Editors note: I know today’s post is obtuse, and one day we’ll be able to talk about it more freely. For now if none of this makes sense to you, you’re probably not caught up in it and you likely have nothing to worry about.
Sometimes when something in the hobby blows up spectacularly there’s both direct and collateral damage. Yesterday afternoon a wave of both types struck members tied either directly or indirectly to a particular fitness group (even those working through a ‘neutral’ a third-party) and the net effect was a flurry of PayPal shutdowns in a scene that was reminiscent of a post-battle shot that you’d see in Band of Brothers.
If you’re caught up in the shutdowns: First, I’m sorry, that sucks. Second, it is possible to get a new PayPal account going using techniques discussed in Dodging the Ban Hammer. So, recover from your bad workout and get back out there just like Matthew McConaughey’s acting career does over, and over, and over again. Like seriously, so many times.
Have a nice weekend!
Look, if Matthew McConaughey recovers from looking like this, you can recover from PayPal.
The Citi Shop Your Way Rewards Mastercard, an original MEAB Unsung Hero, now allows for points redemption to Visa e-gift cards at the same redemption rate as other gift cards, making this the new best points cash-out option and making the card even more valuable.
Lowe’s has an in-store promotion for a $15 Lowe’s gift card with the purchase of a $200 Mastercard gift card. The Mastercards are Pathward and have an activation fee of $5.95 to $7.95 depending on the variety, and the resale rates on the Lowe’s card are between 82% and 84% making this a profitable deal without considering credit card rewards.
There’s a limit of two per $15 Lowe’s cards per email address, but someone told me it’s possible to get more than one email address. I know, sounds weird right?
The action item on this one? Start thinking up new names for the Bilt rewards program and share them around your circles. I can’t wait to hear what you come up with.
You’d better sit down for this, because I think you’re going to be blown away, err, wait. The opposite actually:
Staples will be selling fee free $200 Visa gift cards in-store starting Sunday and running through the following Saturday, limit eight per transaction. As usual, try for multiple transactions back-to-back to minimize the time spent in a 12,000 square foot store manned by two employees, one of whom is in the back room watching TikTok.
American Express’s Delta co-brand cards have increased sign up bonuses:
– Personal Gold: 75,000 SkyMiles after $2,000 spend in six months – Personal Platinum: 75,000 SkyMiles and 10,000 MQM after $5,000 spend in six months – Personal Reserve: 100,000 SkyMiles and 10,000 MQM after $5,000 spend in six months
AmEx used their random number generator with these offers so if you don’t see them, switch browsers, go incognito, connect to a VPN, try mobile, yell at Richard Kerr between lawsuits, or something similar until you do see them. (Thanks to rep-swe)
Have a nice weekend!
The real surprise isn’t Staples, it’s what’s at the bottom of the slide.
The Citi Shop Your Way Rewards Mastercard, an original MEAB Unsung Hero, now allows for points redemption to Visa e-gift cards at the same redemption rate as other gift cards, making this the new best points cash-out option and making the card even more valuable.
Lowe’s has an in-store promotion for a $15 Lowe’s gift card with the purchase of a $200 Mastercard gift card. The Mastercards are Pathward and have an activation fee of $5.95 to $7.95 depending on the variety, and the resale rates on the Lowe’s card are between 82% and 84% making this a profitable deal without considering credit card rewards.
There’s a limit of two per $15 Lowe’s cards per email address, but someone told me it’s possible to get more than one email address. I know, sounds weird right?
The action item on this one? Start thinking up new names for the Bilt rewards program and share them around your circles. I can’t wait to hear what you come up with.
You’d better sit down for this, because I think you’re going to be blown away, err, wait. The opposite actually:
Staples will be selling fee free $200 Visa gift cards in-store starting Sunday and running through the following Saturday, limit eight per transaction. As usual, try for multiple transactions back-to-back to minimize the time spent in a 12,000 square foot store manned by two employees, one of whom is in the back room watching TikTok.
American Express’s Delta co-brand cards have increased sign up bonuses:
– Personal Gold: 75,000 SkyMiles after $2,000 spend in six months – Personal Platinum: 75,000 SkyMiles and 10,000 MQM after $5,000 spend in six months – Personal Reserve: 100,000 SkyMiles and 10,000 MQM after $5,000 spend in six months
AmEx used their random number generator with these offers so if you don’t see them, switch browsers, go incognito, connect to a VPN, try mobile, yell at Richard Kerr between lawsuits, or something similar until you do see them. (Thanks to rep-swe)
Have a nice weekend!
