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#1953208 - 08/14/14 07:54 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
Lele Offline
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Lele
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Posts: 817
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Good information. The question I have is do we have to do cash advances at all? What if we just don't offer this service?
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#1953259 - 08/14/14 08:51 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
manimal Offline
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manimal
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See the very first few posts... if you offer a branded card you must offer cash advance services.
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#1953985 - 08/18/14 03:09 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
Milby Offline
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Posts: 953
Tejas
True, but you can set a limit. The limit has to be applied equally to everyone (customer and non-customer). Put your limit at $1 and no one will ask for you to complete one.

But... if your people follow procedures, there is little/no risk to doing a cash advance. I wouldn't put much effort into this when it is not likely a common occurrence. I would imagine that most branches do less than one per month.

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#1953989 - 08/18/14 03:10 PM Re: Visa Cash Advance for Noncustomer [Re: Milby]
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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Originally Posted By: milby
True, but you can set a limit. The limit has to be applied equally to everyone (customer and non-customer). Put your limit at $1 and no one will ask for you to complete one.


Do you really feel that is complying with operating rules in good faith?
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#1953992 - 08/18/14 03:16 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
Milby Offline
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Posts: 953
Tejas
Does Visa or Mastercard have a rule regarding limits? Let's see it if they do. As far as I recall, I have the ability to set a limit for cash advances. If they don't like it, they should have set a minimum for limits I can impose. If they ever do so, I address it then.

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#1953996 - 08/18/14 03:17 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
Milby Offline
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Tejas
And what do you feel is in good faith? $5,000? $1,000? $500? In good faith, I don't want my customers to pay predatory fees for cash advances. $1 seems reasonable in that regard.

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#1954009 - 08/18/14 03:32 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
BrianC Online
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Joined: Nov 2004
Posts: 5,595
Illinois
From MasterCard Cash Advanced Processing Rules

Maximum Cash Disbursement Amounts
A Customer and each of its authorized cash disbursement agents may limit the amount of cash provided to any one Cardholder in one day at any individual office. Such limit may not be less than USD 5,000 per Cardholder in one day and uniformly must be applied to all Cardholders.
If compliance with this Rule would cause hardship to one or more (but not all) of such individual offices that are required or permitted to provide cash disbursement services, the Customer may establish a maximum cash disbursement amount of less than USD 5,000 per person in one day at each such office, provided that the maximum cash disbursement amount:
1. Is not less than USD 1,000;
2. Is not less than the maximum cash disbursement amount established for any other acceptance brand at the office; and
3. Applies only at those offices where the Customer can, if requested by MasterCard, demonstrate that a higher maximum would create a hardship.

Similarly, the limit you can impose on a VISA card would also be $5,000. Both card brands prohibit surcharges on cash advances.
As far as "dealing with VISA/MC" should they come to call, compliance violation fines start around $15,000 per violation or $1,000 per occurrence. Consider the risks of willfully violating your contract with VISA/MC before you take that step.
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#1955408 - 08/20/14 07:35 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
BetsyS Offline
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Joined: Jun 2009
Posts: 468
From Visa's Operating Rules:

Maximum Manual Cash Disbursement Amount
An Acquirer may establish a maximum Manual Cash Disbursement amount of not less than US $5,000 or local currency equivalent, per day, per Cardholder.

Issuer Minimum Manual Cash Disbursement Amount - U.S. Region
A U.S. Issuer must not establish a minimum Manual Cash Disbursement amount.

Acquirer Minimum Manual Cash Disbursement Amount - U.S. Region
A U.S. Acquirer must not establish a minimum Manual Cash Disbursement amount.
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#2183700 - 06/29/18 05:27 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
Kompliance Offline
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Joined: Aug 2012
Posts: 44
Pennsylvania
I'm going to wake this thread back up smile

We have always followed the VISA rules to provide cash advances to customers and non-customers alike, however, recently we have come across a situation that seems to be out of the ordinary.

A former customer had his deposit account charged off to Chexsystems because of overdrafts that he never repaid. But he still comes in every month to obtain a cash advance on his government benefits card. Are we allowed to refuse this transaction until he repays us his charged off debt? My gut feeling says no, but it seems ridiculous that we can refuse virtually any other bank product service for unpaid debt, but not this?

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#2183731 - 06/29/18 06:52 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
BrianC Online
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BrianC
Joined: Nov 2004
Posts: 5,595
Illinois
Your gut feeling is correct. You violate your contract with VISA if you refuse service. Also, since your deposit contract terminates when you charge off the account, (and these are government benefit) you have no setoff rights to grab the funds from the advances.
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#2183774 - 06/29/18 09:46 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
Andy_Z Offline
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On the Net
I think of it this way, the Visa agreement is separate and imposes certain requirements the bank agreed to. It has nothing to do with the charged off DDA. While you do not have the ability to setoff these funds or refuse services, 1) at least you're making something off the customer in fee income, and 2) when the person is there, you could have a banker speak with them about their account. I would do that away from the teller line. You might just be able to work out some arrangements assuming the account is still collectible.
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#2183828 - 07/02/18 05:36 PM Re: Visa Cash Advance for Noncustomer [Re: Dolly Nugent]
Kompliance Offline
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Joined: Aug 2012
Posts: 44
Pennsylvania
Thank you for the responses! At least I feel now that I have an easily explainable answer for the front line staff dealing with this former/non-customer.

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