[Update: Resolved] Major problems reported w/ Mastercard gift cards

36

Update 12/16/19: Doctor of Credit reports that funds are being returned to Mastercards gift cards affected with the line item noting “Missing MasterCard Settlement Credit’”, though it’s unclear whether this has only happened for those who filed a dispute or for everyone. It’s worth checking any cards you had caught up in this. Personally, I’ve been overly cautious in leaving a few cents on all of my GCs lately (both VGCs and MCGCs) and likely will continue to do that going forward based on DPs from the comments on this post. (H/T: Doctor of Credit).

Many users are reporting a new major issue over the past week with Mastercard gift cards. Reports are indicating that when users attempt to use the cards at some stores, the payment terminal is showing a “Not Authorized” error, but the card is being drained anyway. Comments at Doctor of Credit and reddit indicate the issue has happened at a wide range of stores, including Kroger (and affiliates), Winn Dixie, Publix, Harris Teeter, Walmart, Dollar General, Family Dollar and more . This one looks messy and I’ve not yet seen any reports of resolution, so I would recommend laying low with Mastercard gift cards at the moment (and certainly keeping your receipts even when purchases do not go through).

While there have been noted issues in the past with Mastercard gift cards (particularly from Office Max / Office Depot), the issue there has long been fraudulent draining shortly after activation and before the purchaser is able to use the card. This new issue is different: people are reporting that they attempt to use their Mastercard gift card at a store where it is expected to work (specifically for money order purchases at a number of different grocery store chains or for Bluebird / Serve loads, but I’ve seen at least one report of this happening with a regular purchase at a grocery store) and the payment terminal is showing a “not authorized” error but draining the card anyway. As you can imagine, that puts the customer with the gift card between a rock and a hard place, with the gift card issuer saying that the retailer charged the card and to follow up the them and the retailer showing that the transaction was declined.

Many people specifically note the issue happening with Metabank cards, including those purchased at Staples during the recent fee-free promotion and with $500 Mastercard Gift Cards purchased elsewhere. Blackhawk has apparently been telling people to wait 5-7 business days for the funds to be automatically returned and if they are not after that time to then file a dispute with the retailer, but reports I’ve read indicate that each retailer has reported that the transaction shows as “declined” in their system and to contact the issuer (Blackhawk). Some speculation is that the cards are auto-draining to zero when the system goes to authorize payment and that perhaps using them for a transaction of less than the total card value might not cause the same issue (i.e. using a $200 card for a transaction of $199.98 may not drain the card, whereas using a $200 card for a full $200 swipe is draining the card). Note that I haven’t seen enough data points to back that up as fact.

It is possible that this is just some sort of lag in returning the funds to the cards that will happen automatically, but I’ve seen reports of this happening as far back as 10/22 to some folks with no resolution reported yet. I’m hopeful that this one will resolve itself, but if you’re sitting on unused Mastercard gift cards, you may want to avoid the grocery store / Walmart / Dollar General and associated stores with them for now. At least one commenter reported prepaying utility bills with the cards without an issue this week, so my best guess is that the issue is somehow confined to transactions via an in-person point-of-sale machine.

This is also a reminder of the importance of keeping detailed records. I could see someone who is less organized getting cards mixed up and later seeing $0 balances and assuming that these had been used. While receipts haven’t been of much help to folks thus far, I would imagine that having both the physical card and receipt will better position you for an eventual resolution. Here’s hoping it comes sooner rather than later for those affected.

H/T: reddit, Doctor of Credit, and Miles to Memories

Email:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

36
Leave a Reply

avatar
17 Comment threads
19 Thread replies
26 Followers
 
Most reacted comment
Hottest comment thread
23 Comment authors
solutionjdChrisEdSethJeff Recent comment authors

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
Notify of
Jamie
Guest
Jamie

The problem is that there is no receipt when the card is denied. So, I have an empty card and no physical records other than from when I bought it. Hopefully since this is so widespread they will fix it and return the money automatically. But, like you say, it’s been over a week for some people.

Gene
Guest
Gene

exactly. i was using multiple MCGCs & VGCs in one transaction.
VGCs-no problem and shown on receipt.
MCGCs-“not authorized” and no record of any kind on the receipt.

has anyone won a dispute/investigation with blackhawk/giftcardmall in a similar non-fraud situation?
did it take 90 days?
which documents did you provide?
thanks!

jeff
Guest
jeff

yes, I won an investigation on 3 drained MC’s. Took 4 months. A ton of work, it would take me a book to explain all I had to go thru. Tons of hours. Got my $600 back finally.

Gene
Guest
Gene

thats great.
was there a single document or argument that helped you the most in your dispute?