The real surprise isn’t Staples, it’s what’s at the bottom of the slide.
It’s been an open secret that certain types of debit cards give cash back, and a slightly less open secret that some cash-back debit cards are friendly to manufactured spenders by design. Yesterday, one of the recent favorites was nerfed for nearly all useful plays and now small spenders and heavy hitters are wandering through the stages of grief from a lost revenue source. Once you’ve moved through the stages, take stock and do the following:
Realize that the same plays work with other similar products
Remember what worked here for future probing
Look for alternative plays that work with the nerfed product under its new constraints
I’m sure there are still opportunities with the nerfed debit card, and I’m sure that other debit cards will step up and take its place. Keep looking, and have a nice Thursday!
Remember that even the lessons of being Bonvoyed can lead to new opportunities.
There was temporary glitch that allowed for massive overdrawing of fuel points accounts that lasted several weeks, and a few end-users took accounts extremely negative
We’ve seen multiple reports of continued overdrawn accounts since the glitch, but in small balances unlike what had happened in the past
With that in mind, what caused Kroger’s systems to go from effectively zero policing to massive shutdowns? Only the folks at Kroger HQ in Cincinnati know for sure, but there are a few possibilities:
Significant money was taken from Kroger’s balance sheet during the redemption glitch, so putting an end to reselling became a significant business decision and staff was allocated specifically to monitor and lock accounts
Kroger may have implemented facial recognition technology as an anti-reseller technique
Kroger may be successfully fingerprinting reseller’s electronics devices and shutting down accounts associated with those devices
Reactions
We’ve seen varying reactions from the community to the increased account shutdown activity:
Gift card and fuel point resale rates have rocketed above 100%
Many end-users can’t logistically work under the current constraints and have exited
Some fuel points brokers have instituted same day redemption policies and have indemnified buyers from loss within a certain timeframe
Many gift card and fuel points resellers have stopped buying all together
The Future
My crystal ball isn’t any better than average, but I think that as the fuel points resale market dwindles in efficacy, rates for bulk third party gift cards which are normally partially subsidized with fuel points will climb, buyers will continue to pull-back, and potentially new workarounds will emerge; frankly that was an easy prediction though because all of those things have already started to happen.
Special thanks to Eugene, DCB, and several other anonymous brokers for providing background information and consulting for this article. Good luck out there!
The glitch made gas so cheap that end-users could afford to use it to water their cement.
UPDATE: MSN Flyer reports that American Express charged a cash advance on a purchase at vanillagift.com as well. The issue appears wider spread than we thought and is a troubling development.
American Express is historically very forgiving with cash-like purchases, seeing a cash advance show up on a statement is effectively unheard of unless you visit an ATM, run a bank teller cash transaction, use it at a casino, or for a payday lender transaction. In fact, I’ve never seen a cash advance on any of my American Express cards in my manufactured spend history, even when the merchant sells nothing but gift-cards or when buying literal currency from the US mint.
There’s something rotten in Denmark Manhattan though: There are now two reports of a cash advance fee being charged at a mostly under-the-radar Mastercard gift card online retailer when using an American Express. One of the reports from includes a screenshot of the transactions. (Many thanks to reader Nick)
I haven’t purchased gift cards from this retailer in several weeks so I don’t have a datapoint of my own, but I can say that this retailer has been wonky with American Express for about two months. Some of its quirks:
Requires AmEx SafeKey, but only sometimes
Orders occasionally pass SafeKey but then sends a failure to the retailer
SafeKey tokens can leak to or from other sites
Pending charges started appearing with a merchant name of “OTH MISC” or was blank, and the name only corrected when the charge actually posted.
Was the cash advance charge intentional on American Express’s part? I’m honestly not sure, I think it’s equally likely that the vendor messed up their merchant account in some other way that caused the cash advance and it may be fixed in a few weeks. Also, recall that historically when American Express is sick of manufactured spend at a particular retailer they just stop awarding points but still let the transaction through rather than charging a cash advance fee, like with Simon.com purchases, so it’s an odd turn to blatantly charge cash advances on a similar retailer.
Regardless of the cause, watch your American Express manufactured spend charges closely for the next couple of months until we get a better handle on what’s up.
The plumbing between a certain gift card vendor and their merchant processor.
