Banks focus on guarding against cash-out of credit cards

It is understood that different banks have different risk control measures for bank credit cards, but they all regard the macroeconomic environment as a very important reference standard.

A person from the credit card center of a joint-stock bank said that it is normal for banks to reduce credit card limits of customers, and it is also based on risk considerations. "To give an example, there were risks in the steel trade industry in the past two years. There will be certain risks in the business, and the bank will promptly reduce the credit card limit of this customer.”

In addition to macroeconomic environment factors, commercial banks will also consider whether there is suspicion of cashing out as a way to reduce the risk. Another important reference factor is the customer's credit card limit. However, each bank has different judgment standards in this regard.

A person from the credit card center of the above-mentioned joint-stock bank said that if the bank finds that a customer is suspected of cashing out or using points, such as cashing out through a fake POS machine, the customer's credit card will be reduced once discovered. "Cash-out is difficult to check. Banks don't know the flow of funds, but they can judge the signs of cash-out. For example, there are some data that the bank can check on the back end. In addition, banks can also check the amount of cash-out customers based on the amount of their card purchases. After analysis, the cash-out amount appears to be different from the normal consumption amount. If this abnormal consumption amount is regular, it does not rule out that the customer is suspected of cashing out," said a person from the credit card center of the above-mentioned joint-stock bank.

It is understood that banks have a relatively regular analysis method for customer consumption amounts. However, when it comes to specific data analysis methods and standards, a person from the credit card center of the above-mentioned joint-stock bank said that he repeatedly emphasized to reporters that confidentiality is required to "prevent customers who are prone to cashing out from understanding and breaking through the existing risk control methods" because "the bank is investigating credit card cashing out" It’s hard to get evidence.”

“Bank investigation and evidence collection is difficult and requires a lot of effort. However, banks also have conditions for limiting customer credit cards. For example, it is easy to identify whether there is suspicion of cashing out by swiping the card for some concentrated purchases. . If the bank accidentally injures a customer, the customer can contact the bank in time, and the bank will restore the credit limit after verification." said a person from the credit card center of the above-mentioned joint-stock bank.

A credit card business staff of a joint-stock bank said that the bank's credit card limit may be increased or lowered, but customers are accustomed to banks increasing their limits. In fact, the banking industry will only limit certain credit card limits. Customers suspected of risk will have their credit limit reduced. “In my country’s banking system, users’ card usage behavior can be queried. Banks can also check customers’ loan, credit card and other business status through the People’s Bank of China system. If it is found that customers have relevant bad records in other banks, it will also affect the bank’s Adjustment of customer limit. At the same time, if regulatory policies require the reduction of credit cards, banks will also make adjustments according to the policy. ”

There are generally four situations in which credit card limits are reduced

A listed company. A person from the bank's credit card center said that banks generally conduct risk control on credit cards through several links. Among them, the first is the credit review process, which is to review the applicant before issuing a card to determine whether he has the ability to repay and whether his credit record is good. "The second is risk management after the card is issued. For example, due to the cardholder's credit card being lost, stolen, malicious overdraft, etc., the bank will do a good job in stop payment management." Stop payment means that the cardholder has lost the card, or the bank finds that the cardholder has If the cardholder maliciously overdrafts or violates the credit card terms and conditions, he or she can stop payment, and the card cannot be used temporarily. "The aforementioned person from the credit card center of the listed bank said that there is also risk prevention and control during the transaction process, that is, when the bank discovers some suspicious transactions, it will identify whether there are risks. For example, someone has been trading domestically, and suddenly one day the bank discovers that the person If several foreign transactions are made in a row, the bank will take the initiative to call the customer to confirm whether it is done by him/her.

In summary, there are generally four situations in which the credit card limit is reduced: First, the bank believes that the credit card is suspected of cashing out; The second is that the payment is overdue for a long time or the overdue amount is large; the third is that the credit card account is abnormal. This situation is usually due to fraudulent use, and the limit is temporarily reduced with the consent of the cardholder to prevent greater losses due to fraudulent use; Fourth, the credit card has not been used for a long time after activation, or the amount and frequency of card consumption are seriously lower than the credit limit. “If the bank determines that the cardholder is cashing out but does not reduce the limit, the bank’s losses will become greater and greater.

"The credit card business staff of the above-mentioned joint-stock bank said that in the short term, credit card cash-out will cause limited losses to the bank, but judging from international experience, credit card cash-out may also bring financial risks. Once the business is a false transaction, customers will transfer their funds." Going back and forth, it is possible to cash out between different banks and borrow new money to repay old money. In the long run, when the financial environment is good, this kind of thing will not cause big problems, but in foreign countries, this kind of new money borrowing will not cause big problems. Repaying the old will accelerate the occurrence of financial crisis