Traditional Culture Encyclopedia - Travel guide - I went out to travel and stay in a hotel, swiped my credit card, and after checking out, the waiter called and said there was a mistake.
I went out to travel and stay in a hotel, swiped my credit card, and after checking out, the waiter called and said there was a mistake.
Credit card cashing means that the cardholder swipes the amount within the credit limit of the credit card by cashing out the company or other institutions, and then the cardholder immediately gives the cardholder cash. Generally, there is a certain handling fee for cashing out.
Banks are strictly forbidden to cash out credit cards. Once discovered by the bank, it may lead to the freezing of credit cards and even affect personal credit records.
Risks of cashing out:
1, credit card cashing has increased the unstable factors in the financial order. Financial institutions have a strict access system and a series of strict regulations to monitor the inflow and outflow of funds from financial institutions. Criminals and merchants use virtual POS machines to swipe their cards for consumption and engage in cash withdrawal by credit cards in disguised form, which violates the laws and regulations of the state on financial business franchising, deviates from the relevant provisions of the People's Bank of China on cash management, and may also provide convenient conditions for illegal activities such as "money laundering", which undoubtedly lays an unstable factor for the overall financial order. In addition, the increase of bank risks and the formation of a large number of non-performing loans will also destroy the social credit environment and hinder the healthy development of the credit card industry.
2. The harm of illegal cash withdrawal to the issuing bank is enormous. Most credit cards are unsecured lending instruments. As long as the cardholder makes a consumption, the bank will bear the repayment risk. Therefore, in general, banks guard against overdraft risk through high overdraft interest or cash withdrawal fees. The act of cashing in credit cards just circumvents the high cash withdrawal fee set by banks and crosses the bank's prevention threshold. Because of holding a large amount of cash, the cardholder is tantamount to obtaining an interest-free and unsecured personal loan. However, the issuing bank cannot know the purpose of these funds, and it is difficult to identify and track them effectively. In fact, the credit risk of credit card has evolved into the credit risk of investment or speculation. Once the cardholder can't repay the cash amount, the bank loses not only the loan interest, but also a lot of assets.
3. For the cardholder personally, the credit card cashing behavior also brings great risks to himself. On the surface, cardholders get cash by cashing out, which reduces interest expenses, but in essence, cardholders need to repay after all. If the cardholder can't repay the loan on time, he must bear the overdue repayment interest higher than the overdraft interest, which may cause a bad credit record. It will be very difficult to borrow money from the bank in the future, and even bear the legal risk of personal credit loss.
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