Are there new rules for credit cards that we need to implement a $350 limit on currency we can accept as payment in a 30 day period? A chain store also says they can not accept gift certificates for payment on their card. All the other company's notice says is that they are required by the Federal Government to implement these changes. I called their recorded message and they said it was due to the requirements of BSA and USA Patriot Act. Do we need to disclosue this to our customers? Thanks for your help!

How can "they" limit the amount of cash that someone wants to pay on a debt they owe. Last time I checked, the currency still said "This note is legal tender for all debts, public and private".

This information is from the Birmingham (Alabama) News:

OCC ordered Birmingham-based Saks Inc. to strengthen its anti-money-laundering practices, including limiting customers' monthly cash payments on credit card accounts to $350. OCC is the primary regulator of Saks' bank subsidiary, National Bank of the Great Lakes.

The apparent reason for the order is that some retail customers paid their bill (over $10,000) with cash and althought this was reported, it was not within the time guidelines.
The stores affected are Parisian, Saks Fifth Avenue, and McRae's.

The order does not affect customers who pay their credit card bills with a check or money order, or cash purchases of merchandise.

Did you issue a notice for your credit cards? We are regulated by the FDIC and I do not see a reason to issue such an order.

The OCC issued this requirement to a specific bank based on information we do not know, but which is also specific to that bank. I don't see where this is now a mandated policy for all other Banks to begin to administer.

IMO I would call my regulator for clarification before adopting such a policy.

I hope that a customer who wants to pay on his account say in the amount of $750 is informed that he can only pay $350 today and $350 tomorrow and $50 the next day, then sues the store, the bank and the OCC because in my opinion, this is crazy. Fine the bank and the store, but don't penalize the customer.

By limiting this to cash payments, how many times could this be an issue? Wouldn't you believe that most customers who are paying more than that, in cash, are the exception?

And I would ditto Don's remarks. This sounds like a targeted action and is not applicable to all national banks. I have never seen this rule but we don't issue a card any more.

From my read of the newspaper article, I had the impression that the $350 maximum cash payment is an interim rule and that after an upgrade to procedures and system, they can do away with this maximum.