Jan 31, 2017, 9:50 pm
Last edit by: shdflyer
11/3/17: The vast majority of popular prepaid debit cards are now blocked via a register hardcode at most locations.
This is the thread for 2017. The previous discussion can be found here.
Newbies: READ for days and learn before trying. It is best to know what you are doing, so start slow. Refer to cards as "Debit" not gc.
"Money orders can be purchased at any Post Office™ location.
Pay for your money order with cash, debit card, or traveler’s checks."
Fees:
$0.01 to $500.00: $1.20
$500.01 to $1,000.00: $1.60
Most post offices allow split payment (multiple debit cards) for one money order up to a max of $1000.
Example of how to split payment:
1. "One MO please for $998.40. Id like to pay with 2 debit cards, $500 on each."
2. Swipe first card and enter pin.
3. Remind teller that its "$500 on that card". They will change the amount on their screen to $500. Transaction goes through and a small receipt prints.
4. Swipe 2nd card, enter pin.
5. Done.
Note: If you encounter a problem with the second card and have to cancel the transaction, it can be very difficult to recover your funds on the first card. Always have a back-up payment method available (bank debit card or cash).
GC Information: The fine print on the back of the package shows the bank issuer. Don't buy GCs with tampered packaging and always use cards ASAP.
Visa OneVanilla and Vanilla GC issued by Bancorp work at PO.
Visa/MC Gift Cards issued by MetaBank have not had any success at MOST USPS anywhere in the country since around September 2016.
These will NOT work if the clerk uses a touchscreen
These MAY work, and often do, at small, rural post offices where clerks do not have touch screens.
Visa Gift Cards from Walmart issued by Green Dot have stopped working for MO purchases for some.
GAME MOSTLY OVER, MOST USPO are HARD CODED to NOT ACCEPT NON BANK DEBIT CARDS
Exception seems to be small, rural post offices where clerks do not use touch screens.
This is the thread for 2017. The previous discussion can be found here.
Newbies: READ for days and learn before trying. It is best to know what you are doing, so start slow. Refer to cards as "Debit" not gc.
"Money orders can be purchased at any Post Office™ location.
Pay for your money order with cash, debit card, or traveler’s checks."
Fees:
$0.01 to $500.00: $1.20
$500.01 to $1,000.00: $1.60
Most post offices allow split payment (multiple debit cards) for one money order up to a max of $1000.
Example of how to split payment:
1. "One MO please for $998.40. Id like to pay with 2 debit cards, $500 on each."
2. Swipe first card and enter pin.
3. Remind teller that its "$500 on that card". They will change the amount on their screen to $500. Transaction goes through and a small receipt prints.
4. Swipe 2nd card, enter pin.
5. Done.
Note: If you encounter a problem with the second card and have to cancel the transaction, it can be very difficult to recover your funds on the first card. Always have a back-up payment method available (bank debit card or cash).
GC Information: The fine print on the back of the package shows the bank issuer. Don't buy GCs with tampered packaging and always use cards ASAP.
Visa OneVanilla and Vanilla GC issued by Bancorp work at PO.
Visa/MC Gift Cards issued by MetaBank have not had any success at MOST USPS anywhere in the country since around September 2016.
These will NOT work if the clerk uses a touchscreen
These MAY work, and often do, at small, rural post offices where clerks do not have touch screens.
Visa Gift Cards from Walmart issued by Green Dot have stopped working for MO purchases for some.
GAME MOSTLY OVER, MOST USPO are HARD CODED to NOT ACCEPT NON BANK DEBIT CARDS
Exception seems to be small, rural post offices where clerks do not use touch screens.
Buy MO's at Post Office(2017-2018)[Gift Cards no Longer Allowed]
Nov 3, 2017, 12:27 pm
#1172
Join Date: Oct 2014
Programs: All of them
Posts: 1,664
My statement was mainly that Vinilla doesn't care about our business and you just confirmed that, so what's your point? On the other hand, we may have padded sales amounts for CVS and/or the GC distributor so they could suffer somehow.
Nov 3, 2017, 12:52 pm
#1174
Join Date: Oct 2013
Posts: 1,322
I also think that the whole $4.95 to $5.95 thing was kinda non-event. Someone probably got tired of explaining to mgmt why they were selling some cards cheaper than othrs.
