Green Dot are launching a new product that can be used to load funds onto PayPal accounts. This is called “PayPal cash powered by Green Dot at the register” and will be different to other reload cards. Here is how it will work:
- Select the retailer you want to load with
- They will provide a custom barcode that can be printed off or shown on your smart phone
- Bring the barcode directly to the register to load your Paypal card
- Pay the $3.95 fee and how much you want to load to your account
- Funds will be added directly to your Paypal account and you will receive an e-mail confirmation
It looks like this is being done to prevent fraudsters tampering with the prepaid cards to defraud consumers of their money. The e-mail that people received announcing this new product has a CVS/Riteaid logo in it, so presumably they will be the launch partners for this new product, both of these stores have stopped selling the Paypal MyCash cards.
They will also be requiring people to verify their name, address, date of birth and social security before you can add funds using this method. They will not do any hard credit inquiry. There will still be a maximum load limit of $4,000 per month, I am not sure if there will be a daily limit as well or not.
It remains to be seen if you’ll be able to use a credit card to add funds using this new bar code method or not. Hopefully the lower fraud rates due to tampering will allow them to accept credit cards, but my money is that it will be up to the store & CVS/RiteAid will opt not to accept credit card payments.
Hat tip to R. for letting me know via e-mail
