Cash recycling limits and tests


#1

The fair usage policy, under “Cash recycling”, states “Any … usage which the Curve Compliance Team believes aims to achieve the same outcome [as withdrawing cash and using that cash to repay the underlying card] is also not permitted.”

Is there any indication about what sort of tests Curve are using for this? For example, I’ve seen savings accounts where I could pay in using a debit card; if I were to deposit money that way and leave it in the account long-term, that’s clearly not cash recycling, since the money’s in the savings account and not being used for repaying the card, but how would Curve be able to distinguish it from someone who withdrew the money straight away?

I’m using my Curve card for more-or-less everything, so it seems sensible to me to use it for this sort of thing too, but I want to make sure I don’t inadvertently break the rules and get my card cancelled.


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#2

These are all good questions - pretty sure you won’t get any answers though! :slight_smile:


#3

We have systems in place to identify any unusual activity including cash recycling. The scenario you are describing here: making a payment into your savings account for long-term investment does not fall under the Fair Use Policy’s definition of cash recycling as it’s currently described.


#4

Hi Marie,

Thank you for the reply, that’s reassuring at least. Can you give an indication of what counts as “long term investment”? Clearly withdrawing the money next day isn’t long term, but what about a month later, or three months later?


#5

I think it becomes a problem when you withdraw that money, put it back into your underlying card’s bank account, and then repeat the first step of depositing using debit card.


#6

But how does Curve identify this? They would need access to your bank account and/or credit card account, surely.

Once the transaction is complete, the money is invisible to them, as far as I can see.

By the time you repay a card balance, you could well have mixed funds and no longer even know exactly where what money came from anyway… So even harder or impossible to track over time.

And then the only response could be to cancel your card.


#7

There’s some suggestion elsewhere that the main thing they look at is transaction history. So if you’re making lots of large “purchases” with the same merchant, but not your weekly shop etc, the system will flag you up.


#8

And more likely if you always use the same amount or even numbers. For example if its always 1000 EUR with the same merchant, thats a good indication :wink: