Ineteresting story here: "the coins have found at least one group of fans: Travel enthusiasts who buy thousands of dollar coins with credit cards that award frequent-flier miles for purchases. Once in possession of the coins — shipped to them by the government for free — they can deposit them into their bank accounts and pay off the credit card bills. The result: a free ticket to anywhere" http://www.npr.org/blogs/money/2011...xploit-a-government-program-to-get-free-trips
I suppose if you did it enough you might eventually get a ticket. I have over 800,000 miles in points for Alaska airlines and you know what it's good for? Absolutely nothing, so far. Airlines, like credit card companies, don't give away anything for free, and thats a fact. Guy
"The top 20 customers bought between $219,000 and $696,000 worth" I would say that is enough to earn you some serious miles! Takes money to get free stuff I guess.
Isn't this process frowned upon by the mint, as the coins are supposed to be distributed and not deposited?
Yes, if you read the article, it states that it is not illegal, but an abuse. They now limit it to 1000 coins every ten days.
Yea, I had to double check the mint's website...I could use the miles though... The exact wording: "The intended purpose of the Circulating $1 Coin Direct Ship program is to make $1 coins readily available to the public, at no additional cost, so they can be easily introduced into circulation—particularly by using them for retail transactions, vending, and mass transit. Increased circulation of $1 coins saves the Nation money.The immediate bank deposit of $1 coins ordered through this program does not result in their introduction into circulation and, therefore, does not comply with the intended purpose of the program."
It's pathetic. And the big smile on that woman's face makes me sick. She's so proud of being a part of the problem? What a deadbeat! They are ripping off the taxpayers.
Very old news. WSJ had an article on it over a year ago (Dec. 2009). http://online.wsj.com/article/SB126014168569179245.html
Not only is it old news, but I thought that several months back the mint changed the way they reported these orders to the credit card companies as cash advances and not purchases. This means those peoples "free miles" aren't free because cash advances are charged interest beginning the day of the advance. And have you looked to see what kind of rates you get charged for cash advances? If I bought $1000 worth and paid it off in full when my bill came due it would cost me $66.67 in interest and fees to get 1000 points/miles. If I did that 25 times it would cost me $1667 in interest and fees, and would be good for one nights stay in a Hyatt hotel. Paying for the room would be cheaper.
