit cards and quasi-credit cards. A credit card refers to a credit card in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card A debit card refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve as required. When the reserve account balance is insufficient to pay, the card can be overdrawn within the specified credit limit. The so-called credit card generally refers to a credit card only.

4. Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiations, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. (The original upper limit was 0.5% of the daily interest rate, The lower limit is 0.7 times the daily interest rate of 0.5%).

5. The earliest credit card appeared at the end of the 19th century. In the 1880s, the British clothing industry developed so-called credit cards, and the tourism and business sectors followed suit. However, the cards at that time could only be used for short-term commercial credit, and the money still had to be paid as and when used. Long-term arrears were not allowed, and there was no credit line.

6. Credit cards are generally special carrier plastic cards with a length of 85.60 mm, a width of 53.98 mm, and a thickness of 1 mm. The name of the card issuer, validity period, number, cardholder name and other contents are printed on the front, and the name of the cardholder is printed on the back. Chip, magnetic strip, signature strip. Cardholders can use their credit cards to shop and spend money with special entities and deposit and withdraw cash from banks.

Credit card limit and why you can’t withdraw cash

The reason why you can’t withdraw cash if you have a credit card limit may be because:

1. Insufficient cash withdrawal limit:

Each credit card has a certain cash withdrawal limit, and the cash withdrawal limit of most credit cards is only 50% of the credit limit.

2. Abnormal card status:

For example, if it is frozen by the bank, you can only withdraw cash after the card is unfrozen and restored to normal status.

3. System failure or ATM machine failure:

For example, system upgrade, or ATM machine failure.

A certain amount of fees will be charged for withdrawing the overpaid funds when credit card customers repay the funds or the funds deposited in the credit card account. This amount can increase the available limit of your credit card or be used directly for consumption repayment.

If there is an overpayment on the credit card, the overpayment will be deducted first and then the credit limit. If the overpayment is greater than the consumption amount, there will be no overdraft. No interest is accrued on overpayment.

CreditCard is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit.

The form of a credit card is a card with the name of the card-issuing bank, validity period, number, cardholder name, etc. printed on the front. Consumers holding credit cards can go to a special commercial service department for shopping or consumption, and then The bank makes settlements with merchants and cardholders, and cardholders can overdraw within the prescribed limit.

The functions of credit cards:

1. It facilitates people’s lives and saves the trouble of carrying cash. There are no geographical restrictions on the use of credit cards. No matter when you swipe the card anywhere in the country, As long as there is a UnionPay logo, you can swipe it, and there is no handling fee;

2. You can participate in various discounts and discounts organized by merchants and banks;

3. You can get rewards by swiping your card for consumption Points can be redeemed for gifts;

4. Timely repayment after swiping the card can improve personal bank credibility.

Uses of credit cards:

1. Shopping.

2. Microcredit.

3. Save money.

4. Save money when shopping.

5. Credit card value-added services, get cheap insurance and travel.

6. Credit certificate.

Credit card cash withdrawal methods are:

1. Cash withdrawal at the counter:

Card holders can bring their credit card to any bank counter and submit a cash withdrawal application to the staff. , and then enter the withdrawal password with its help to withdraw cash.

2. Bind the card to withdraw cash:

The cardholder can bind the credit card to a peer savings card in credit card online banking, and then transfer the credit limit to the savings card. Then use the debit card to spend, this behavior is also called cash withdrawal.

3. Withdraw cash from an ATM teller machine:

Insert your credit card into the ATM teller machine, enter the payment password of the credit card, select cash withdrawal, then enter the cash withdrawal amount, and finally confirm.

The methods of credit card repayment are:

1. Repayment through ATM machine. Cardholders can go to the bank's ATM machine, insert the card for deposit, and deposit the money into the credit card to repay the money.

2. Mobile banking repayment. All major banks have mobile banking software. Once installed on your mobile phone, you can repay credit cards.

