Cash Disbursement

In the payments industry, a cash disbursement refers to the payout of funds in the form of cash, typically from a consumer's bank account. This transaction often occurs through two primary methods: withdrawals from an Automated Teller Machine (ATM) or through cash back transactions at a retail point of sale.

Typically, cash disbursements via debit cards are subject to certain rules and limitations, which may include daily withdrawal limits and transaction fees. These limits are often set by both the issuing bank and the ATM network, and they are designed to protect customers and banks from fraud and to manage liquidity.

Cash disbursements are generally not permitted with credit cards in the same way. While cash advances on credit cards are possible, they are considered a form of borrowing and come with high-interest rates and fees, as opposed to direct cash disbursements from a debit account, which simply use the cardholder's existing funds.

Overall, cash disbursements provide a crucial financial service by enabling convenient access to physical cash, which remains a necessary aspect of daily transactions for many people.