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How to prevent credit card cashing
Precautionary measures for cashing out credit cards: legislation. In order to prevent the financial risks brought by credit card cashing, the first task is to clarify the nature of credit card cashing, and the constitutive requirements and punishment standards of illegal cashing must be strictly defined in law, so as to deter illegal cashing of credit cards in reality, ensure the safety of banks' funds and maintain the stability of financial order. Secondly, it is suggested to strengthen the legislation of bank cards. Bank card has become an indispensable financial tool in national life. The rights and obligations between bank card holders and card issuers and the balance of interests between card issuers and merchants need to be determined by more effective laws. The United States has clear regulations on consumer credit products, credit line, interest rate, guarantee, mortgage, insurance, repayment period and information disclosure, which has played an important role in standardizing and promoting the development of bank card consumer credit business. China's credit card legislation can learn from the successful experience of foreign countries, speed up the legislative progress, and ensure that there are laws to follow when dealing with bank card-related issues. Precautionary measures of card issuers. At present, the legal provisions are not perfect. While vigorously expanding credit card business, card issuers should strengthen their awareness of risk prevention, strictly examine the applicant's conditions before issuing cards, strictly approve the quota, and emphasize the risk control at the source of issuing cards. In the agreement with the special merchant, it is clear that the special merchant shall not assist the cardholder to cash out and strengthen his liability for breach of contract to restrain the behavior of the special merchant; Banks should share the illegal customer information system to avoid the same customer's repeated card handling; Introduce bank card insurance mechanism, cooperate with insurance companies, participate in insurance related to credit card risk, and reduce credit risk. Credit information system. Perfecting personal credit system and establishing social credit system as soon as possible are of great significance to prevent financial risks. In the future, on the basis of the establishment of the credit system, banks can query customers' credit files at any time through the customer's credit database, and quickly determine whether they can grant credit to customers and the credit line. You can also incorporate the bad behavior records of cardholders and merchants who participate in credit card cashing into the social credit information system to support relevant laws and regulations. As a new financing method, credit card cashing means that credit card users do not withdraw cash through normal procedures (ATM/ counter), but negotiate with merchants to withdraw cash in the name of swiping their cards. Specifically, the merchant will return the proceeds to the cardholder after swiping the card, so as to realize the conversion of funds into cash. Broadly speaking, cashing includes obtaining cash in various ways through credit cards.