06-12-2010, 09:49 AM
(This post was last modified: 06-12-2010, 09:51 AM by IgnazSemmelweis.)
Not sure if the CC companies have clamped down on this yet but...
People were buying gold and silver on their credit cards to rack up reward points/cash back offers, then turning around and selling the gold and silver to get their investment back with frequent flyer miles or cash back for their troubles.
Back in ye olden days, when you could still get cash back miles for transferring credit card balances, people would just rotate balance transfers between their credit cards to build up the miles.
All these are examples of what you're talking about.
The power of arbitrage: ask Mr. Pickles | http://www.bullfax.com
Enthusiasts of frequent-flier mileage have all kinds of crazy strategies for racking up credits, but few have been as quick and easy as turning coins into miles.
At least several hundred mile-junkies discovered that a free shipping offer on presidential and Native American $1 coins, sold at face value by the U.S. Mint, amounted to printing free frequent-flier miles. Mileage lovers ordered more than $1 million in coins until the Mint started identifying them and cutting them off.
Coin buyers charged the purchases, sold in boxes of 250 coins, to a credit card that offers frequent-flier mile awards, then took the shipments straight to the bank. They then used the coins they deposited to pay their credit-card bills. Their only cost: the car trip to make the deposit.
People were buying gold and silver on their credit cards to rack up reward points/cash back offers, then turning around and selling the gold and silver to get their investment back with frequent flyer miles or cash back for their troubles.
Back in ye olden days, when you could still get cash back miles for transferring credit card balances, people would just rotate balance transfers between their credit cards to build up the miles.
All these are examples of what you're talking about.
The power of arbitrage: ask Mr. Pickles | http://www.bullfax.com
Enthusiasts of frequent-flier mileage have all kinds of crazy strategies for racking up credits, but few have been as quick and easy as turning coins into miles.
At least several hundred mile-junkies discovered that a free shipping offer on presidential and Native American $1 coins, sold at face value by the U.S. Mint, amounted to printing free frequent-flier miles. Mileage lovers ordered more than $1 million in coins until the Mint started identifying them and cutting them off.
Coin buyers charged the purchases, sold in boxes of 250 coins, to a credit card that offers frequent-flier mile awards, then took the shipments straight to the bank. They then used the coins they deposited to pay their credit-card bills. Their only cost: the car trip to make the deposit.
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"We are what we repeatedly do. Excellence then, is not an act, but a habit." - Aristotle
"The shortest distance between two points is usually under repair." - Anonymous
[SIZE="1"]CLEP/DSST/ACE credits (39), Total costs $1,383
Principles of Management (71), Principles of Supervision (446), Principles of Marketing (76), Management Information Systems (466), Human Resources Management (67), Intro to Computing (465), Environment & Humanity (69), Technical Writing (65), Intro to Business Law (75), Business Law II (80), Principles of Microeconomics (70), American Government (69), Straighterline Accounting II (90%)
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