Even when all of the above died there were still several non-public ways to load Stockpile, including:
With a credit card masked by some digital wallets (when correctly configured)
Using certain widely available gift cards that Stockpile treated as debit
With the above methods, you could load $6,000 per week per payment method per player, and you could do even better if you bought anonymous Stockpile gift cards too. Well, all of that came crashing down earlier this week like it was BeachBody stock, with a new $100 per rolling 24 hour purchase limit with any card for funding your account. Currently the only way I know of to get more volume is via ACH, which obviously is a non-starter for manufactured spend.
Lessons
It’s no secret that I love FinTechs for manufactured spend, and lessons from Stockpile apply to other companies:
Try everything when a platform takes cards (Credit cards, gift cards, rewards debit cards, digital wallets, crowbars, etc)
Limits can be per-funding type
Limits can be different than advertised
There are often backdoor ways into scaling
When a company has been good for MS and something dies, that doesn’t mean stop probing, a very patched ship probably still has a leak somewhere
Have a nice weekend and go pound those FinTechs like you’re Gallagher and they’re watermelons.
Stockpile’s repair job to keep credit cards and gift cards out of its system.
Reader Gene was the first to let me know that Simon cards stopped working for purchasing money orders at Safeway late last week. It’s the next major in-person liquidation method to fall for Metabank / BHN gift cards, which obviously (as the kids say) sucks.
Background
Metabank/BHN Visa and Mastercard gift cards are some of the easiest cards out there to get at a discount or to buy in bulk, either through Office Depot/Office Max sales, Staples sales, or Simon volume plays. It used to be really simple to liquidate them in person by loading to a prepaid card like BlueBird or converting them to a money order. Unfortunately, that’s been changing over the last year or so:
Most Wal-Mart registers stopped accepting Metabank debit swipes over $99 in November of last year. (hint: most)
Many Kroger registers stopped accepting Metabank debit swipes over $99 at the same time. (hint: many)
As of late last week, Safeway stopped accepting Metabank debit swipes, probably also with a $99 cap. (see above)
Why Now?
Why are major grocery stores clamping down on this? I can think of two reasons, one for each side of the transaction, but in the end both are really just about controlling profit.
First let’s tackle the grocery side with some background information: Prepaid debit card transaction fees are split into two tiers, covered and exempt, each with its own rate. As with most regulation there is nuance to that definition and the fee structure, but it’s not particularly relevant here. What you should know is banks with less than $10 Billion in assets (like MetaBank at approximately $7 Billion) have a higher interchange fee than larger banks. That smaller bank fee is published at somewhere around 1.15% + $0.15. Yes, there is a cap for supermarket transactions, but usually money centers at supermarkets don’t code as a supermarket transaction because they’re, well, money centers.
So when you swipe a $500 prepaid MetaBank gift card to buy a money order for $499.02 the store may be paying somewhere around $5.90 in fees, but charging you less than $1 for the transaction. Ouch. That’s plenty of reason for major retailers to want to shut down prepaid cards from MetaBank when they happening at volume.
Ok, so what about the other side? Why would MetaBank want to shut this down? That’s an easy one. They’re collecting somewhere between $0 and $5 in purchase fees from you, and that number is probably closer to the $0 end after sales commissions, shipping, and other ancillaries are accounted for — so those don’t have a big impact on revenue. They make their money from collecting their portion of interchange fees when you spend on the card. Those fees for a credit swipe are going to be around 2% of the total purchase price or better, vs at best 1% when all is said and done on a debit transaction. By blocking debit transactions they’d approximately double their net revenue.
Where Do we Go From Here?
All isn’t lost with these cards, but the game is a little harder. Here’s how to pivot:
There are Visa and Mastercard prepaid issued by bigger banks (like say US Bank) that have more assets and thus are on the lower fee tier for interchange rates. As a result, I think supermarkets and Wal-Mart have a much smaller incentive to care about money order purchases with those cards and thus they’re a safer bet for MS.
Plenty of mid-tier grocery stores still work just fine. We’ve talked about several of them on this site before, but certainly look around your area and you’ll probably find others. Don’t let the lack of a name printed on a debit card stop you either.
Certain prepaid products (not unlike GoBank) will still accept Metabank cards even though they won’t work to buy a money order.
Look for at home liquidation techniques; try payment processors, bill pay platforms, p2p platforms, etc.
Explore other techniques that don’t rely on Visa and Mastercard gift cards: buyer’s clubs, gift card reselling, review clubs, bill pay platforms, p2p platforms, social lending, coins, etc.
There are a ton of plays out there friends, keep looking!
There’s more to Wal-Mart than the Money Center. The bad news? To find it, you still have to go to Wal-Mart.
