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#1688173 - 04/12/12 01:10 PM VISA/MC Cash Advance
Anonymous
Unregistered

Are banks required to provide cash advance services? We are looking into stopping our cash advance service for all customers and non-customers due to some operational issues. I know we can't charge a fee to do one but wasn't sure if we are required to provide the service.

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#1688338 - 04/12/12 05:17 PM Re: VISA/MC Cash Advance Anonymous
Compli(cated) Offline
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Posts: 185
Wisconsin
Agreements with credit card companies (Visa, Mastercard) require financials to provide these services. So if you have an agreement with a credit card company, you are most likely required to do cash advances for customers and non-customers.
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#1688520 - 04/13/12 11:35 AM Re: VISA/MC Cash Advance Anonymous
gacompliancegirl Offline
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hanging on by a thread
I tried to get us out of the cash advance business recently. Unfortunately, our agreement with VISA to provide branded debit cards requires that we offer cash advance services. Our account representative told us all of their agreements require that.
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#1754236 - 11/01/12 04:39 PM Re: VISA/MC Cash Advance Anonymous
SMQ, CRCM Offline
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Between the lines
So if I have MasterCard debit cards, I can refuse to do VISA advances but not MC advances?
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#1896334 - 02/12/14 04:16 PM Re: VISA/MC Cash Advance SMQ, CRCM
Diana Timberlake Offline
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Diana Timberlake
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Posts: 118
I know this is an old post, but we are dealing with the same question. If we offer Visa and our agreement is with Visa, are we required to do cash advances on Mastercards. I am being told the H & R Block refund cards are Mastercards and we offer Visa. It is noncustomers who are coming in with MC wanted CA for $5,000 +. Can we refuse?

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#1896336 - 02/12/14 04:17 PM Re: VISA/MC Cash Advance Anonymous
rlcarey Offline
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Galveston, TX
If you don't have a merchant agreement with and don't take Mastercards, you don't take Mastercards.
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#1896339 - 02/12/14 04:19 PM Re: VISA/MC Cash Advance Anonymous
John Burnett Offline
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Cape Cod
No, No, a thousand times no. Even though you issue only Visa cards, the fact that you are able to do MC cash advances means you have a contract with MC through your service provider or you have agreed to abide by MC cash advance rules.

MC does not allow you to discriminate against non customers in providing cash advances. You can't refuse (although there are some provisions allowing you to limit the dollar amount you'll advance if you can't handle the cash volume), and you can't charge a fee.
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#1896839 - 02/13/14 04:24 PM Re: VISA/MC Cash Advance Anonymous
Anonymous
Unregistered

There's always the good ol' "Sorry, our machine is out of order" routine.

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#1897023 - 02/13/14 07:46 PM Re: VISA/MC Cash Advance Anonymous
Skittles Online
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Skittles
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TN
I hope you're joking.
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#1897079 - 02/13/14 08:55 PM Re: VISA/MC Cash Advance Anonymous
Anonymous
Unregistered

Why? Who cares what Visa, MC, Walmart, Target want?

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#1897086 - 02/13/14 09:00 PM Re: VISA/MC Cash Advance Anonymous
manimal Offline
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manimal
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Deleted
I think management will care when VISA/MC/etc. cancels your FI's contract and you no longer can offer branded cards.
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#1897093 - 02/13/14 09:04 PM Re: VISA/MC Cash Advance Anonymous
rlcarey Offline
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Galveston, TX
I would not be wasting any time on responding to such posts by an ignoramus ----err, I mean an anonymous poster. smile
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#1897103 - 02/13/14 09:16 PM Re: VISA/MC Cash Advance Anonymous
Anonymous
Unregistered

I'll admit to being ignorant (thus, an ignoramus) of any measurable risk that Visa or MC is going to both a) detect such a practice and b) yank a contract as a result.

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#1897109 - 02/13/14 09:18 PM Re: VISA/MC Cash Advance Anonymous
manimal Offline
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manimal
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Deleted
Yes, Lord forbid you offer actual banking services to members of your bank's community, whether contractually bound or not. crazy

Hopefully a mod will lock this thread since the original question was asked and answered.
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#1897113 - 02/13/14 09:21 PM Re: VISA/MC Cash Advance Anonymous
rlcarey Offline
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rlcarey
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Galveston, TX
And such is the state of the world in which contractual obligations can be ignored at will for individual purpose or gain. And we wonder why the banking world is so highly regulated.
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#1897440 - 02/14/14 05:25 PM Re: VISA/MC Cash Advance Anonymous
Anonymous
Unregistered

I think an argument could be made though that:

We have a "Cash Advance" system at our bank. For our customers, we probably process ONE (or less) per month. On the flip side, we are located in a very suburban area and process 30-40 per month for NON-customers. We've tried the old tactic of "you should open an account here" but truth be told, 90% wouldn't qualify for an account. We've tried the "have you used our ATM for a cash advance" but they either don't want to pay the fee, or don't have a PIN number.

The end result is we as tellers are taken away from helping our customers when helping these non-customers. And anyone that has processed a cash advance knows it's not just a 2 minute transaction.

It sucks. We HATE it. I'd love to get rid of the Cash Advance machine altogether. But it's the price of doing business. So we smile and grumble and advance.

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#1898101 - 02/19/14 02:54 PM Re: VISA/MC Cash Advance Anonymous
HallieK Offline
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HallieK
Joined: Jul 2001
Posts: 369
Oklahoma
Since H&R Block cards where mentioned, we have refused to complete a cash advance for both customers and non-customers, as there is no way to identify who is the owner of the card. The card is simply made out to H & R Client. I feel that we do not have a problem refusing to provide cash advances on these cards since there is no possible way to know who the card was issued to. Does anyone see a problem with this practice?

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#1898104 - 02/19/14 03:01 PM Re: VISA/MC Cash Advance Anonymous
Skittles Online
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Skittles
Joined: Sep 2002
Posts: 13,964
TN
Unfortunately you are incorrect. You must treat these cards as you do any other. I'm sure Brian or someone will add to this with further details.
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#1898106 - 02/19/14 03:06 PM Re: VISA/MC Cash Advance Anonymous
edAudit Offline
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edAudit
Joined: Jul 2008
Posts: 4,783
You are here
http://www.hrblock.com/financial-services/emerald-card-services/

Save Money and Avoid Fees

Make purchases, pay bills114 and get cash at ATMs.117 No setup fee, no monthly activity fee, no overdraft fee, no fees on purchases, or customer service calls. Keep more of your hard-earned money to use on whatever you want.

There seems to be some issues with their website as well after clicking on avoid fees they list fees including to add money at a bank but it does not specify which bank.

If you can not determine who the card is payable to send them back to block to get a card in their name. You can always tell them to review their fees on the card for a cash advance over the counter(@ 25.00 for a cash advance that will stop most).
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#1898108 - 02/19/14 03:07 PM Re: VISA/MC Cash Advance Skittles
edAudit Offline
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edAudit
Joined: Jul 2008
Posts: 4,783
You are here
Originally Posted By: Skittles
Unfortunately you are incorrect. You must treat these cards as you do any other. I'm sure Brian or someone will add to this with further details.


How can you process a cash advance with no name on the card?

I do not have much experience with this but we were always instructed to get ID for cash advances.
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Opinions can be considered as coming from anywhere but my employer.

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#1898110 - 02/19/14 03:10 PM Re: VISA/MC Cash Advance Skittles
ACBbank Offline
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ACBbank
Joined: Jul 2006
Posts: 4,236
New York City
Originally Posted By: Skittles
Unfortunately you are incorrect. You must treat these cards as you do any other. I'm sure Brian or someone will add to this with further details.


I'm hardly a Visa/MC expert, but it seems very risky to approve a large cash advance if I cannot link the card to the individual standing at the teller line.

If I'm mistaken, can someone please point out where I should be looking?
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#1898112 - 02/19/14 03:12 PM Re: VISA/MC Cash Advance Anonymous
edAudit Offline
Power Poster
edAudit
Joined: Jul 2008
Posts: 4,783
You are here
If this is the same item.

For Merchants

http://www.mastercard.com/ca/merchant/en/solutions/unembossed.html


How Does it Work?

You should not process any MasterCard Unembossed transactions if you do not have an electronic terminal, or if it is out of use. If you accept a MasterCard Unembossed transaction and you do not have an electronic terminal, or it is out of use; you may carry additional liability. MasterCard Unembossed cards include an “ELECTRONIC USE ONLY” legend on the card front to inform consumers that merchants will be processing their transactions using their electronic terminals.
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Opinions can be considered as coming from anywhere but my employer.

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#1898114 - 02/19/14 03:14 PM Re: VISA/MC Cash Advance Anonymous
edAudit Offline
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edAudit
Joined: Jul 2008
Posts: 4,783
You are here
ww.visa.ca/merchant/products-and-services/prepaid-cards/prepaid-faq.jsp

Where can unembossed Visa Prepaid cards be used?

They may be used at any Visa merchant location worldwide that has an electronic terminal. Where no online-capable electronic terminal exists, or where an online authorization is not available (e.g., parking lot, movie kiosk), use of the Visa Prepaid card is not possible. If a merchant without an electronic terminal manually key-enters the transaction, the merchant runs the risk of receiving a "Missing Imprint" or "Card Not Present" chargeback.
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Opinions can be considered as coming from anywhere but my employer.

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#1898122 - 02/19/14 03:33 PM Re: VISA/MC Cash Advance edAudit
Skittles Online
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Skittles
Joined: Sep 2002
Posts: 13,964
TN
Click Here

See this thread from last year.
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#1898128 - 02/19/14 03:46 PM Re: VISA/MC Cash Advance Anonymous
ACBbank Offline
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ACBbank
Joined: Jul 2006
Posts: 4,236
New York City
Thank for posting the link Skittles. If I understand this correctly, a non-customer comes in for a cash advance, as an FI that is offering MC branded debit cards, we must provide the cash advance, but can require the non-customer to provide a photo ID?
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"100 victories in 100 battles isnt the most skillful. Subduing the other's military w/o battle is the most skillful." Sun-Tzu

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