Altitude Reserve Shutdown Story
Yesterday I covered some reports that U.S. Bank is proactively shutting down accounts of some new Altitude Reserve cardmembers who are buying gift cards even in low amounts. I also covered some of the quirks and frustrations I have run into using the card. After writing up that report, I had a long time reader reach out to confirm that their account was shutdown.
This reader spent about $8K on the card (about 20% of the overall credit limit) including many normal non-gift card Mobile Wallet purchases. The reader also bought $3K worth of Visa gift cards at a Simon Mall. Apparently the Simon purchase was not through a Mobile Wallet app so it would have only earned 1X points.
When the customer looked in their Mobile Wallet yesterday, the card had disappeared. The reader then called U.S. Bank and was immediately transferred to an “investigator”. This investigator told the reader that the account was shutdown due to buying gift cards because that is a suspicious way to launder money. The investigator specifically mentioned the Simon Mall transaction as being the catalyst.
The reader tried to plead their case but was told there was no appeal. However, the reader was told they could re-apply in 3 to 4 months. This reader isn’t happy since they most likely will not ever see any rewards on their purchases and wanted me to share this story so it could help others avoid the same fate.
Bottom Line: Be VERY CAREFUL when buying gift cards with this credit card and avoid buying gift cards at Simon Malls.
Feel free to share your own shutdown story or perhaps even gift card successes with the Altitude Reserve.