Disclosure: Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. Links in this post may provide us with a commission.
It has now been widely confirmed that most if not all CVS stores will become cash only for the purchase of Vanilla Reloads within the next couple of days. A POS update is being pushed out that will lock the register so that it only accepts cash for many prepaid cards including Vanilla Reloads.
Over the past couple of days I have seen many people turn on bloggers to blame them for the demise of Vanilla Reloads at CVS. I might understand this line of thought if Vanilla Reloads weren’t so widely known or if CVS just started selling them. Considering this “trick” has been around and widely blogged about for 18 months, I just don’t see the logic.
So if not the bloggers, then who killed Vanilla Reloads? I think you only have to go as far as the most logical answer to explain this. Fraud! Let me tell you a story.
The other day my wife ran to CVS to buy Vanilla Reloads shortly after that memo leaked. After arriving, she saw something very interesting. When she walked in, a woman was at the register buying a prepaid card with a credit card. The curious things was that she only loaded $5 on to that card and paid a $4.95 fee for a total of $9.95. The clerk questioned her as to why she would load so little, but didn’t even check her id.
Five minutes later my wife saw the same lady come back to the register. This time she bought a $500 prepaid card. It was obvious to my wife that the original purchase was a test to see if it would go through. On neither of the transactions did the CVS clerk check her identification. Who is going to eat that money? Most likely CVS since they didn’t verify the ID.
I think CVS liked selling prepaid cards like the Vanilla Reloads with credit cards. It helped their sales figures and they obviously were making money off of it. When companies stop making money, then they change their policies. My guess is that the cost of the fraud outpaced the profits from the cards.
While I am not saying that bloggers are completely innocent, it is far more likely that CVS changed their policy based on situations like my wife witnessed. The main point of this post is not to place blame on anyone or anything. In the end, this little chapter of manufactured spend has come to an end. While Vanilla Reloads were incredibly convenient, there are so many MS methods left, that I am choosing to be grateful today.
Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.