Our bank performs cash advances on customers credit cards for a small fee. Should we also be extedning this courtesy to NON-customers as well? Are we required to do so? We use Elan' as our cash advance machine. The question arose when a NON-customer with an out-of-state license wanted to do a cash advance for $6000.00.

I'm not aware of any regulatory issues. All previous banks that I have worked with had this service for customers and non customers alike, however we did not charge a fee. There was a daily limit of $5000 for non-customers and ID had to match the card name.

You need to look at your contract with VISA/MC that you entered into when you began processing cash advances - Everyone of them that I have seen require you to process cash advances for any consumer holding their (VISA/MC) logoed card and further, they have always forbid the FI from charging a fee for process the cash advance. There is generally a maximum cash advance amount that you must process to (ours is also $5k) but you can certainly process higher amounts.
I would recommend either finding your contract, or contacting your processing rep.

Thank you both for the advice and the info.

I found our bank's contract and found that A)our bank cannot charge a service fee to non-customers or customers B) The daily credit advance for customers is up to $5000.00. C) We MUST process cash advances for non-customers and D) We (the bank) have the right to set a daily limit for non-customers.

Interesting stuff!