What many friends who have multiple credit cards like to do most is to use credit cards to transfer to each other to repay, that is, to use the money from one credit card to repay another credit card, and then transfer the other credit card to repay. The money from one card is paid back to this card, and the cycle repeats. So, is it illegal to transfer credit cards to each other like this? What will be the consequences? Come with me to find out.

1. Whether it is illegal to transfer credit cards to each other depends on the situation

There are generally two ways to achieve mutual transfer of credit cards. One is to use point-of-sale terminals (POS machines) and other methods. Swiping out credit card money through false transactions is also commonly known as cashing out; one is to withdraw credit card money through cash withdrawal.

The former is obviously illegal, because the purpose of banks issuing credit cards is to promote consumption. Although it also supports the use of cash, it requires that cash must be withdrawn through an ATM machine or counter. Like this other It is strictly not supported to withdraw the funds within the credit limit of the card in the form of cash.

2. What are the consequences of transferring credit cards to each other?

No matter which method is used to transfer credit cards to each other, it is a kind of practice of tearing down the east wall to make up for the west wall. If the root cause of the problem is addressed, the money owed on the credit card will still exist.

If you use cash withdrawal to reverse the card, you will owe more and more money. In addition to the principal, you will also incur cash withdrawal interest and handling fees, which is quite uneconomical.

And if you cash out your credit card, it is easy to be risk controlled by the bank. After all, banks have their own anti-fraud departments and risk identification systems, which can identify risky transactions through manual inspection of big data. If the bank recognizes that you are cashing out, it will at least reduce your credit limit and block the card, or at worst, it will pursue your legal liability.

All in all, no matter whether it is illegal to charge back credit cards, there are still certain risks. We should avoid this practice and use cards in compliance with regulations is the long-term solution.