Purchasing miles for under a penny per mile

Discussion in 'General Discussion | Miles/Points' started by lovetofly, Sep 29, 2011.  |  Print Topic

  1. lovetofly

    lovetofly Silver Member

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  2. Andyandy
    Original Member

    Andyandy Gold Member

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    Keep in mind that there's considerably more risk with this method than there was with the Mint. Financial review isn't a trivial hassle. Square could also stop accepting Amex Gift cards just like the Mint did.
     
  3. rharrigill
    Original Member

    rharrigill Silver Member

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    Is the Amex FR risk due to the Amex gift cards, or only if you use an Amex CC to buy the gift cards? If a Chase card is used, I assume there is no risk of an Amex FR just for buying their gift cards, correct?
     
  4. javacodeguy

    javacodeguy Gold Member

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    I doubt Square would stop taking gift cards of any kind. They are getting their money, so why do they care? The mint stopped the dollar coin shipping because they were losing money. They were shipping tons of gold coins for little or free shipping; either way at a loss.

    The main risk of this is having Amex flag your card and put you through a financial review or close your account.
     
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  5. thegrailer
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    thegrailer Silver Member

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    Has anyone had experience with the Amex financial review? If one buys 5-6K per month, is that something to trigger one? I see no way to make spend on my Hilton Amex without the mint. 20K of gift cards could just do it. Thoughts?
     
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  6. catgirl
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    catgirl Gold Member

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    That's one thing I do not want to encounter. :eek:
     
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  7. JohnDeere19
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    JohnDeere19 Gold Member

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    Never and I really hope I don't ever. It's basically advised to close your account on your own otherwise they could close it even if you send out all your info and that could really hurt your credit score.
     
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  8. Scottrick
    Original Member

    Scottrick Gold Member

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    True. There is no reason why anyone would shut this down. You're not scamming anyone. You pay the shipping and handling to buy a gift card, just like anyone else. You pay the credit card processing fee to redeem it with Square, just like anyone else. But most people don't do both.

    The only reason this would not work is if the CC company wises up and starts processing the gift card purchase as a cash advance. Again, not because they're taking a loss on it but but because they want to close a loophole (they have to pay someone for the points, so they'd like to have as many exclusions as possible).
     
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  9. myhotrs

    myhotrs Active Member

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    Do we for sure know that using Amex cards to buy Amex Gift Cards provides points?
     
  10. Jimgotkp
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    Jimgotkp Gold Member

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    If you want to risk getting a Financial Review or having AMEX scold you. Sure!
     
  11. coolguy0007

    coolguy0007 Active Member

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    Hi,
    I am a newbie. Is it ok if I buy 500$ gift card for a couple of months. I have a aa visa and aaadv American express card. I need to meet 4000$ on each card.

    Thanks.
     
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  12. ejs621

    ejs621 Active Member

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    Good luck with charging 3,000 + 2,000 on a new square account. Most likely square will put a 30+ day hold on those funds before depositing to your account.
     
  13. ACMM
    Original Member

    ACMM Gold Member

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    Cannot help you with your specific question, but wanted to welcome you to MP as I see you joined today! Welcome aboard and have fun! :) and I hope you are enjoying the MP app on your phone :)
     
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  14. JohnDeere19
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    JohnDeere19 Gold Member

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    No, citi treats these as cash advances.
     
  15. coolguy0007

    coolguy0007 Active Member

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    Thanks. What about citi AA Visa card?
     
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  16. JohnDeere19
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    JohnDeere19 Gold Member

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    CITI treat these as cash advances...the AA Visa card is a Citi card. They treat all transactions from financial institutions as cash advances from what I understand.
     
  17. scotchjeff

    scotchjeff Active Member

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    If I called Citi and told them I am a General Contractor and I am paying all of my subs with AMEX gift cards I wonder what they would do.
     
  18. rajuabju
    Original Member

    rajuabju Gold Member

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    Any CITI issued card will treat them as a cash advance.

    I also decided not to try this with my AMEX (or any other) card... not worth the FR risk which I think its fairly substantial.
     

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