Q&A: What is the difference between a Cash Dispersement or a Cash WithDrawal Transaction

Q & A Time from the mailbag:

Scott Asks:

In MasterCard, transactions Cash Disbursement and Withdrawal are regarded as two different transactions (They have different transaction type codes). What are the differences between these two transactions? What are their individual usage scenario ? “

Great question, A cash withdrawal is generally associated to a ATM or Debit Transaction where the full transaction amount can be immediately debited by the Card Issuer and Cash Provided to the Card Holder. While a Cash Disbursement transaction is generally something a Card Holder can request at a financial institution that he may not have a relationship with – Think of a cash advance of your Visa or MC card at a Bank, or if you have prepaid card or payroll card that you need to get money or cash from at a credit union that you don’t have an account with.



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