Today, a long time customer bought something from us and asked my wife if she could give him back some cash by charging his card. Since it's a small amount, my wife agreed to do it.
After she thought about it for a while, she asked me if we should do this for everyone. Without even knowing what's wrong with it, I said no immediately simply because of the processing fees that we have to pay for such transaction. She then asked why it's not a good idea. I couldn't give her any concrete answer. To me, it sounds like something that would touch on gray areas of money laundering laws, and I also worry that it will look like some illegal activities when we report our taxes.
Anyway, I still can't say for sure why it isn't a good idea. Or, may be it is a good idea. I don't know. Can someone give me some pointers to do some researches on this topic? When I typed in "Merchant cash advances" to search, Google gave me something totally irrelevant.
