Overnight, it seems that CVS pharmacies have stopped selling PayPal My Cash cards. Points, Miles and Martinis posted about this change this morning and Stefan of Rapid Travel Chai has since reported a Flyertalk thread with further data points.
While there was one commenter at Flyertalk reporting success in buying a card today, all other reports indicate that the register will not ring up the PayPal My Cash card, suggesting that this is something hard-coded into the register system. Several people have also called the number on the back of a PayPal My Cash card and been told that CVS has stopped selling the cards overnight.
This is a disappointing development as it was one of the easy ways to increase credit card spend and get most of it back. It seems that this is a firm decision by CVS to stop selling these particular cards. As Stefan suggests, that move is more likely the result of security concerns with the cards rather than a larger policy shift with regard to gift cards. Still, we will continue to monitor this situation for any further updates.