Nov 3, 2017, 1:47 pm
#1175
Join Date: Apr 2017
Posts: 48
Revenues. The retailer sells a $500 GC for $505.95. Let's say they pay a 2% CC fee (likely higher for the CCs used to MS, but let's be conservative), netting them $495.83. I doubt they do this as a loss-leader, so let's assume they keep a mere $0.83, and forward $495 to the distributor/issuer.
Expenses. They need to pay the USPS $500 minus the PIN debit interchange fee, which is probably no more than $0.50 (I'm too lazy to look it up) -- call it $499.50.
So they're losing *at least* $4.50. This happens almost instantaneously (within a few days) in the case of MS, so they don't earn any material amount of interest on the balances they receive from the retailer before paying out to the USPS. With a normal customer, they'd earn more interchange fees, and have a longer time over which to earn interest.
Nov 3, 2017, 2:05 pm
#1176
Join Date: Oct 2014
Programs: All of them
Posts: 1,664
Really? I doubt it. Since I have no idea how the distributor and issuer split things, I'll treat them as a single entity. Let's look at their revenues and expenses:
Revenues. The retailer sells a $500 GC for $505.95. Let's say they pay a 2% CC fee (likely higher for the CCs used to MS, but let's be conservative), netting them $495.83. I doubt they do this as a loss-leader, so let's assume they keep a mere $0.83, and forward $495 to the distributor/issuer.
Expenses. They need to pay the USPS $500 minus the PIN debit interchange fee, which is probably no more than $0.50 (I'm too lazy to look it up) -- call it $499.50.
So they're losing *at least* $4.50. This happens almost instantaneously (within a few days) in the case of MS, so they don't earn any material amount of interest on the balances they receive from the retailer before paying out to the USPS. With a normal customer, they'd earn more interchange fees, and have a longer time over which to earn interest.
Revenues. The retailer sells a $500 GC for $505.95. Let's say they pay a 2% CC fee (likely higher for the CCs used to MS, but let's be conservative), netting them $495.83. I doubt they do this as a loss-leader, so let's assume they keep a mere $0.83, and forward $495 to the distributor/issuer.
Expenses. They need to pay the USPS $500 minus the PIN debit interchange fee, which is probably no more than $0.50 (I'm too lazy to look it up) -- call it $499.50.
So they're losing *at least* $4.50. This happens almost instantaneously (within a few days) in the case of MS, so they don't earn any material amount of interest on the balances they receive from the retailer before paying out to the USPS. With a normal customer, they'd earn more interchange fees, and have a longer time over which to earn interest.
Perhaps what we don't give them in the form of interest, instead we greatly inflate their ongoing balance of reserves. I don't know what other activities Matabank or Bancorp, or the GC companies engage in, but in that industry having tons of cash sitting there is a huge bonus for lending. We shall see in the coming months how Incomm responds.
Nov 3, 2017, 2:10 pm
#1177
Join Date: Jan 2014
Posts: 81
Really? I doubt it. Since I have no idea how the distributor and issuer split things, I'll treat them as a single entity. Let's look at their revenues and expenses:
Revenues. The retailer sells a $500 GC for $505.95. Let's say they pay a 2% CC fee (likely higher for the CCs used to MS, but let's be conservative), netting them $495.83. I doubt they do this as a loss-leader, so let's assume they keep a mere $0.83, and forward $495 to the distributor/issuer.
Expenses. They need to pay the USPS $500 minus the PIN debit interchange fee, which is probably no more than $0.50 (I'm too lazy to look it up) -- call it $499.50.
So they're losing *at least* $4.50. This happens almost instantaneously (within a few days) in the case of MS, so they don't earn any material amount of interest on the balances they receive from the retailer before paying out to the USPS. With a normal customer, they'd earn more interchange fees, and have a longer time over which to earn interest.
Revenues. The retailer sells a $500 GC for $505.95. Let's say they pay a 2% CC fee (likely higher for the CCs used to MS, but let's be conservative), netting them $495.83. I doubt they do this as a loss-leader, so let's assume they keep a mere $0.83, and forward $495 to the distributor/issuer.
