GoBank Kicked Me to the Curb!

It has been a good run. I enjoyed our time together but it looks like Gobank and I are parting ways. Unfortunately I don’t think there is any possibility of reconciling this time.

I have had my Gobank account for 7 or 8 months now and have really enjoyed the account. Gobank is a nice addition to any manufactured spending tool belt. If you are new to manufactured spending check out An Introduction to the Basics of Manufactured Spending.

Gobank has $0 fee (unless select to pay a fee) and can be loaded for free at Wal-Mart kiosks just like Bluebird. Not only does Gobank offer a free online bill pay feature similar to Bluebird, but Gobank will also allow you to withdraw funds at ATM’s (a feature I never used).

Unfortunately, Gobank is a product of Green Dot which is notorious for shutting down those who are not profitable or abuse the account. I have been using it as a supplement to my Bluebird accounts only loading a couple thousand dollars per month and then slowly draining it via bill pay or ach payments. However this past month I have had an excessive amount of Visa gift cards to drain and as a result I relied on my Gobank account a little more than I normally would.

When I went to load my account at Wal-Mart yesterday I was denied. After returning home from my unsuccessful trip, I logged in to my account knowing full well what I would find. No surprise, Gobank had kicked me to the curb.

Closure notification from GoBank

I should have known better. I knew I would risk getting shutdown if I loaded too much to my account in one month. But I was sitting on a massive pile of gift cards and both Bluebirds had long since been maxed for this month. I didn’t realize I had already loaded $5,500 to my Gobank account this month but I knew I had exceeded my normal range.

I could have unloaded the cards via money orders, except the machine at my local Wal-Mart will not let me do more than $50 per money order recently and I hate dealing with employees at the counter more than I have to.

For those who are interested, here are the data points for my getting shutdown:

  • Had account for 7 or 8 months
  • Loaded an average of $3,500 per month
  • Never used the debit card for purchases (I know this is a big no-no)
  • Drained using bill pay or ACH payments
  • Opted for $0 monthly fee

If you want any other data points, just ask and I’ll share.

On a plus note, I just got a new Gobank account for my wife last week and the card arrived in the mail today. I think I will make sure and stay around the $3,500 per month mark as that seemed to be working.

 

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6 Responses to GoBank Kicked Me to the Curb!

  1. Joshua says:

    So what are some alternatives you wojld reccomend?

    • Joshua says:

      I mean would reccomend

    • Jeremy - The Points Traveler says:

      Bluebird is a tried and true staple that everyone should have. Also you if you do it right, you can buy gc’s through online shopping portals at a small cost or possible small profit and just buy money orders at Walmart to cash them out if you max out bluebird

  2. Jack says:

    After doing a lot of loading and very large credit card payments just days after, I got a warning from gobank saying I can’t load the card then use it to pay another card. So instead I loaded it up then walked right over to the money center and bought one big $2000 money order, thinking the debit card purchase would make gobank happy. Apparently not, as soon after I was permanently shut down.

    • Jack says:

      Sucks to be me but this is also an interesting experience, since you could say that gobank saw my quick reload and debit card purchase as a bad thing. Previously, I was under the impression that they don’t want you paying credit card bills (and that’s even what they warned me!!). But apparently Gobank either didn’t like how fast I turned around and used the money I just put in, or they have some way of detecting that I am buying a money order. It may also be that had some close human surveillance on my account, which would set me apart from the average account holder and make any MS very obvious. Either way, the customer service rep was not very clear as to why I was being shut down, even after I explained that I had stopped doing what they warned against. I guess the obscurity was intentional. They don’t want abusers, and if they lay down some clear rules, then it just makes it easier for the abusers to blend in.

      • Jack says:

        I would guess anyone who has dealt with Gobank CS can attest, their favorite phrase is “you are not using the card as intended”.

Let me know what you are thinking!