Malicious cash-out is to change the purpose of funds through false transactions and use the withdrawn funds for illegal purposes or other prohibited purposes. Take advantage of the subtle differences in prices between the same product or nearly identical products in different markets. In December 2009, the Supreme People's Court and the Supreme People's Procuratorate issued the "Interpretation on Several Issues Concerning the Specific Application of Laws in Criminal Cases of Obstructing Credit Card Management."

What are the penalties for malicious arbitrage?

Our country has the "Cash Management Regulations", the "RMB Management Regulations", and in terms of bills, there is the "Negotiable Instruments Law".

Although bank cards have been on the market for many years, the "Bank Card Management Regulations" have not yet been promulgated. At present, the main regulatory documents that regulate the bank card business are the "Payment and Settlement Management Measures" and the "Bank Card Business Management Measures", but these two measures are departmental regulations.

According to the industry, if cash-out behavior is discovered at cash-out points, UnionPay or banks can only close their POS terminals and withdraw the machines. Since there is no law enforcement power, further processing requires the help of the public security and industrial and commercial departments. For cash-out cardholders, banks can only freeze their accounts and put them on a "blacklist" and cannot impose more severe penalties.

However, there are two voices in the legal community regarding whether cashing out on credit cards is illegal. Some lawyers believe that there is currently no law stipulating that cardholders cannot cash out. Cashing out should be classified as malicious or non-malicious. As long as the cardholder repays the card on time and maintains good credit, then such a cash out cannot be called a malicious cash out and does not violate national laws. Take fake consumption as an example. The act of withdrawing cash is not illegal in itself, because like any consumption, the bank earns handling fees from it, and the merchants also have to pay business tax. It is just that the cardholder is exempted from the 50,000th of the fee for 50 days. interest.

Only if you fail to repay in time after cashing out, or use a fake ID card to apply for a credit card, and maliciously swipe your card to spend and cash out, you will violate the law.

"Generally speaking (cash-out) should not be illegal." Lawyer Zhou Jianqiang believes that the "notice" is an internal regulation and has no legal effect. However, the essence of credit card cash-out is that merchants collude with cardholders to maliciously obtain a certain amount of loans from banks in the name of consumption, so they are already suspected of loan fraud, which to some extent constitutes loan fraud suspected of fictitious facts.