payeco

If you buy the VGC using AGC you got with CB it would be worth it if you don't have any other options. No places around you where you can get MO with debit?

You're correct, AGCs are will not work for debit. You can tell the RA cashier it's debit and swipe the AGC anyway. Sometimes they don't care.

danpeake

Obviously focuses on fraud, but could bring unwelcome attention to some favorite MS uses: http://nyti.ms/1oaQSFq

digital330

Just read the comments from "wolfie52" on NYTimes website. He is also a member of FT forum.

MaxVO

Wolfie52 feels 'hurt' and frustrated that he couldn't figure out MS. He thinks it involves returning purchased goods.

crimson12

The funny thing is, the insistence on payment with cash is what makes the fraud possible. If the payments were through CC, then the payments can be tracked and there is a paper trail. I reloaded my XYZ card using MoneyPak #123. MoneyPak #123 was purchased using Visa card #456. Visa card #456 is held by John Smith. Each step is verifiable, as opposed to a random guy showing up with a stack of $100s, which is the direction GD is pushing people. (I realize the product is marketed to the unbanked, who may not have CCs, but my point is that the push to cash would tend to increase, not decrease, the incidence of fraud.)

Mamibear

returning purchased items using any of the prepaid cards is not a smart thing to do. first, if it's for personal use like electronics, we are better off using cards with the best purchase protection guarantee/warranty like DiscIT or Amex.

for those who buy with intent of returning items, most merchants will refund the amount to original mode of tender which is the prepaid debit card, instead of cash so that doesn't help them at all. AND, if by chance, they already tossed the card, they may be SOL.

nyold

+1 to this. I'm seriously confused by the insistence of making MP or even VR cash only. If the reason they cited is because of fraud, using cash is exactly what launderers would do.
If their reason is because too many people were doing it in large volume for MS and thus hurting inventory and/or profit margin etc, then maybe yes. But no, don't quote fraud and laundering as the reason behind pushing it to cash. It doesn't make any sense to me.

crimson12

Exactly. The misplaced 'fraud' concern shuts down people who are not committing fraud, while making it MORE easy to commit actual fraud.

And permitting people to buy these with CC presumably puts more of the cards in circulation and increases their brand awareness, which one would think is a good thing. (I can imagine that if, say, 95% of their customers were doing MS, then yeah that's a problem, but I don't get the sense that's the case.)

FTR 787

stores dont give a crap about prepaid fraud (esp considering how infinitesimal it is in the numbers quoted in the NYT article, compared to other CC fraud or overall fraud in the country,) atleast not as much as they care about their bottom line... the reason to switch to cash only is because for the idiots who get scammed, these stores are worried about chargebacks -- or maybe they have been burnt by chargebacks from prepaid/reloadable products which leads them to change 'policy.' thats why the switch to cash only -- for which there is no recourse (atleast as far as the store is concerned) if you're stupid enough to get duped.

toxicity

To anyone that is remotely financially literate, that makes perfect sense. But have you set foot outside lately? 99% of people out there have NO F'IN CLUE about anything related to money. It's incredible.

UncleBill

The only argument to your logic is that it reduces credit card fraud, but I don't buy that is significant when compared to the other fraudulent uses.

iahphx

Yeah, I happened to see a non-virtual copy of the NYTimes today, and was horrified to see on the front page a color picture of a Moneypak card and the headline "Popular Prepaid Money Card Opens Path to Fraud Schemes."

Most of the article is about fraud that would be completed on complete idiots, like the kind of folks who would wire money to Nigerian princes.

I honestly can't believe THAT would be what Moneypak, the merchants or the Feds would truly be worried about. I do think there's a criminal element out there who does use these cards to "move cash around." I have no idea how large this element is -- compared to "legitimate" users or Flyertalkers who are each buying thousands of dollars of prepaid cards to move in a money circle.

halfleafclover

This. Stores are only worried about fraud they could be held liable for IE credit cards.

zgrzfg

Went to the RA store during lung time today and was told Moneypak now only can be purchased with debit card or cash. This is the store which I made most of moneypak card purchase and all cashiers are friendly and never check ID. anyone else?

Zamboni Driver

A counter point to the argument above (cash vs. credit cards) is that it's a lot easier to steal a CC number than $500. At the end of the day, if a customer buys a MP with cash, it's a legit transaction that won't get reversed. With a CC, the potential for fraud is higher. So from the vendor's standpoint, going to cash only reduces the number of fraudulent transactions.

If the objective is to fight money laundering or other criminal activity, then yes - CCs offer better tracking than a cash purchase.