1. What is the principle of POS cashing?
POS cashing means that the credit card holder does not go through formal channels such as bank counters or bank automatic teller machines (ATM machines). To withdraw cash, it is to convert the credit limit of the credit card into cash in a disguised way in the form of “virtual credit card consumption” through fictitious transactions, fake prices, cash returns, etc. .
According to the relevant regulations of my country’s financial system, the vast majority of credit cards overdraft cash at bank counters or ATM machines are not only small in amount but also costly. Under normal circumstances, only 30% of the credit line can be withdrawn (the maximum amount is only 50% of the credit line), and a handling fee of 1% to 3% of the transaction amount and an interest of 5/10,000 per day must be paid. However, if swiping the card through the POS machine, the cardholder not only does not need to pay the handling fee, but also has an interest-free period of about 50 days. credit card spending rebates. Because of this difference in settlement, special merchants only need to charge cardholders with cash-out needs a higher percentage of handling fees than consumption rebates. You can use the POS machine to make a fake card transaction to earn the difference.
Second, is it illegal to cash out via POS machines?
It is illegal to cash out via POS machines. Responsibility, will only take measures such as stopping payments, freezing accounts, and reducing credit card limits. If you cash out a large amount and cause losses to the bank, the bank will take you to court. The Interpretation of Several Issues Concerning the Specific Application of Law in Criminal Cases of Obstructing Credit Card Management issued by the Supreme People’s Procuratorate stipulates that those who use point-of-sale terminals (POS machines) to cash out, if the circumstances are serious, will be convicted and sentenced for the crime of illegal business operations.
On December 16, 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 the Prevention of Criminal Cases of Credit Card Administration, in which Article 7 stipulates that, in violation of state regulations, the use of Consumer terminal equipment and other methods are used to pay cash directly to credit card holders by means of fictitious transactions, false prices, and cash returns.
Three, which behaviors will be considered as cash out
1. Swipe the card with a code-hopping POS machine and jump to a public welfare merchant, the card issuing bank will not earn any money When it arrives, it will eventually lead to derating and card closure.
2. Cash out in large amounts, often maxing out credit cards at one time.
3. Cards are often swiped during non-normal business hours. Generally speaking, normal business hours are 9:00-22:00.
4. Frequently swipe the card in large amounts at the same merchant.
In fact, if the bank determines that you have cheated, or suspects that you have cheated, the action taken against you is to reduce the amount or close the card on the premise of not harming the interests of the bank. Major financial losses will be dealt with by corresponding laws and regulations.
