Overview
Credit card cashing has become a go-to option for many people in need of quick money. Whether it’s through purchasing gift certificates, using merchant transactions, taking out cash advances, or exploring mobile and point conversion services, the possibilities are varied. But not every method is created equal. Each comes with its own advantages, risks, costs, and legal implications.
This guide will walk you through the most common credit card cashing methods, explain how they work, compare their pros and cons, and provide practical advice on choosing the best one for your personal situation. By the end, you’ll know not only which path may suit your needs, but also how to use it responsibly to avoid debt traps and unnecessary losses.
1. Why Credit Card Cashing Exists
At its core, credit card cashing is about converting your credit card limit into real money. People turn to it when:
- They need immediate liquidity for emergencies.
- Traditional loan applications are too slow.
- They prefer flexibility over complicated paperwork.
- They want to unlock credit card benefits in different ways.
It’s essentially a workaround that provides fast access to cash, but it comes at a cost. Depending on the method, those costs can be financial, legal, or long-term in nature.
2. Main Methods of Credit Card Cashing
Let’s break down the most widely used options and what they mean for you.
A. Gift Certificate Purchase and Resale
This is one of the most popular routes. You buy gift certificates with your credit card and then sell them for cash.
- Advantages:
- Fast and simple.
- No bank loan application required.
- Relatively accessible through both online and offline vendors.
- Fast and simple.
- Disadvantages:
- You always lose a portion of the value, typically 10–20%.
- Risk of fraud if using unverified resellers.
- Some transactions border on illegality if no real exchange occurs.
- You always lose a portion of the value, typically 10–20%.
B. Store Transactions (Merchant Cashing)
Here, you make a purchase at a specific merchant for example https://www.creditcard.or.kr and then immediately resell the goods back to the store, receiving cash instead.
- Advantages:
- Extremely quick access to cash.
- Straightforward in practice.
- Extremely quick access to cash.
- Disadvantages:
- Often involves fake or collusive sales, which can be illegal.
- High fees and commissions.
- Credit card companies may flag such activity.
- Often involves fake or collusive sales, which can be illegal.
C. Cash Advances
A cash advance means withdrawing cash from your card at an ATM or bank.
- Advantages:
- Legal and fully supported by issuers.
- Immediate availability.
- Legal and fully supported by issuers.
- Disadvantages:
- High fees and interest begin immediately.
- Short repayment timelines can create pressure.
- Overuse damages your credit profile.
- High fees and interest begin immediately.
D. Point Redemption
If you’ve accumulated points from card use, some issuers allow you to convert them into cash credits, vouchers, or bill reductions.
- Advantages:
- No fees or losses beyond the value of points.
- Legal and encouraged by card companies.
- Low risk and easy to execute.
- No fees or losses beyond the value of points.
- Disadvantages:
- Limited by how many points you have.
- Not a reliable emergency option unless you’ve stockpiled rewards.
- Limited by how many points you have.
E. Mobile Small-Payment Cashing
This method involves using small mobile carrier payments to buy digital vouchers or goods and then reselling them for cash.
- Advantages:
- Convenient and flexible.
- Can be done without visiting a bank or ATM.
- Convenient and flexible.
- Disadvantages:
- Fees typically run 10–20%.
- Must rely on trusted providers to avoid scams.
- Fees typically run 10–20%.
F. Micro or Emergency Loans
Though not technically cashing, many people consider these as alternatives. Banks or fintech apps offer short-term microloans.
- Advantages:
- Regulated and legal.
- Interest rates lower than the hidden costs of resale methods.
- Can help maintain credit reputation if used responsibly.
- Regulated and legal.
- Disadvantages:
- May take more time than immediate cashing.
- Requires some form of creditworthiness check.
- May take more time than immediate cashing.
3. Comparing Methods
Here’s how the options stack up against each other:
| Method | Speed | Cost | Legality | Risk Level |
| Gift certificate resale | Fast | 10–20% loss | Legal if real | Moderate |
| Merchant transactions | Very fast | High/uncertain | Risky/illegal | High |
| Cash advances | Immediate | Fee + high APR | Fully legal | Moderate |
| Point redemption | Moderate | Minimal | Fully legal | Low |
| Mobile payment resale | Fast | 10–20% loss | Legal if clean | Moderate |
| Micro/emergency loans | Moderate | Low interest | Fully legal | Low |
4. How to Decide Which Method Fits You
Choosing the best option depends on your circumstances. Here’s a framework to guide your decision:
Step 1: Assess Urgency
- Need cash today? → Consider cash advances or gift certificate resale.
- Have a few days? → Explore micro-loans or point redemption for lower costs.
Step 2: Calculate Costs
- Always compare the real amount you’ll receive vs. what you’ll owe later.
- Cash advances with fees and interest can sometimes cost more than resale discounts.
Step 3: Weigh Legal Risks
- Avoid shady store or merchant deals that rely on collusion. Legal troubles will outweigh the cash you gain.
Step 4: Look at Credit Impact
- Frequent use of risky methods signals distress to banks. This can lower limits or harm your score.
Step 5: Consider Alternatives
- If you often find yourself needing cash, set up an emergency savings account. Even small amounts built over time will reduce the need for costly conversions.
5. Real-World Example
Imagine you urgently need ₩1,000,000.
- Gift certificate resale: You receive around ₩900,000 after a 10% cut.
- Cash advance: You get ₩1,000,000 immediately but owe ₩1,025,000 next month due to fees and interest.
- Point redemption: If you have points, you could offset ₩200,000 of future bills, reducing the strain.
- Mobile payment cashing: You might receive ₩850,000–₩900,000 after resale.
- Micro-loan: Borrow ₩1,000,000 at 7% APR, paying back ₩1,006,000 after a month.
In this scenario, the loan or point redemption is the cheapest, while store-based cashing or risky merchant deals are the costliest.
6. Responsible Practices
Whichever method you choose, follow these best practices:
- Reserve cashing for emergencies. Don’t use it for luxuries or non-essential spending.
- Repay quickly. Whether it’s a loan or cash advance, quick repayment minimizes costs.
- Track all fees. Keep a clear record of what each method truly costs you.
- Avoid illegal methods. Don’t engage in fake merchant transactions. The legal consequences are severe.
- Build a safety net. Over time, an emergency fund saves you from repeated costly conversions.
Recap
Credit card cashing offers multiple routes to access quick money, but not all are equal.
- Gift certificate resale is simple but always comes with a discount loss.
- Store transactions are risky and often illegal.
- Cash advances are legal but carry high fees and interest.
- Point redemption is safe and cost-effective but limited.
- Mobile small-payment cashing is flexible but fee-heavy.
- Micro-loans often provide the best balance of legality, cost, and safety.
The best method for your situation depends on urgency, cost tolerance, and long-term credit health. Learn more. The golden rule: choose methods that are legal, transparent, and manageable, even if they take slightly more effort.