Thieves Using PayPal Prepaid Cards to Steal Products
A new form of debit card theft is emerging in the Washington, D.C. area, where thieves are using PayPal prepaid debit cards to steal items from stores.
The thieves are targeting stores that accept offline transactions when a card has not been activated. They will convince the stores that a charge has been approved. The stores don’t discover the error until the thieves are gone, and then the store owner is out a product and a chargeback fee from their processor.
The Metropolitan Police Department in the nation’s capital is currently advising stores to avoid accepting offline transactions.
“Merchants who are unsure about the proper way to confirm the validity of any card should refer to the user agreements and handbooks for their credit card processing equipment,” the Department said in an issued statement.
This situation may not necessarily remain confined to the D.C. area. It could affect any merchant throughout the country. If you are a store owner, be aware of such operations so you don’t get scammed in the future.
The information contained within this article was accurate as of August 12, 2014. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.