The China Banking Regulatory Commission has asked the country's banks to increase monitoring that could prevent illegal cash advances made with credit cards, according to a notice from the commission. Regulators want banks to set limits on cash advances credit cardholders make and keep better watch against illegal cash advances, the notice says. Regulators hope to prevent consumers from swiping their cards at payment terminals without buying goods, receiving instead cash from merchants who take a small cut. "The notice aims to reduce the risk of illegal cash advances and ensuring normal credit card transactions in the market," Fei Cao, a payment analyst with Beijing-based research company Analysys International, tells CardLine Global. "This notice will, however, not affect normal purchase transactions."
