t card repayment, which also leaves an opportunity for the intermediary providing

POS cash to repay credit card. "China business daily (blog, microblog)" reporter
survey found that, while the demand for credit card installment increased, the
intermediary providing POS cash to repay credit card began to appear frequently.

The Bank Research Manager of a state-owned Bank Credit Card Center pointed out
that, from the transaction appearance, it is the consumption behavior of the
cardholder in a certain merchant, but in fact, there are many risks in this kind of
cash out behavior, such as the fake merchant does not send the money to the cash
out cardholder after receiving the bill, and the cardholder is blacklisted by the
bank for the cashout behavior, which affects the credit investigation, etc.

It is worth noting that the rise in the overdue rate of credit cards has also
attracted the attention of the bank's top management. According to the annual
report data disclosed by banks, the non-performing loan rate of credit card of many
banks has increased, which also brings challenges to the management ability of
credit card after loan.

Arbitrage loan mode

The increase of overdue rate of credit card brings business "opportunity" for POS
cash out intermediary. The reporter investigates and discovers, the intermediary
that offers POS machine to cash out to return credit card is increasing day by day
recently.

A POS intermediary told reporters that he can use his POS machine to cash out and
return the credit card. According to the introduction, there are two main
advantages: one is not to use your own money to return the credit card; the other
is not only to save the installment fee, only to pay the cash out service charge,
but also to avoid the trouble of reducing the amount. If you handle the
installment, you may face the credit card reduction.

According to the relevant responsible person of credit card of Guangfa bank, this
kind of card use behavior of credit card holders is called cash out loan. After the
customer issues the bill, he uses the reserved amount to cycle cash out and repay,
so that the customer's current bill is fully repaid and the repayment period is
postponed to the next bill.

The reporter noted that in recent years, POS machine cash out has been prohibited
repeatedly. Talking about this phenomenon, the Bank Research Manager of the credit
card center of a state-owned bank has analyzed to the reporter that POS cash out is
actually a kind of behavior that fake merchants cash out credit card funds, and
uses MCC codes with lower rates to reduce transaction costs and achieve low-cost
access to bank funds.