3. Alipay repayment. Alipay has a credit card repayment function. Click "Credit Card Repayment" on the homepage to repay after binding the credit card.

4. WeChat repayment. There is a credit card repayment function on WeChat. Click "Me" - "Pay" to see the "Credit Card Repayment" function.

5. Repayment at bank counter. Cardholders can go to bank branches with their credit cards, ID cards and cash and handle credit card repayment over the counter.

They all create profits for banks. Why is it legal to withdraw cash by credit card, but illegal to cash out?

People who often use credit cards have probably heard of cashing out, and some people use credit cards to withdraw money directly from ATM machines or bank counters. Although both methods can create profits for banks, in fact cashing out It is an illegal act. The main reason why cashing out is illegal is that cashing out is a fictitious transaction, and the related funds cannot be effectively supervised. At the same time, cashing out still involves great risks.

Cash-out is a fictitious transaction, which is essentially a defrauding of bank funds.

The main purpose of banks launching credit cards is to meet people’s consumption needs. According to the regulatory policies of relevant national departments, credit cards can only be used for consumption, and consumption must be in real scenarios. At the same time, banks also It provides consumers with an interest-free period of up to 50 days, which can promote social and economic development and consumption. But if people use credit cards to cash out, the relevant transaction activities are not based on real consumption scenarios.

In fact, in essence, credit card funds are also a type of loan funds. For most people, it is very difficult to obtain a loan from a bank, requiring a large amount of information and even a mortgage. But credit cards are different. They are very simple to apply for and use. If a credit card holder uses the credit card to cash out for commercial purposes to carry out production and business activities, this is a serious illegal act. If the amount is too large, it may be suspected of loan fraud, and the consequences are actually very serious.

It is precisely because cashing out is a fictitious transaction that violates relevant laws and regulations, and is essentially a defrauding of bank funds, so cashing out is an illegal act. Credit card cash withdrawals are different. For most banks, the credit card cash withdrawal limit is generally only half of the total credit card limit, and there is no interest-free period. Due to the high cost of use and no minimum repayment, it is very difficult for people to use it. careful.

Cash-out funds are difficult to effectively supervise and are very dangerous.

There is another important reason why cashing out is illegal, that is, the funds used for cashing out cannot be effectively supervised by the state. Currently, the state stipulates the use of credit cards, and credit card funds can only be used for consumption. If it is used in the commercial field or in purchasing real estate, investing, or repaying loans, these are violations of national regulatory policies.

But in fact, it is difficult for banks and regulatory authorities to effectively supervise the funds obtained by using credit cards to cash out, and they simply do not know what fields these funds are used in. If cardholders use these funds in high-risk areas, it will have a great impact on the security of bank funds.

In fact, banks’ funds mainly come from depositors’ savings. The interest difference between deposits and loans is the bank’s main source of profit. The existence of cash-out behavior has brought negative consequences to the normal development of the bank’s various businesses and the security of funds. It is a huge threat. For security and regulatory reasons, using credit cards to cash out is also an illegal act and is severely cracked down on by the state.

Once the financial status of cardholders changes, it will bring great uncertainty.

If the cardholder uses up all the credit card limit by cashing out, and the cardholder's financial situation changes later and they are unable to repay the credit card, the problem of credit card overdue will arise, and for most credit cards For cardholders, they hold more than one credit card. This determines that once there is an abnormality in a bank's credit card, it will cause the cardholder's capital chain to be broken. In this case, it will be difficult for the bank to recover it. own funds.

In short, although cash withdrawals and credit card cash withdrawals can bring profits to banks, considering the series of uncertainties that cash withdrawals bring to the normal operation and development of banks, regulatory authorities cannot tolerate this kind of behavior. Illegal behavior. In this case, it is normal to include cashing out as illegal behavior. I believe that the intensity of the crackdown will continue to increase in the future.

Why is it illegal to cash out on a credit card?

