Western Union gift-card swiping to get money-orders is one of the cheapest methods to meet spending requirements when you open credit cards to earn transferable points.
Western Union stores that stopped working with gift-cards
Over the last few years, several gift card issuers (e.g., BHN) have started working with Western Union terminals inside major grocery/department stores (e.g., Walmart, Publix) to prevent customers from using gift cards to get money orders.
Work around in some Western Union stores
When you purchase gift cards from specific issuers (e.g., Sutton Bank, serviced by InComm), it was still possible to use selective Western Union kiosks inside certain grocery store chains (e.g., Winn-Dixie, Kroger). Until recently, I was able to unload gift-cards for money-orders with a full amount swiping (e.g., $998 money-order for $1000 Simon Mall gift card). (review).
New change at Western Union stores
Western Union store kiosks are no longer accepting swipes at the machine after a recent upgrade and you must use a chip-enabled ATM card for the transaction. The new machines have a two-person symbol in the bottom left corner. I noticed this change in the Florida Winn-Dixie and Harvey stores this week and it may soon be a nationwide occurrence.
Conclusion
Unless the VISA gift cards start releasing a chip-enabled version, it is no longer possible to use the swipe method to unload the gift-cards at Western Union stores.