More intense friction illegal cash

Practice cash friction lately increasingly rife. Not only service providers that increases the friction in cash, and even some individuals who provide or assist someone doing business in cash friction. In fact, this practice is considered illegal or violate provisions stipulated by the credit card industry.

Aribowo, Head of Payment System Development and Policy Directorate of Accounting and Payment System Bank Indonesia, told me, at first this practice occurs in a gold shop. However, nowadays almost all stores that have electronic data capture (EDC) provides this frictional cash.

"This is a practice of cooperation between acquire and merchants of adverse issuer," said Aribowo to Kontan, Monday (05/10/2010).
This practice of cooperation between the 'acquire' and 'merchant' adverse 'issuer'.

Issuer is the credit card issuer or bank usually. While acquire a company that provides the EDC and the look for the merchant. Merchants are shops that provide cash friction. "Growth in this business every year is quite high," he continued.

Unfortunately, the BI does not have data about this business cash friction. Similarly, Indonesian Credit Card Association (AKKI). According to the Board of Executive AKKI Dodit W Probojakti, the association has been trying to straighten up this practice since a year ago. "We have no business growth data strings of cash, but we have the data merchants negative list or a list of merchants that perform this practice. If proven, the merchant no longer allowed to operate using the credit card services," said Dodit to Kontan, Monday.

Aribowo confess, BI could reach the merchant naughty and working with the EDC provider company. In practice, the holder of a credit card swipe cards at merchants such as if the purchase of goods. The difference, after the transaction, the merchant will pay cash to the holder of the card and take advantage by applying the fee or commission.

Through this practice of frictional cash, card holders can withdraw funds in cash at a cost that is cheaper than cash withdrawals from ATMs through credit cards. In addition, through friction in cash, no card holders affected by advance fee of approximately USD 50,000 and can liquefy 100 percent of the ceiling which is still available on credit cards. So, credit card holders can take all the remaining ceiling in cash. It can not be done if taken through an ATM or a bank because there is cash withdrawal limit of about 20 percent of the ceiling.

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