Investigation on the disorder of cash out of credit card: hidden high service charge and credit risk

category:Finance
 Investigation on the disorder of cash out of credit card: hidden high service charge and credit risk


At the same time, since this year, the China Banking and Insurance Regulatory Commission and a number of banks have stepped forward to standardize the management of credit card business, emphasizing the standardization of credit card use.

Risks behind credit card cash out

The reporter entered the keyword credit card cash out in Baidu search column, and the search terms reached 28.7 million. In addition to some cases of credit card cash out, most of them were the recommendation of credit card cash out software and the strategy and method of cash out.

The so-called cash out means that the cardholder uses the credit card to swipe the card on the merchants POS machine with false transaction behavior, and obtains the returned cash from the merchant after paying a certain fee.

Securities Daily reporter contacted a credit card arbitrage intermediary company, according to the other partys introduction, the holder through the payment of business fees to cash. Normal is to use the merchants POS machine for false transactions, the amount on the credit card will be deducted, the business will deduct the balance after the handling fee, pay the holder cash on the spot, generally charge 1.5% - 3% as the handling fee, take 500000 yuan as an example, the highest need is 15000 yuan.

The reporter learned that under normal circumstances, credit card holders can withdraw cash, but the amount of cash withdrawal is generally limited, and it is also necessary to pay a certain proportion of the cash withdrawal fee, and pay a certain amount of interest every day. However, illegal cash out in the form of false consumption and trading can greatly exceed the normal cash withdrawal amount, which also makes some people smell business opportunities.

As a matter of fact, although it is convenient for individuals to cash out by credit card, it is not necessarily cheap, and cash out may also affect personal credit reporting. Therefore, the risk behind illegal cash out of credit card can not be ignored.

Assuming that the cardholder wants to cash in 300000 yuan, the handling charge of 2% will be 6000 yuan. However, if the bank uses the method of keeping the card with the card for 30 days to cash out 300000 yuan for one year, it will need to implement 11 times of repayment and re cash out. Then, only one credit card needs to pay 11 service charges, which is about 66000 yuan, equivalent to 22% of the cash out amount.

People in the banking industry said that in fact, the arbitrage behavior is not only a risk point for banks, but also may have adverse effects on individuals. The banking system will monitor the card data, and will verify the abnormal situation. Once it is confirmed that it is a cash out behavior, measures will be taken. Therefore, for cardholders, even if they can ensure timely and full repayment after cash out, the bank will also reduce the amount or stop the card and incorporate it into the personal credit reporting system of the peoples Bank of China.

Strengthen supervision and Implementation

According to the central bank report, by the end of June this year, the overdue amount of credit cards of major banks in China reached 78.233 billion yuan. By the end of September, the total amount of interest and liquidated damages for overdue amounts had exceeded 92 billion yuan.

Recently, the China Banking and Insurance Regulatory Commission and a number of banks have stepped forward to standardize the management of credit card business. Securities Daily reporter noted that in addition to emphasizing the use of credit cards, the bank credit card center is also strictly investigating illegal transactions such as cash out.

A number of bank credit card centers have issued the announcement on further clarifying the use of credit card funds, which makes it clear that personal credit cards and credit card funds are limited to cardholders daily real consumption. Credit card funds can not be used in production and operation, fixed assets investment, equity investment, cash arbitrage, debt repayment and other non consumption fields, including house purchase, securities investment, financial management, other equity investment and other prohibited fields. If the credit card funds are used in non consumption areas or there are non authentic transactions, the transaction may fail. One or more risk management measures including but not limited to reduction, stop payment, freezing, early settlement, deduction / request for return of equity and value-added services will be taken.

In addition, banks began to use card sealing, reducing the amount and other means to strictly control the risk. Recently, some credit card holders told reporters Tucao make complaints about the banks recent notice of lowering the amount, including banks and state-owned banks.

At the same time, in recent years, the CBRC has also strengthened the supervision of credit card business. In June this year, the China Banking and Insurance Regulatory Commission (CIRC) issued the notice on looking back to rectify the chaos in the banking and insurance market. The notice warned that the bank credit card business funds were not well controlled and were flowing into non consumer areas in violation of regulations.