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PayPay My Cash cards purchased with a credit card have been a nice little manufactured spend machine for several years. Buy $500 cards for $3.95 fee, load ’em up $500 per day / $4,000 per month to a PayPal account.
Withdrawing the money to bank accounts was a quick route to PayPal shutdowns. Instead, pairing it with the PayPal Business Debit MasterCard worked for services such as bill pay with Plastiq or RadPad allowed use of credit cards for bills that might not otherwise accept them or impose high fees.
Points, Miles & Martinis popped up today to say he had been denied sale at a CVS register this morning (he has subsequently posted to collect data points). Register had a ‘not authorized’ error message. The day prior the transaction was smooth.
Another report has surfaced on FlyerTalk with the same experience. Both have called the number on the back of the card and been told CVS ended sale of My Cash Cards overnight.
More data points will soon follow. I expect them to corroborate. Many stores have not been restocking the cards for the past several months. My recent efforts in vain to locate the cards in Seattle area stores produced claims from store managers that CVS was about to end sale of these cards.
I am not aware of any other merchants that allow purchase of My Cash cards using credit cards.
Is this the End for CVS?
I think this action by CVS is limited to PayPal My Cash cards specifically, not other gift cards. Over the past year there have been reports of hacking of these cards. The only security feature is a 9-digit scratch off pin. Each time I buy them I worry I am going to get hit with a fraud issue, such as a phony pin or pin already redeemed.
I won’t take it as indicative of a wider policy change by CVS. One Vanilla Reloads died, that, too was a targeted action.