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#949161 - 04/24/08 09:29 PM Visa Cash Advance for Noncustomer
Dolly Nugent Offline
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Dolly Nugent
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Posts: 1,820
Southern California
If I recall correctly, a bank that issues Visa debit cards is required as part of their contract with Visa, to offer cash advance services to non-customers. Am I correct?
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eBanking / Technology
#949174 - 04/24/08 09:56 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
John Burnett Offline
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John Burnett
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Posts: 38,659
Cape Cod
Correct.
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#1501204 - 01/27/11 05:42 PM Re: Visa Cash Advance for Noncustomer [Re: John Burnett]
beegee Offline
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Joined: Feb 2004
Posts: 1,087
South
We are having non-customers come in with Mastercard payroll cards wanting cash advances off of them. My understanding is that we cannot refuse them.

Is this thread from 2008 still accurate?

Also - can we put any dollar limitations on these advances?

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#1501299 - 01/27/11 06:56 PM Re: Visa Cash Advance for Noncustomer [Re: beegee]
LSmith Offline
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LSmith
Joined: Dec 2002
Posts: 703
That is correct. The Visa/Mastercard rules specifically mandate that.

Reminder—Face-to-Face Cash
Disbursement Transaction Standards
Craig Roberts, Business Leader, Franchise Development, Rules, Standards, and Strategy
Suggested routing: Compliance Contact, Principal Contact
Applies To: �� Issuers �� Acquirers �� Processors
Summary: MasterCard reminds members about the Standards relating
to processing face-to-face cash disbursement transactions
and strongly advises members to review their procedures
for compliance with these Standards.
Action
Indicator: A Attention warranted
Effective Date: Effective immediately
Overview
MasterCard has become aware that some MasterCard members have
established non-compliant practices, either at their own facilities or at their
agent’s financial institution, regarding the processing of face-to-face cash
disbursements. These non-compliant procedures have been discovered
recently specifically related to payroll and government benefit payment
cards when cardholders seek to withdraw all their cash from their cards at
a teller window (sometimes termed a “cash out”).
Charging fees, refusing to disburse cash to non-customers, setting lower
maximum transaction amounts for non-customers, refusing to allow a
cardholder to withdraw all the cash available on their card, or requiring
non-customers to provide additional personal identification or information
are all examples of such practices. MasterCard members and their
authorized agents must provide cash disbursement services to all
MasterCard cardholders on the same terms regardless of the card issuer,
and without any discount or service fee.
Reminder—Face-to-Face Cash Disbursement Transaction Standards
Global Operations Bulletin No. 4, 1 April 2009
©2009 MasterCard 27
Member Requirements
This article reminds members about the Standards relating to processing
face-to-face cash disbursement transactions and attempts to answer some
of the most frequently asked questions that members have inquired about
regarding face-to-face cash disbursement requirements. MasterCard strongly
recommends that members review internal procedures to ensure
compliance with these Standards.
This article does not change any Standards and, in the event of a
discrepancy between any Standard and this article, the Standards will
exclusively apply. MasterCard will continue to exercise its sole authority to
interpret all of the Standards, including cash disbursement rules.

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#1501306 - 01/27/11 07:01 PM Re: Visa Cash Advance for Noncustomer [Re: LSmith]
A_G Offline
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Posts: 18,956
or requiring
non-customers to provide additional personal identification or information
are all examples of such practices.


Anyone know what this means?

confused
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#1501617 - 01/28/11 02:20 AM Re: Visa Cash Advance for Noncustomer [Re: A_G]
BrianC Online
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BrianC
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Posts: 5,532
Illinois
If you ask a bank customer for a driver's license to perform a cash advance, you can't turn around and ask a non-customer for a driver's license AND a birth certificate. You must treat them the same.
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#1665070 - 02/14/12 06:57 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
Bsa812 Offline
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Joined: Mar 2009
Posts: 4
Does anyone know if this applies to tax refund cards (mastercard) that are not embossed with a customer name? I would like to know what my safe guards are if we are required to do this.

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#1665153 - 02/14/12 08:28 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
BrianC Online
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BrianC
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Posts: 5,532
Illinois
MasterCard has the same non-discrimination mandate.

Rule 8.9.1 Nondiscrimination

Subject to compliance with the Standards, each Customer within the U.S. Region must provide cash disbursement services to all Cardholders at all of the Customer's officers where teller services are provided.


Your safeguards come from complying with MasterCard's card acceptance procedures found in Rule 8.3

The highlights are:

1.Compare first four digits of card number with the four digits prinited below the embossing.
2. Make sure the card is signed.
3. Request unexpired, photo, government issued identification and make sure that the signature on the ID matches the signature on the card.
4. Obtain a valid authorization for the amount of the advance request.
5. Have the cardholder sign the receipt. Retain a copy and provide a copy to the cardholder.

