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  1. #1

    Default Depositing Prepaid Credit Cards Into Your Bank Account

    My question involves business law in the state of: Maryland, Delaware, and New York.

    I have a square reader which can charge any credit or debit card.

    I purchase Visa and Mastercard Prepaid gift debit cards on craigslist and sell them online.
    Though I was thinking why not just cash them out through the square reader direct into my bank account?

    Is any part of this somehow illegal?

  2. #2
    Join Date
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    Default Re: Depositing Prepaid Credit Cards Into Your Bank Account

    I suspect it's permitted, but you need to read your user agreement with Square. If it's permitted under your user agreement, then you can use Square to process the cards. If not, then to do so would violate the terms of your contract with Square and they may take action if they detect the violation.

  3. #3
    Join Date
    Mar 2012
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    Default Re: Depositing Prepaid Credit Cards Into Your Bank Account

    Quote Quoting bludsrevenge
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    I purchase Visa and Mastercard Prepaid gift debit cards on craigslist and sell them online.
    I find it hard to believe that someone would sell such an easily used giftcard. Most likely they are bought with stolen card numbers, and you might find yourself on the hook by putting them into your account and making such a nice paper trail.

  4. #4
    Join Date
    Apr 2006
    Posts
    641

    Default Re: Depositing Prepaid Credit Cards Into Your Bank Account

    How cheap are you buying them?

    You pay a fee to Square correct?

    You would also have to report the "sale" and then pay the government their share.

    The resale of gift cards is big business. Just look at cardpool.

    - - - Updated - - -

    They could probably jam you up if they wanted to.

    https://squareup.com/legal/ua

  5. #5
    Join Date
    Nov 2007
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    Officially across the country from where I've been all my life
    Posts
    4,494

    Default Re: Depositing Prepaid Credit Cards Into Your Bank Account

    There are lots of people who see, even easily used cards like Target and Walmart. Usually because they got them as a gift and they need the cash. There's a whole market and a ton of websites and allow you to liquidate them.

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