Do credit card companies require a merchant to sell a product to submit a charge?

Question

For example, do online cash advance companies just charge a credit card for cash, pay the transaction fee to the credit card company and charge their own fee to the customer; thus, a cash advance company would take no risk? Then, could a person create a site to do the same and just undercut the margins in this business?

Answer 1

I'm not sure of if you can get a merchant account without a product. What I do know is that my bank's ATM network is already undercutting YOUR cost for cash advances.

Answer 2

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Answer 3

As long as the transactions are separate. It will work, but you will not be able to remove any profit without creating a falling house of cards.

By triggering a withdrawal everything will come to an end before it can continue again.