The "Crime and Non-Crime of Credit Card Withdrawal and Cash Out" Practice Sharing and Exchange Meeting was successfully held

On the afternoon of March 21, 2025, the practical sharing and exchange session titled “Criminal vs. Non-Criminal Aspects of Credit Card Cash Advances and Cash-Out Activities” was successfully held in the Zhicheng Headquarters Conference Room.

This exchange meeting featured a keynote speech by Qiu Zufang, member of the Criminal Defense Committee of the China Society of Criminal Procedure Law and Director of the Board of Directors for the China Region at Jinqiao Baixin; panelists included Dong Yuqin, Vice Chair of the Shenzhen Lawyers Association’s Criminal Defense Committee and Co‑Head of the Dacheng (Shenzhen) Criminal Practice Group; Qin Jianjun, Executive Director of the Criminal Law Research Association of the Guangdong Provincial Law Society and Senior Advisor to the Yingke (Shenzhen) Cross‑Disciplinary Criminal–Civil Center; Yi Fan, member of the Guangdong Lawyers Association’s Economic Crime Defense Committee and Assistant to the Chair of the Shenzhen Lawyers Association’s Criminal Defense Committee; Zhai Zhenyi, member of the Guangdong Lawyers Association’s Economic Crime Defense Committee and member of the Shenzhen Lawyers Association’s Financial Crime Defense Committee; Guo Liang, member of the Shenzhen Lawyers Association’s Criminal–Civil Cross‑Disciplinary Committee and Director of the Zhiheng Network Crime Defense Department; Liu Yunfa, Deputy Director of the Zhiheng Criminal Center and Director of the Commercial Crime Defense Department; Liu Gang, Advisor to the Network Crime Defense Department of the Zhiheng Criminal Center; Zhang Dengfeng, Advisor to the Commercial Crime Defense Department; and Lu Rui, Deputy Director of the Criminal Litigation Legal Affairs Department, who also participated in the discussion. The event was concluded with remarks by Zhang Nannan, Vice Chair of the Shenzhen Lawyers Association’s Criminal Defense Committee and Director of the Zhiheng Criminal Center, and attended by Shen Shijin, Deputy Chair of the Supervisory Board of Zhiheng Headquarters, among others.

Yu Haiyue, Secretary-General of the Cybercrime Defense Department of the Zhiheng Criminal Law Center, presided over the event.

Guest Speech

Qiu Zufang, Member of the Criminal Defense Committee of the Chinese Society of Criminal Procedure Law Studies and Director of the Board of Directors of Jinqiao Baixin China

Attorney Qiu Zufang conducted an in-depth analysis of the issue of whether credit card cash advance activities constitute a crime or not. The legal characterization of cash-out activities involving credit cards hinges on whether they constitute the crime of illegal business operation. Attorney Qiu emphasized that the core element of this crime is “business activity,” and whether credit card cash-out constitutes such an offense must be analyzed based on the fundamental nature of payment and settlement services.

Subsequently, Attorney Qiu, drawing on multiple case examples, provided a detailed explanation of the criteria for determining credit card cash‑out activities in judicial practice. He also noted that, in the current financial environment, an increasing number of individuals are caught up in cash‑out schemes, and that, during defense, lawyers should start from the legislative intent, gain a thorough understanding of the essence of payment and settlement services, and tailor their defense strategies to the specific facts of each case.

Guest Commentary

Dong Yuqin, Deputy Director of the Shenzhen Lawyers Association’s Litigation and Arbitration Committee and Co-Head of the Criminal Law Group at Dacheng (Shenzhen)

Attorney Dong Yuqin provided a detailed analysis of the legal risks associated with cash advances and cash-out transactions using credit cards, distinguishing between their legality and illegality. Cash advances on credit cards are a legitimate financial service, whereas cash‑out fraud is illegal—particularly when it involves fictitious transactions or artificially inflated prices, as such practices may constitute the crime of illegal business operations. Attorney Dong also, by reference to specific cases, explained the criteria for determining credit card cash‑advance activities in judicial practice.

Qin Jianjun, Executive Director of the Criminal Law Research Association of the Guangdong Provincial Law Society and Senior Advisor to the Yingke (Shenzhen) Center for Cross-Practice Legal Services.

