What Is a Merchant Cash Advance?

Cash out, short for cash withdrawal, generally refers to obtaining cash benefits in exchange for illegal or false means. Mostly used for credit card cash, provident fund cash, securities cash, etc. According to the "Interpretation of Certain Issues Concerning the Specific Application of Laws in Criminal Cases That Hurt Credit Card Management", cashing refers to the use of point-of-sale terminals (POS machines) and other methods in violation of national regulations, using fictitious transactions, fictitious prices, and cash returns Pay cash directly to credit card holders. In China UnionPay's "UnionPay Card Acquirer Merchant Risk Management Rules", the current behavior is defined as: the merchant colludes with a bad cardholder or other third party, or the merchant himself withdraws cash through a virtual transaction.

Cash out

Cash out, short for cash withdrawal, generally refers to obtaining cash benefits in exchange for illegal or false means. Mostly used for credit card cash, provident fund cash, securities cash, etc. According to the Interpretations of Several Issues Concerning the Specific Application of Laws in Criminal Cases That Hinder Credit Card Management, cashing refers to the use of point-of-sale terminal equipment (in violation of national regulations) (

There are many types of cash based on the products used. Common stock market cash, real estate cash and

The central bank's Shanghai headquarters said on July 26, 2010 that credit card cashing is illegal and the central bank is studying

Credit Card Cases by Category

One is

What is the difference between cashing out and taking over at the bank counter or ATM?

Cash withdrawal refers to cash withdrawal at bank counters or ATMs. Generally, interbank transactions require a bank fee of 3%. In addition, the bank has to pay five-ten-thousands of interest per day. The cash withdrawal limit is generally only 30% -50% of the credit card overdraft limit. So this is very restrictive for those who are in urgent need of funds.

Cashing out is a kind of consumption, but after swiping a card, you do nt take the goods, but the merchant gives you the same amount of cash. There is no interest-free time for cashing out, which usually ranges from 20-56 days, and can be full or doubled. Cash out.

First, credit card cashing has increased the destabilizing factors in China's financial order. China has a strict access system for financial institutions, and has a series of strict regulations for monitoring the inflow and outflow of financial institutions' funds. Those criminals united merchants to swipe credit cards through virtual POS machines to conduct unreal transactions, engage in credit card cashing operations in disguise, but were outside the framework of the law, violating national laws and regulations on financial business franchising, and deviating from the People's Bank of China's The relevant management regulations may also provide convenient conditions for illegal activities such as "money laundering", which undoubtedly has laid a destabilizing factor in China's overall financial order. In addition, the increase of bank risks and the formation of a large number of non-performing loans will also damage the integrity environment of the society and hinder the healthy development of the credit card industry.

Secondly, the damage to the card issuing bank is huge. Most credit cards are unsecured lending instruments. As long as the cardholder makes a purchase, the bank must bear a repayment risk. Therefore, under normal circumstances, banks use high amounts of overdraft interest or cash withdrawal fees to prevent overdraft risks. However, the behavior of credit card cashing just circumvents the high cash withdrawal fees set by the banks and crosses the bank's precautionary threshold. In particular, some loan intermediaries help cardholders to forge identity materials and continuously increase credit card limits. The normal business of banks has been greatly disrupted, and it has also brought huge risks. Due to the large amount of cash, cardholders are tantamount to obtaining a personal loan without interest and no guarantee. The card-issuing bank is unable to learn about the use of these funds, and it is difficult to effectively identify and track them. The credit risk pattern of credit cards has actually evolved into investment or speculative credit risk. Once the cardholder is unable to repay the cash amount, the bank loses not only the interest on the loan, but also a large amount of assets.

Finally, for cardholders individually, the current behavior of credit card sleeves also brings great risks to themselves. On the surface, cardholders get cash by cashing out, reducing interest expenses, but in essence, cardholders need to repay after all. If cardholders cannot repay on time, they must bear higher interest than overdrafts. Interest on overdue repayments may cause a bad credit history. It will be very difficult to borrow funds from banks in the future, and even bear the legal risk of lack of personal credit. ^[3]