Yes, that is why you have to worry about SAR/CTR.

Ok, maybe I am missing out something, but what's the deal with purchasing money orders? You can't use a credit card to purchase those right?

Can someone point me to the correct direction as to what's the deal?

No, assuming you accept the risk of SARs/CTRs. Depositing MOs to a bank at most gets you banned from the bank (and perhaps SARs filed). Submitting MOs to Chase and other card issuers could result in a ban which means no more new cards with bonuses. This is why some people think it's nuts to pay off Chase etc. with MOs and instead use local banks or banks that don't issue cards with lucrative bonuses.

According to the reports member made, Chase Compliance/Fraud warns you before they shut you down on the CC. If banking, no warning because of the Bank Secrecy Act.

You can't?

Or CU's.

Directly, no. But if you have the buxx or follow the birdie or serve amex you can fund the card that funds the mo with a cc.

And BoA Risk Closure just shuts you down with no warning.

Others have reported all Chase accounts closed with zero warning. Caveat emptor.

Read through some of the banking forums. It depends on the hair trigger of the compliance officer which appears to vary significantly across financial institutions. Some will call the customer to inquire about the deposits, which is in essence a warning that they are suspicious about the behavior. If the explanation is unsatisfactory then SAR(s) filed (yes without your knowledge) and maybe account closure follows. Others shoot first and don't ask questions later.

Thanks for the insight.

If risks are about the same for using MOs, how are they compared to billpay in WM/K-Mart? Do card issuers consider "paying cash in WM" more suspicious than using MOs?

I've wondered about this myself - maybe someone in the banking industry here on FT will respond. I'm willing to take the risk of paying off personal credit cards using a bill pay service. But I'm having trouble coming up with legitimate scenarios that would explain a business using one of these services to pay their credit card bills.

You dont need to explain anything to anyone (as long as you are doing anything illegal).

I insert the NOT, assume that is what you mean.

Still you should keep good records of everything that you can show the chain of events when and if you are being asked and to explain why you engaging such behavior.

Not to mention if you get audited by the IRS and they want you to justify your deposits/spending that far exceed your income

Please tell us what will you do when your bank's risk management decides to unilaterally close all of your accounts including those juicy credit cards for good? What will you do when the IRS decides to audit you and your bank account? Remember, you told us not to explain anything so you don't get to say anything about how they involve GCs to the bank or the IRS.