Expenses. They need to pay the USPS $500 minus the PIN debit interchange fee, which is probably no more than $0.50 (I'm too lazy to look it up) -- call it $499.50.
So they're losing *at least* $4.50. This happens almost instantaneously (within a few days) in the case of MS, so they don't earn any material amount of interest on the balances they receive from the retailer before paying out to the USPS. With a normal customer, they'd earn more interchange fees, and have a longer time over which to earn interest.
Nov 3, 2017, 2:52 pm
#1180
Join Date: Jun 2016
Posts: 2,257
If/when chargeback occur, perhaps the downstream merchant also can get affected.
Not sure.
Nov 3, 2017, 4:00 pm
#1181
Join Date: May 2008
Location: Minneapolis
Programs: AA EXP, Hyatt Diamond, SPG Gold, GlobalEntry, Admirals Club, United Club
Posts: 1,948
Bummer - noticed yesterday that there was a different "lock" picture on the screen saying "encrypted" which I thought was humorous. I was nervous because obviously we don't like system changes, but all cards went through just fine.
Back today - no go. I tried two different POs because I didn't look here first. At the second PO the lady asked "do you want me to charge the $16?" (sort of jokingly because she knew I didn't want the MOs anymore). Oh well. Now what to do with these gift cards lol.
Back today - no go. I tried two different POs because I didn't look here first. At the second PO the lady asked "do you want me to charge the $16?" (sort of jokingly because she knew I didn't want the MOs anymore). Oh well. Now what to do with these gift cards lol.
Nov 3, 2017, 4:14 pm
#1182
Join Date: Oct 2009
Posts: 152
I believe in this game, only credit card companies always lose. That's why they don't like MS.
Retailers probably get a kickback from gift card distributor/issuer as you mentioned.
Gift card distributor/issuer get the free cash flow, in addition some bonus gains if people misplace/forgot to use gift cards.
Money order issuer also get the free cash flow, in addition some bonus gains if people misplace/forgot to deposit money orders.
Retailers probably get a kickback from gift card distributor/issuer as you mentioned.
Gift card distributor/issuer get the free cash flow, in addition some bonus gains if people misplace/forgot to use gift cards.
Money order issuer also get the free cash flow, in addition some bonus gains if people misplace/forgot to deposit money orders.
Really? I doubt it. Since I have no idea how the distributor and issuer split things, I'll treat them as a single entity. Let's look at their revenues and expenses:
Revenues. The retailer sells a $500 GC for $505.95. Let's say they pay a 2% CC fee (likely higher for the CCs used to MS, but let's be conservative), netting them $495.83. I doubt they do this as a loss-leader, so let's assume they keep a mere $0.83, and forward $495 to the distributor/issuer.
Expenses. They need to pay the USPS $500 minus the PIN debit interchange fee, which is probably no more than $0.50 (I'm too lazy to look it up) -- call it $499.50.
So they're losing *at least* $4.50. This happens almost instantaneously (within a few days) in the case of MS, so they don't earn any material amount of interest on the balances they receive from the retailer before paying out to the USPS. With a normal customer, they'd earn more interchange fees, and have a longer time over which to earn interest.
Revenues. The retailer sells a $500 GC for $505.95. Let's say they pay a 2% CC fee (likely higher for the CCs used to MS, but let's be conservative), netting them $495.83. I doubt they do this as a loss-leader, so let's assume they keep a mere $0.83, and forward $495 to the distributor/issuer.
Expenses. They need to pay the USPS $500 minus the PIN debit interchange fee, which is probably no more than $0.50 (I'm too lazy to look it up) -- call it $499.50.
So they're losing *at least* $4.50. This happens almost instantaneously (within a few days) in the case of MS, so they don't earn any material amount of interest on the balances they receive from the retailer before paying out to the USPS. With a normal customer, they'd earn more interchange fees, and have a longer time over which to earn interest.
Nov 3, 2017, 4:17 pm
#1183
Join Date: Jul 2016
Location: NY
Posts: 523
Nov 3, 2017, 4:25 pm
#1184
Join Date: Mar 2016
Posts: 288