We have found that most fraud comes from a person (Affiliate or not) loading a card, then sending multiple P2P transfers, then charging back the load transaction. This type of fraud is well known in the card industry. The recipient of the P2P then either sends it to another party, via P2P or takes funds from an ATM. We did not discover this type of fraud; however we find a great deal of it in our system. It has been all but eradicated by the measures we have put in place.
We lose fees when we make the restrict use, so we do not take pleasure in doing so. However, we have a long term view of our business and have made the choice to restrict some use, depending on location, load method or other factors, to keep our product and business viable for those that do not defraud our system. As a rule we don?t list any of our reasons or protection measures. Hopefully this has given you some information, while I am sure it won?t make you feel better about restricted use. We are sorry if you have been inconvenienced. Please feel free to email me if you have ideas on how we can protect ourselves better and still allow you the functionality you desire. I am not agreeing to accept any suggestions, just to consider them. We know that we don?t know everything and are willing to listen to reasonable ideas. I may be reached at
[email protected]
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