As long as your procedures are followed, all you have to do is provide a copy of the signed receipt to refute any fraud related chargebacks. (Think about how many chargebacks you lose because the merchant has a signed sales receipt. In the case of a cash advance, the bank is acting as the merchant.)
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#1750873 - 10/19/12 07:01 PM Re: Visa Cash Advance for Noncustomer [Re: BrianC]
becpet Offline
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Joined: Oct 2012
Posts: 1
Arkansas
If we determine that the signature on the back of a non-embossed card does not match the signature on the presented ID, what can we do then? Can we refuse to do the cash advance? If not, what should we do?

Also, what if it is an embossed card but the name embossed on the card does not match the ID presented? Do we have the right to refuse the transaction?

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#1750883 - 10/19/12 07:23 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
BrianC Online
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BrianC
Joined: Nov 2004
Posts: 5,532
Illinois
In both instances the bank would lose a Compliance Case if the transaction were determined to be fraudulent and the bank did not follow VISA's cash disbursement procedures.

Deny the transaction in both cases.
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#1801526 - 04/04/13 05:06 PM Re: Visa Cash Advance for Noncustomer [Re: BrianC]
low profile Offline
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low profile
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Posts: 243
Pennsylvania
We have signed an agreement to issue Visa debit cards and it is my understanding we must service non-customer MC/Visa cash advance requests. Are we permitted to charge a fee for this service?
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#1801558 - 04/04/13 06:11 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
Skittles Online
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TN
No. Charging for cash advances is not permitted.
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#1897215 - 02/14/14 01:31 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
cheech Offline
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Joined: Jun 2010
Posts: 207
Chatsworh PA
Can the banks set a limit for both non-customer and customer cash advances? Such as $5,000 per person per day?

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#1899358 - 02/24/14 05:50 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
2Confused2go on Offline
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Posts: 148
Texas
Can the banks set a limit for both non-customer and customer cash advances? Such as $5,000 per person per day?
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#1899414 - 02/24/14 07:19 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
RockChucker, CAMS Offline
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Posts: 1,474
The Country
If you do set a limit it has to be the same for both customers and non-customers
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#1900411 - 02/26/14 10:27 PM Re: Visa Cash Advance for Noncustomer [Re: low profile]
SSBStephanie Offline
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Joined: Apr 2010
Posts: 31
Iowa
Also, if you are only under the Visa agreement (you don't have any Mastercard relationships) you are only required to do cash advances for Visa.

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#1900501 - 02/27/14 01:37 PM Re: Visa Cash Advance for Noncustomer [Re: SSBStephanie]
Elwood P. Dowd Offline
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If your bank is not a party to a contract with MasterCard then you do not have to abide by the terms of their contract with other banks.
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#1908921 - 03/26/14 08:23 PM Re: Visa Cash Advance for Noncustomer [Re: Skittles]
carad Offline
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Joined: Oct 2013
Posts: 13
WI
Originally Posted By: Skittles
No. Charging for cash advances is not permitted.


I thought that charging for cash advances was only prohibited in certain states. Is that correct?

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#1908981 - 03/26/14 11:41 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
Derwood Offline
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Posts: 179
carad - That is not correct. The prohibition on charging fees for completing a cash advance is part of the operating rules for both Visa & Mastercard. They are the ones who do not permit it.
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#1909450 - 03/27/14 08:13 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
carad Offline
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Joined: Oct 2013
Posts: 13
WI
Okay thank you

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#1916078 - 04/21/14 12:11 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
cheech Offline
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Joined: Jun 2010
Posts: 207
Chatsworh PA
If we only have a VISA contract can we charge for MasterCard, Discover and American Express? Can we refuse the same if we cannot charge?

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#1916079 - 04/21/14 12:22 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
rlcarey Online
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Posts: 74,188
Galveston, TX
If you don't have a merchant contract for those branded cards, how can you even accept them???
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#1916083 - 04/21/14 12:34 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
cheech Offline
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Joined: Jun 2010
Posts: 207
Chatsworh PA
We have only been able to find the Visa contract. It may be in with the machine contract, we are not sure.

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#1919367 - 05/01/14 05:05 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
SmallBank2 Offline
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SmallBank2
Joined: Feb 2014
Posts: 32
We issue Visa debit cards through a third party vendor. CO says this does not apply to our bank - is that accurate?

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#1919379 - 05/01/14 05:21 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
Kathleen O. Blanchard Offline

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Posts: 21,277
Check your vendor agreement. It should say that the bank will comply with all Visa operating rules. This topic is covered in the operating rules.
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