Jeff
Guest
Jeff

Are you having issues? For how long and who are you fighting it out with? Blackhawk? I had the receipt from the merchant grocery store showing the “void”. I had the documentation from mcgiftcards showing the money was taken out. I had documentation from the corporate office of the grocery store showing a computer picture of the exact transaction on their computer system with MC/Maestro and then their re-submission with all the trace numbers and switch serial numbers. I had registered my cards with mcgiftcards. I sent this all in on an official dispute form to Blackhawk via certified express mail. Yet, when they scan transmit it to the actual person and department responsible in their system for this somehow they only got the face sheet letter and not all the backup. It was not until I followed up with a call to the dispute center that I was told they did not have all the information. They communicated directly, while I was on phone with this person. The person shared their e-mail address and we began communication and I sent him via e-mail attachments all the documentation. Me and this person were in repeated communication over months. My situation began July 21st. On October 17th the contact person at Blackhawk finally escalated the matter high up and on October 18th it was resolved. I had given up hope. Good luck to you Gene

Gene
Guest
Gene

thanks for the info Jeff. yes, im disputing with BHN.
the biggest problem for me and most others is that there is no receipt showing “void”/”declined”

Jeff
Guest
Jeff

I did not get one either at the initial point where the transaction happened. I had to go back a number of days later, after I found that the money did not get back to my card as the clerk said it would. I had called and spoken to the manager before I came into the store and she somehow got into the computer records and ran me a copy and gave it to me zeroxed. So, I guess I was lucky. My brother was dealing with his issue with Delta over the phone and had given them his numbers. He had nothing in hand at all either. But, somehow, the money go back on his cards after some time elapsed. Good luck and keep fighting. Somewhere there is a record of this in the computer system of the merchant. I know this as I was later given the actual computer readouts from the central office of the company. It exists. Getting it is a real chore.

losingtrader
Guest
losingtrader

OMG this has got to be scary when you are operating on incredibly thin margins and your credit card bill comes due.

Dick Bupkiss
Guest
Dick Bupkiss

If you are operating like that, you should not be playing this game. Period.

Stuff happens. Things fail. If you’re in this game, eventually something WILL go sideways and leave you in the lurch. That is inevitable. USUALLY you are able to recover you money, EVENTUALLY, but that can take months. Never, ever play this game with money that you can not afford to be without for 6 months or so.

Matt
Guest
Matt

On a maybe unrelated note. Bought a VGC (sunrise) yhe other day and cannot get GCM website to recognize it, just says unable to process. I called the number and was able to verify funds and change the pin, but after 3-4 days still can not get the website to even acknowledge the card, tried multiple different devices and browsers. Hesitant to use it for that exact same reason

Franz
Guest
Franz

Any word if this affects Plastiq payments using MCGC?

YoniPDX
Guest
YoniPDX

Used BHN MCGC from Staples purchase last week on Mortgage and Auto loans thru Plastiq drained without issue. Checked both Plastiq and GCM website after seeing post from last weeks MC sale.

toomanybooks
Guest
toomanybooks

With all these absurd MC debit card problems stretching back YEARS, you’d have to be nuts ever to buy one again.

nsx at FlyerTalk
Guest
nsx at FlyerTalk

It’s almost as if manufactured spending is more trouble than it’s worth.

CaveDweller
Guest
CaveDweller

Yup I agree just from an Old Flipper not the Fish .
CHEERs

craig
Guest
craig

so I had something like this happen a while back but what I ended up doing was taking the rejection receipt from walmart, and what happened was when the card was drained the issurer automatically turns the card off so first you got to turn it back on so returns can happen, and 2nd I had to spend about a week and half moving up walmarts chain of command where they eventually not only found the money but kept saying they try returning it and its not working so to call the issuer which is where I found out the card issuer turned it off once it reaches 0 since that time I always try and leave just .01 on the card to make sure its not turned off or anything.

HoKo
Guest
HoKo

Any updates here? Giant has 2x gas points promo ending on Thu so I’m trying to figure out if it’s safe to buy MCGC’s at this point?

Edward
Guest
Edward

Anyone has any updates on this issue? Grocery store said they didn’t take the money. MC mall said the transaction was settled??? Where is the money?? Anyone has the same problem?

david
Guest
david

The Mastercards from Staples do not work for my Cirro energy payment, but the Visa cards from Staples work fine. Also, usually when drained down to less than $10, I put the balance of a gift card to Amazon. I have not had a problem with the Staples Visa card to send the last 2 or 3 dollars to Amazon, but the Mastercard had $4.80 and if never went through.

WR2
Guest
WR2

Have their been any problems with drained MCGC when liquidating them through Plastiq? I got an opportunity for a triple stack with Staples no activation fee, Staples 2500 MR and office supplies $40 back, but if I’ll be out $400 then I’ll pass.

Seth
Guest
Seth

My $200 card has been credited the missing $200. I filed a dispute a few weeks ago. The line item for mine says “Missing MasterCard Settlement Credit (via Portal)”

Ed
Guest
Ed

Thanks for reporting this, I had just about given up. Just checked my 3 cards and they have now been reloaded. I filed a dispute on them

Chris
Guest
Chris

Just got notice and my 3 cards have also been credited the $200 back to each.

solutionjd
Guest
solutionjd

i have had the same problem with visa GCs, and blackhawk’s Customer Service is the worst i have experienced. and probably out of the country…which is kind of scary when you have had $200-800 magically disappear/ drained from your cards.
I have called, and they tell you the merchant got the money, and the merchant says they didnt, so magically, the money has disappeared.
filed disputes, and they do not respond, not even with an acknowledgement that they have your dispute filed. I would go to where ever you bought the cards, and complain, plus file a dispute with your credit card company if you bought them on credit cards. This is outright fraud. And somebody should go to jail for this theft. Too bad we cannot trust , or get service from large corporations anymore. Good Luck to you all. Prayers are at hand.
P.S. I will tell you if I get a resolution. But it appears they want to take their time.

trackback

[…] them as soon as you can (probably another reason to pass on these). There was a time last year when these were auto-draining at some stores even though the purchase was declined at the register. That eventually got resolved, but it’s a headache that probably isn’t worth inheriting […]