Chase suspensions for connecting prepaid products

[Daniel]

Hey folks,

Just want to share an experience I had recently with Chase. I attempted to add a Mango Prepaid and Netspend account as external accounts to Chase, and they got put in pending review status. I've had this happen before, so I called in and asked what the problem was.

The answer I was given is that they don't allow prepaid accounts to be connected to Chase. That may or may not be true; YMMV. However, I was told that they would eventually be denied.

That was fine until I tried to log in today to find my account access had been suspended. I called and explained the situation, and they eventually restored my access, but let's just say that was not one of my better moments.

Before you jump in and say, "don't MS/do anything funky with banks you want a long-term relationship with", two notes:
1. I have not MSed a dime with my Chase cards/accounts
2. I connected Mango and Netspend in order to use the Savings accounts. That's it.

Anyway, just wanted to give you all the heads up.

Cheers,

Daniel

 

[Belisarius]

Good info. Thanks. found Chase to be fine with GoBank and Serve, but it's a good caution nonetheless.

 

[Daniel]

No problem.

Quick update - Netspend specifically was the problem, and also this is completely independent from external pulls from Chase to a prepaid account. The rep I spoke to said that they are (obviously) perfectly allowed.

 

[DL172]

I think this must have to do with tax fraud. Criminals, courtesy of the IRS can easily order Tax Refunds on netspend cards with just a social and some basic info.

 

[Daniel]

Oh yes, absolutely. I'm not surprised that it happened, but I just wanted to give people the heads up even if they're being honest, so to speak.

 

[raenye]

1. I have not MSed a dime with my Chase cards

I think I found your problem

 

[inflightmeal]

I think this must have to do with tax fraud. Criminals, courtesy of the IRS can easily order Tax Refunds on netspend cards with just a social and some basic info.

Damn criminals for crapping out our legal system gaming! Bet we could both swap some interesting techniques though...

 

[Alice]

I just transferred $5000 to Netspend from BoA and no issues at all. They did two trial deposits to verify I owned the account, and then I sent the $5000 in one hit. Glad I saw this thread and decided not to do it from Chase. $5000 already transferred into the savings account and my $20 bonus posted. Process has been very smooth so far.

 

[madage]

I just transferred $5000 to Netspend from BoA and no issues at all. They did two trial deposits to verify I owned the account, and then I sent the $5000 in one hit. Glad I saw this thread and decided not to do it from Chase. $5000 already transferred into the savings account and my $20 bonus posted. Process has been very smooth so far.

Ugh. BoA charges $3 per push. Alliant CU push/pull is where it's at.

 

[Alice]

Ugh. BoA charges $3 per push. Alliant CU push/pull is where it's at.

Are you planning to do something other than just dump it in there and let it earn interest? Am I missing something? I know there is the inactivity fee to be avoided. The $3 BoA charge is annoying but didn't seem like much to just push it over there once and be done.

 

[madage]

I just don't want to pay a fee for an ACH push. I push for direct deposit requirement and pull it back because savings account is full.

 

[crapz1]

Chase suspended my account last month when I tried to add my WMMC account as an external account. Took a visit to the local branch and 2 forms of ID before they cleared it. They asked to see the card I was adding. After verifying, they said I could try adding the account again, but I decided it wasn't worth the risk. I was only linking it to push a couple of ACH transfers to WMMC for a DD bonus.

 

[MrDioji]

Yes, this same thing happened to me when adding Netspend as an external account to meet the direct deposit. It was suspended before they even did the 2 trial deposits. They also said I could try again (after 1.5 hrs on the phone and 30 minutes in-branch). No, thank you.

 

[DL172]

This is got to be related to tax refund fraud.