Obligation for Cash Advancing for Non-Customers

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Question:

With the new cards being issued for Social Security payments, does the Bank have an obligation to do cash advancing for non-customers?

Answer:

As an acquiring merchant, you are required to abide by VISA and MasterCard rules governing cash advances.

VISA Operating Rules state:
Each U.S. Member authorized to provide Cash Disbursements in the Visa U.S.A. Inc. Certificate of Incorporation and Bylaws, Section 2.04, must make Manual Cash Disbursements to other Issuers' Visa Cardholders. This includes, but is not limited to, valid Visa Payroll Cards and Visa Prepaid Cards with an unembossed Cardholder name.

MasterCard Rule 5.8.1 states:

A Merchant must honor all valid Cards without discrimination when properly presented for payment

Based on the above, yes, if you provide cash advance services, this must be extended to all cardholders.

First published on BankersOnline.com 9/26/11