Wal-Mart, Amex take on banks with Bluebird debit card
Jan 15, 2013, 8:48 pm
#5971
Join Date: Jan 2003
Location: Fairfield County, CT USA
Programs: AA PLT+2MM / DL DM+1MM / A3 *G / Fairmont LT Plat / Ritz Gold / SPG Gold
Posts: 4,077
Jan 15, 2013, 8:55 pm
#5972
Join Date: Sep 2001
Location: Washington, DC
Programs: UA Plat MM, AA Gold, Hyatt Explorist, Hilton Gold, IHG Plat, Marriott Titanium Elite
Posts: 5,015
Well, SunTrust has a free bill pay service, so paying $9 to avoid a monthly $3 fee makes no sense to me. Also, the $2 ATM fee is not all that bad unless you travel very frequently.
Jan 15, 2013, 9:06 pm
#5973
Join Date: Oct 2012
Posts: 167
No way they are paying 12.50 on $500 in fees. Im not even paying that much and they are a million times the size and volume.
Jan 15, 2013, 9:17 pm
#5974
Moderator: Chase Ultimate Rewards
Join Date: Apr 2005
Location: SFO
Programs: UA 2P, MR LT Plat, IHG Plat, BW Dia, HH Au, Avis PC
Posts: 5,457
To answer your question, yes. CVS does not lose money selling these things.
Remember that CVS is not charged by your credit card company to process credit card payment; the merchant's acquiring bank handles that, and passes that down, along with interchange fees, to the merchant. Thus, fees vary merchant to merchant, depending on the deal struck with their bank. However, CVS is likely paying less than 1.7% in total credit card processing fees. I mention this only to demonstrate that the fees to process the transaction are not that high.
CVS is given the "loading fee" + at least 1% of card value. Thus, they always come out ahead when you buy these cards, but they naturally do not want them to be bought with credit cards for the simple fact that it cuts into their profits (and the less obvious problems of their shadier uses).
Remember that CVS is not charged by your credit card company to process credit card payment; the merchant's acquiring bank handles that, and passes that down, along with interchange fees, to the merchant. Thus, fees vary merchant to merchant, depending on the deal struck with their bank. However, CVS is likely paying less than 1.7% in total credit card processing fees. I mention this only to demonstrate that the fees to process the transaction are not that high.
CVS is given the "loading fee" + at least 1% of card value. Thus, they always come out ahead when you buy these cards, but they naturally do not want them to be bought with credit cards for the simple fact that it cuts into their profits (and the less obvious problems of their shadier uses).
Jan 15, 2013, 9:17 pm
#5975
Join Date: Sep 2001
Location: Washington, DC
Programs: UA Plat MM, AA Gold, Hyatt Explorist, Hilton Gold, IHG Plat, Marriott Titanium Elite
Posts: 5,015
True. However, it has been reported elsewhere that the largest merchants (like Walmart) pay a flat 1% fee on each transaction. That would be $5 per $500 VR card. And they DO NOT get ANY discount on the actual cash that you load. If there is any breakage, it's kept by InComm. InComm ain't giving away cold, hard cash to anybody. I scoff at the idea that CVS is getting 1% of the load in addition to the $3.95 loading fee. VR cards are not like gift cards for a specific store (where the store is getting more business) or a debit card (where Amex/Visa/MasterCard generate revenue from transaction fees). So CVS does lose on every purchase over $395.00. Now, I assume they figured that the loss would be made up with other in-store purchases generated by the sale of VR cards. Maybe.
Jan 15, 2013, 9:23 pm
#5976
Join Date: Jan 2012
Location: Indianapolis, IN
Posts: 146
Oh-oh! Over on the Hilton forum someone pointed out that the new 2013 Surpass T&Cs DO NOT specify drugstores as one of the 6x bonus categories. If this is true I guess I will not be upgrading my no fee HH Amex to the Surpass in February. 
Jan 15, 2013, 9:28 pm
#5977
Join Date: Apr 2009
Posts: 543
Odds of an upgrade followed by a downgrade a few months later triggering an FR? I just upgraded recently, but might not be willing to pay the fee for the next full year.
Jan 15, 2013, 9:28 pm
#5978
Join Date: Sep 2001
Location: Washington, DC
Programs: UA Plat MM, AA Gold, Hyatt Explorist, Hilton Gold, IHG Plat, Marriott Titanium Elite
Posts: 5,015
Yes, the goose has stopped laying golden eggs. Amex can clearly see they are paying for a huge increase in points generated by CVS drug store purchases. Since they cannot technologically identify the VR purchases as cash equivalents, they have decided to take away the extra incentive to use the Amex Hilton at drugstores and thus lower their cash outlay for Hilton points.
Jan 15, 2013, 10:33 pm
#5980
Join Date: Nov 2006
Location: LAX
Posts: 2,851
Has Bluebird changed the term of reload per day? I managed to reload 3 VR for total of $500 today. All went through.
Jan 15, 2013, 10:35 pm
#5981
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,763
Jan 15, 2013, 11:10 pm
#5982
Join Date: Sep 2005
Programs: Northwest, United
Posts: 3,257
Yes, the goose has stopped laying golden eggs. Amex can clearly see they are paying for a huge increase in points generated by CVS drug store purchases. Since they cannot technologically identify the VR purchases as cash equivalents, they have decided to take away the extra incentive to use the Amex Hilton at drugstores and thus lower their cash outlay for Hilton points.
For years I've only played in the airline miles, never bothered with the hotel programs. But in anticipation of some places I'll be visiting later this year (Australia), I was about to start jumping in to the hotel programs for the very first time. I do a lot of shopping at drug stores. Any egg-laying geese available in other hotel programs now that HH has stopped laying?
Jan 15, 2013, 11:34 pm
#5983
Join Date: Feb 2012
Posts: 731
Went to my local CVS tonight to pick up some VRs. Made 3 separate purchases here in the past without issue.
This evening, I noticed someone decided to hide all of the VR cards behind the Paypal cards.
At first I thought they were all sold out but I was happy to discover their hidden location.
Went up to the counter with 2 cards but this time was rejected by the cashier. I was told that they only accept cash for the VR cards now.
I'll try again in a few days.
This evening, I noticed someone decided to hide all of the VR cards behind the Paypal cards.
At first I thought they were all sold out but I was happy to discover their hidden location.Went up to the counter with 2 cards but this time was rejected by the cashier. I was told that they only accept cash for the VR cards now.
I'll try again in a few days.
Jan 16, 2013, 12:07 am
#5985
Join Date: Feb 2012
Posts: 994
who has transferred money from bluebird to checking account?