Credit cards have become a "must have" for people nowadays, and many people regard credit as a temporary emergency. This is also the "original intention" of banks issuing credit cards. But now many young people have used credit cards indiscriminately, and many people have used credit as a tool to make profits. According to statistics, the number of credit cards in my country has reached 600 million in 2018, and the overdue amount of credit cards in my country has reached 80 billion yuan in 2018. This year, many banks have increased their risk control over credit cards, and many credit cards have been "sanctioned" by banks in this wave of "risk control."

According to statistics, the number of credit cards in my country has reached 600 million in 2018, and the overdue amount of credit cards in my country has reached 80 billion yuan in 2018. This year, many banks have increased their risk control over credit cards, and many credit cards have been "sanctioned" by banks in this wave of "risk control." Among them, the most likely thing to attract the attention of the bank is cashing out. Many people know that using a credit card to cash out is a very serious violation. In serious cases, the bank will even hold you criminally responsible. In layman's terms, we can understand that credit cards can be overdrafted. Credit cards are now widely used in our lives. However, credit cards also allow some people with poor "determination" to often overdue or over-spend, which has also led to many people cashing out their credit cards this year. In fact, using a credit card to withdraw cash from a bank requires a large handling fee.

Moreover, the monthly interest rate when withdrawing cash with a credit card is more than 1.5%, which means that if you withdraw 10,000 yuan in cash with a credit card, the bank's monthly interest will be 150 yuan, not counting the handling fee for your cash withdrawal. Moreover, according to the latest regulations of the bank, the minimum repayment cannot be made when the cash withdrawal is due during the monthly repayment period, and must be paid off in one lump sum.

Compared with cash withdrawal, the advantage of "cash-out" lies in its flexibility. Some illegal cash-outs are tools for some people to seek benefits. Moreover, illegal cashing out can easily lead to the leakage of your personal information, which may eventually lead to bank card theft and unnecessary losses.

It is legal to withdraw cash by credit card, but it is illegal to cash out. Why?

The reason is that credit card withdrawals require certain fees and interest. There is no need to cash out. Generally, after you cash out the money in the same month, you can pay it back in one lump sum the next month. Therefore, no handling fees and interest will be charged. The act of cashing out will be recorded in the personal credit check system, which will affect future personal loans, credit card processing, and even affect all aspects of daily life, such as flying and taking trains.

What is the difference between credit card cash withdrawal and cash out?

Fees vary widely. There are two fees for withdrawing money with a credit card, one is the withdrawal fee and the other is the interest on the withdrawal amount. For example, Bank of China will charge a 10% RMB handling fee for each transaction, which is probably the lowest. Quantities vary greatly. A credit card's maximum withdrawal limit is the same as your credit limit. The withdrawal limit of many banks' credit cards is only half of the credit limit, but many tellers need to use a large amount of funds, and the withdrawal limit of funds is naturally unable to meet the demand.

What are the dangers of using credit cards?

At present, POS withdrawal is one of the main withdrawal methods. Some illegal intermediaries will help cardholders pass the card and hand over the money to the cardholder, but this is not free, but charges a handling fee of up to 3%. Of course, the dangers of cashing out go beyond just spending more money. Cashing out itself is illegal and does not comply with regulations. Earlier, the central bank had reminded that credit cards cannot be cashed out. ***1,420 institutions were punished and fined 1.155 billion yuan. Many institutions were punished for their credit card business.

How will banks deal with cash-out situations on credit cards?

For example, the Bank of China said it has begun to strengthen supervision of credit card business, including issuance and trading. Once illegal funds and other behaviors are discovered, Bank of China will punish them in accordance with relevant regulatory requirements. Cardholders who are caught making withdrawals by the bank will also be subject to corresponding penalties. All major banks have stated that once a withdrawal is discovered, the cardholder's credit card may be directly frozen, the limit may even be reduced, the credit card may be sealed, etc.

That’s it for the introduction of why credit cards cannot be cashed out.