Originally Posted by
DrSifu
Obtain a Paypal debit card (yes, you will have to give up your SSN to Paypal). Hopefully get "approved" for the card (do not know if there is a hard or soft pull, but Paypal claims if will not effect your credit score). Take your debit card and load your BB account.
I am only doing this to meet minimum spend requirements and until I can try CC purchases of Vanilla reloads at these CVS's.
So this scheme involves the same amount of fees as VR, but does require a middle man that may or may not be happy this is taking place. Only time will tell.
I have already heard that PayPal is not happy about this;
the points guy was warned. He was not specifically transferring to Bluebird, but I don't see why PayPal would be any happier about Bluebird than a checking account.
I then loaded my last $500 into my PayPal account and initiated a final $500 transfer to my checking account- no issues, whatsoever. I looked throughout the T&C and nowhere did it say that transferring to PayPal and then onto your checking account was against the rules. Sure PayPal wants me to use their service to pay bills and other vendors (so they can generate processing fees), but I’ve given them enough money over the years and my account is “legit” enough, where I felt like this small withdrawal wouldn’t raise a red flag.
However, the following morning I got an email from PayPal compliance stating:
“At PayPal we regularly screen activity in our system. A recent review of activity on your PayPal Account shows that you have been using the Green Dot MoneyPak to deposit cash and then withdraw it. Unfortunately, this activity is not acceptable use of the MoneyPak and we must request that you discontinue this activity.
The Green Dot MoneyPak was designed for the purpose of depositing cash to your PayPal account for retail purchases. Continued use of the Green Dot MoneyPaks with PayPal for the purposes of cash withdrawals will lead to limitations on or closure of your PayPal Account.
We apologize for any confusion regarding intended purposes of this new feature. Please feel free to contact us if you have any further questions.”
I am not sure what PayPal's actual problem with this scenario is, but my guess is that it looks like money laundering or possibly terrorist financing.