how safe is it to buy Money order and deposit in bank in order to spend on CC?

[doctorman]

Hey guys,

I was wondering how safe it is to buy Money order in post office or walmart with visa debits cards and deposit them bank to my bank account so I can pay the credit card as a way of spending on the CC?

I know some figures like under 2500$ and under 10,000$
but not sure how they apply!? is it a daily limit per account? per person? per bank?

is this illegal in anyway. I started doing $2K MO at walmart on top of Bluebird and I was aiming for just under $10K a month but if I can increase it safely I would like to do that.

don't want to get in trouble with IRS or any other legal issues
would appreciate you comments

[A3]

See the Chase A/A thread. Not sure what bank you are talking about though

[doctorman]

See the Chase A/A thread. Not sure what bank you are talking about though

so if I understand you correctly it depends on my bank?

I have Wells Fargo but I am open to switch if it means less headache and more flexibility on this..

[chucksterace]

See the Chase A/A thread. Not sure what bank you are talking about though

Look at the thread on Money Orders for more info

Money Orders Thread Link

[doctorman]

Look at the thread on Money Orders for more info

Money Orders Thread Link

thanks for the link.. as I go through 30 pages of comments can some one help out here and save me some time please?

[chucksterace]

thanks for the link.. as I go through 30 pages of comments can some one help out here and save me some time please?

Reading is good for you. There is some small remarks in every thread that can come in handy.

[doctorman]

Reading is good for you. There is some small remarks in every thread that can come in handy.

that link is not specifically about the legally side of this and reading 30 pages of comments is very time consuming.
again I am asking please keep your witty comments to yourself and help out with useful comments if possible.
Thank you

[chucksterace]

that link is not specifically about the legally side of this and reading 30 pages of comments is very time consuming.
again I am asking please keep your witty comments to yourself and help out with useful comments if possible.
Thank you

That my friend is a good question in a subject I do not know. But I can tell you off hand, Chase it a NO GO if you do this type of stuff.. I would create a separate account someplace else from your main account in case you do get closed. That way it wouldn't effect your main banking accounts.

[doctorman]

That my friend is a good question in a subject I do not know. But I can tell you off hand, Chase it a NO GO if you do this type of stuff.. I would create a separate account someplace else from your main account in case you do get closed. That way it wouldn't effect your main banking accounts.

you are saying that my bank might close my account for depositing many MO per month?

anyone else on this topic here?

[chucksterace]

you are saying that my bank might close my account for depositing many MO per month?

anyone else on this topic here?

Yes. A bank may close you if you deposit many money orders, do multiple amazon payments, or take advantage of your accounts. There has been accounts closed on this forum for these reasons.

ETA: Am I not good enough?

[doctorman]

Yes. A bank may close you if you deposit many money orders, do multiple amazon payments, or take advantage of your accounts. There has been accounts closed on this forum for these reasons.

ETA: Am I not good enough?

thanks for that insight I will talk to my banker to see what their side of story is..
as for IRS and I don't know financial crime etc..  is there any thing to watch for
I am trying to make couple of extra $$ to pay for the kids yeshiva but I do not want it to be illegal or cause trouble.

[chucksterace]

Well there really isnt anything illegal about buying gift cards and then money orders. Just be truthful and you will have nothing too hide. Just the banks dont like it and dont want you taking advantage of them.

[yitzf]

FTR Visa gift cards wont work at the post office.

AFAIK there is nothing illegal with depositing MO's at your bank. you can deposit millions and you wont break any laws.
The risk is in your bank not wanting you as a customer because of the elevated risks involved, primarily compliance risks.
Another small risk is reports filed by your bank to the gov't.

Anecdotally WF is from the more lenient banks in this regard, however if it's a new account, I would take is slow with any institution.

[notanonymous]

thanks for that insight I will talk to my banker to see what their side of story is..
as for IRS and I don't know financial crime etc..  is there any thing to watch for
I am trying to make couple of extra $$ to pay for the kids yeshiva but I do not want it to be illegal or cause trouble.

I remember it being discussed somewhere about the possible requirement to report the proceeds of point sales.  Maybe a CPA can chime in.

[ayman]

That my friend is a good question in a subject I do not know. But I can tell you off hand, Chase it a NO GO if you do this type of stuff.. I would create a separate account someplace else from your main account in case you do get closed. That way it wouldn't effect affect your main banking accounts.

FTFY

[chucksterace]

FTFY

LOL. Thanks. I hate that "e/a"

[ayman]

[doctorman]

my account with WF has been there for many years and they are a local bank so some bank tellers know me perhaps even. I guess I will stop by and see what their limits are.
I do not see how MO would be liability to a bank?

my other concern is if it needs to be reported to IRS.. I do  not see how though..
I am buying gift cards and MO and paying my bills.. from IRS and bank point of view I should be loosing money on the MO and Gift card fees.

If Amex sends an IRS form at the end of the year I will file it of course but beside that I don't see if anything could be out of place legally..  I am just trying to avoid any possible need for thousands of $$$ in lawyer fees just to make few hundred$ now.

[yitzf]

my account with WF has been there for many years and they are a local bank so some bank tellers know me perhaps even. I guess I will stop by and see what their limits are.
I do not see how MO would be liability to a bank?

my other concern is if it needs to be reported to IRS.. I do  not see how though..
I am buying gift cards and MO and paying my bills.. from IRS and bank point of view I should be loosing money on the MO and Gift card fees.

If Amex sends an IRS form at the end of the year I will file it of course but beside that I don't see if anything could be out of place legally..  I am just trying to avoid any possible need for thousands of $$$ in lawyer fees just to make few hundred$ now.

Just deposit the MO's in the ATM like a check.
There are no official limits, they consider it like a check.

Your bank will not report it to the IRS, however if someone gets audited the IRS can request bank statements and you'll have some explaining to do.

I'm not sure if I understand you correctly, but Amex doesn't send the IRS anything unless you're a merchant with a CC terminal.