Attorney Qin Jianjun, drawing on reference cases from the Supreme People’s Court’s criminal trial guidelines, outlined the defense strategy for credit card cash‑out activities. The practice of cashing out credit card balances is a subject of considerable controversy in judicial practice, particularly when distinguishing between the crime of illegal business operations and the crime of credit card fraud. In such cases, defense attorneys may argue from perspectives such as the intended use of the funds and the genuineness of the transactions.

Yi Fan, Member of the Criminal Defense Committee of the Guangdong Lawyers Association and Assistant Director of the Litigation Committee of the Shenzhen Lawyers Association

Attorney Yi Fan, starting with the question of whether card‑nurturing behavior constitutes a crime, outlined the criteria for determining such conduct in judicial practice. Card‑nurturing activities can be categorized into two scenarios: assisting others in nurturing cards and self‑initiated, personal use. When handling such cases, lawyers should focus on the legality and reasonableness of the card‑nurturing conduct.

Zhai Zhenyi, Member of the Financial Crime Defense Committee of the Shenzhen Lawyers Association

Attorney Zhai Zhenyi, focusing on defense strategies for acquittal in cases involving credit card cash‑out activities, explained the criteria used in judicial practice to determine such conduct. Whether the act of cashing out a credit card constitutes the crime of illegal business operation hinges on whether it possesses a commercial nature. When handling such cases, lawyers should focus on key issues such as the intended use of the funds and the authenticity of the transactions.

Guo Liang, Member of the Shenzhen Lawyers Association’s Committee on the Intersection of Criminal and Civil Law, Director of the Zhicheng Department of Cybercrime Defense

Director Guo Liang analyzed the criteria for identifying credit card fraud in judicial practice. The core element of the crime of credit card fraud is the “intention of unlawful possession.” Using another person’s credit card—whether by unauthorized use or by exceeding the credit limit—constitutes credit card fraud, whereas unauthorized use of a debit card only amounts to theft. The sentencing differences are significant. Lawyers should pay close attention to the criminal‑law definition of “credit card” to avoid conflating the legal application in cases involving debit cards and those involving credit cards.

Guest Discussion

Liu Yunfa, Deputy Director of the Zhiheng Criminal Law Center and Director of the Commercial Crime Defense Department

Liu Gang, Advisor to the Cybercrime Defense Department of Zhiheng Criminal Law Center

Zhang Dengfeng, Advisor to the Commercial Crime Defense Department of Zhiheng Criminal Law Center

Lu Rui, Deputy Director of the Criminal Litigation Legal Affairs Department at Zhiheng Criminal Law Center

During the panel discussion, the guests engaged in an in-depth exchange of views on such issues as the overexpansion of judicial interpretations and the lack of compliance guidance.

Closing Remarks

Zhang Nannan, Deputy Director of the Shenzhen Lawyers Association’s Litigation and Defense Committee and Director of the Zhiheng Criminal Law Center

In his concluding remarks, Director Zhang Nannan stated that credit card cash advances are not only a legal issue but also a social one. In the current economic environment, the judiciary should exercise restraint to prevent civil breaches of contract from being escalated into criminal offenses. Defending credit card‑related cases requires integrating financial knowledge, technical analysis, and legal argumentation. We look forward to engaging in more in‑depth exchanges with our Shenzhen lawyer colleagues, strengthening inter‑firm collaboration, and jointly exploring a professionalized approach to the defense of financial crimes.

Yu Haiyue, Secretary-General of the Cybercrime Defense Department of the Zhiheng Criminal Law Center

Group photo

This practical sharing and exchange session on “The Criminality of Credit Card Cash Advances and Cash-Out Fraud” has concluded successfully. The on-site discussions were vigorous, with a continuous exchange of real-world perspectives that sparked the collision of ideas and wisdom. While effectively enhancing lawyers’ professional capabilities in handling criminal cases, the event also fostered greater collaboration and communication among attorneys from multiple regions.

Zhiheng will continue to host professional exchange events, fostering mutual learning and empowerment, and contributing the Zhiheng spirit to the high-quality development of the legal profession through its outstanding professional expertise.