- Posts: 1
- Joined: Fri Nov 14, 2014 3:00 pm
- Location: usa-south
Having my card blocked now after only 1 week of spending, and talking to the CSR, I can almost assure you that MSpend is exactly the reason why this is being blocked. Why do you think that, you may ask? Well, although they wouldn't let me talk directly to the "security department" at this time, the CSR did tell me that they were looking into "fraud" that had occurred at the exact locations where I had made my, admittedly, MS purchases -- i.e. 2 of the purchases were from good sized grocery stores in the South (I bought Reloadits and Vanilla Reloads). My total purchases were only for $2500, plus about 200-300 for regular spend. I am nowhere near the level of MS activity as some, but nevertheless I was blocked. What concerns me is that I am blocked for an amount that I would normally use to buy gift cards, cash them, and use them to pay my mortgage and 2 car notes.
My feeling on all this is that someone at Diner's Club didn't anticipate all the bonus spending would occur. It would be great if one day we could hear from an insider in the credit card business as to what they are looking for. Here's my speculation on this, for what it's worth: Diner's Club/Chase/Amex must have to pay $$$ to transfer points from themselves to the individual airlines/hotel programs. For them to do that, they would have to make enough profit from the actual purchases to do that. If that's the case, then think about what it costs to get a ticket for, say, CLT to JFK, on u.s. airways, using only 9,000 british avios. How in the world would is Diner's club going to make enough money when all they get is the swipe fees on $3,000.00 of grocery purchases? NOW... add to the equation when you buy only $3,000.00 of gift card purchases, where I can assume they don't make the same percentage on a swipe fee.
Would love to hear someone else's thoughts.