Gift cards w/PIN's, blessing or a curse?

[CountValentine]

Many blogs and forums are falling all over themselves on this one. I have a bad feeling this is going to lead to a lot of AA in the long run. What do you think?

[yuneeq]

I think that CV thinks its a curse.

[AJK]

Of course, the more people that run to buy these things increases the odds that some(a lot?) of those people will be idiots whose spending patterns and stated income cannot support the increased spending which will, ipso facto, increase the number of A/As/FRs.

[CountValentine]

The problem as I see it unlike Amex when Chase/Citi hand out AA it results in accounts being closed.

[yuneeq]

The problem as I see it unlike Amex when Chase/Citi hand out AA it results in accounts being closed.

But anyways GC's are mostly bought with Amex unless your talking about the ink cards.

[MEIR613]

Curse.

In todays economy (DDF) alot of people think if I can spend then I apply for it.

Meaning, if there was a way to technically spend unlimited, they would just keep on signing up for cards till they bust.

The more ways there is too spend, the more people just sign up because they could reach the threshold and totally forget the fact up credit worthiness,
too many cards, very short time frame.

MHO. 

[CountValentine]

But anyways GC's are mostly bought with Amex unless your talking about the ink cards.

For DDF members yes but for the rest not the case. Also if you can't handle this type of letter you might want to think twice.

Dear CV:
Thank you for your business.
This letter is regarding your XXXX account.
Your account has been closed to prevent further use. If you or any other authorized user(s) still have a card,
please cut it in half and return it to us.
This action has been taken because of a security investigation involving your account.
You will continue to receive a monthly billing statement until your balance is paid in full.
We now consider this investigation closed.
Sincerely,
Your Security Operations Service Team

[yuneeq]

For DDF members yes but for the rest not the case.

Most churner use GC's (and not VR) to hit spending thresholds?!

[CountValentine]

Most churner use GC's (and not VR) to hit spending thresholds?!

Outside of DDF many do not use Amex to purchase GC's. DDF's main focus is bonus spend thresholds.

[Buruch]

For DDF members yes but for the rest not the case. Also if you can't handle this type of letter you might want to think twice.

Dear CV:
Thank you for your business.
This letter is regarding your XXXX account.
Your account has been closed to prevent further use. If you or any other authorized user(s) still have a card,
please cut it in half and return it to us.
This action has been taken because of a security investigation involving your account.
You will continue to receive a monthly billing statement until your balance is paid in full.
We now consider this investigation closed.
Sincerely,
Your Security Operations Service Team

Are you implying that we should use amex to avoid getting shut down, or does it not make much of a difference?

[CountValentine]

Are you implying that we should use amex to avoid getting shut down, or does it not make much of a difference?

I just have a bad feeling the CC issuers are going to catch on to this real quick and not like it. Take it as a PSA. 

[sky121]

I just have a bad feeling the CC issuers are going to catch on to this real quick and not like it. Take it as a PSA. 

Sorry to sound dumb here but what specifically is everyone worried about? That people will go out and start spending more money on gift cards and therefore get AAed?

[MEIR613]

Sorry to sound dumb here but what specifically is everyone worried about? That people will go out and start spending more money on gift cards and therefore get AAed?

You took the words out of my mouth.

[CountValentine]

My theory is they will quickly look at these as cash advances and not like it. Accounts may be closed with the dreaded “not used as intended.”  For the record none of this is going to change my pattern.

[PlatinumGuy]

Sorry to sound dumb here but what specifically is everyone worried about? That people will go out and start spending more money on gift cards and therefore get AAed?

The concern is that the transactions will get flagged, so even those using it responsibly will suffer.

[glasses dude]

The truth is if it wasnt coming hot on the heels of the whole vr/mvd shibang it would prob be a blessing, but now that any1 who has a cc is buying them and hiding them like theres no tomorrow, and every1 thinks ur supposed to hit  5k spending in one night which has led to many stores catching on and instituting cash only policies. If you throw all visa/mc gift cards into the fray its a recipe for disaster, and may even be whats going to end the vr/mvd or even just buying gift cards to hit spend and use them later on w/o the intention of just cashing them out or for use on ap...so bec of bad timing potential curse
on the other hand, you could noe purchase gc at a place where its normal to spend hundreds in a shot without raising any eyebrows...so mayb its a blessing in dusguise?

[Marco Polo]

I believe with this added on to the VR/MVD wagon, there will be many 'new to the game' people caught up in AA.

[ItzikJones]

The way I see it, the more ways people are doing shtick to get their thresholds reached, the more likely it is that the shticks get shut down.  Its that way with anything and nothing good lasts forever.....I hope I get the most I can out of my responsible VR use before all of this comes down. It's a shame I didn't get involved sooner.

[vtqanh]

Frankly speaking, responsible use these days will only mean that you're less likely to get AA or FR. It won't help the deal stay longer.

The way I see it, the more ways people are doing shtick to get their thresholds reached, the more likely it is that the shticks get shut down.  Its that way with anything and nothing good lasts forever.....I hope I get the most I can out of my responsible VR use before all of this comes down. It's a shame I didn't get involved sooner.

[ItzikJones]

Frankly speaking, responsible use these days will only mean that you're less likely to get AA or FR. It won't help the deal stay longer.

But wouldn't more people using their cards irresponsibly trigger more FR's and therefore increase the potential for drastic measures taken by CC companies?