Morality of manufactured spending and churning

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freyj6
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Morality of manufactured spending and churning

Postby freyj6 » Wed May 28, 2014 6:31 pm

I've been messing around with credit cards and points for a while, but I just recently started doing MR. I haven't really done any churning on purpose, but I do have some cards that I've milked and am going to cancel. It's just got me thinking about whether earning a few extra hundred dollars a year is worth it.

For example, what I do for MR right now is buy AMEX gift cards with my Arrival, giving me about 6.5% cash back. So basically what's happening is the stores I shop at are taking a 4% (?) hit from AMEX, and Barclays/AMEX are picking up the other 2.5%. None both the card issuers and the places I shop are losing money.

I haven't really churned but it's basically the same thing... just essentially legally stealing from the card issuers.

I suppose you could say that it's built into their system that some people would do that and they make up for it in other ways, but that's kind of like saying stores have alarm systems and insurance, so it's okay if you can get away with robbing them.

Anyway, just some food for thought. I'd like to hear your opinions.
Current Strategy

Chase Freedom + Discover IT + Churning


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djrez4
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Postby djrez4 » Wed May 28, 2014 10:20 pm

The easiest response: usury is forbidden in both Christianity and Islam.

The entire business is technically immoral.
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freyj6
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Postby freyj6 » Sat May 31, 2014 11:38 pm

I'm surprised no one else has thoughts on this. The way I see it, as long as each business is making a profit for their service, things are good. So if I get a 1% or a 2% cash back card, then manufacturer still makes 1% and the business I'm buying from is taking a small hit but still turning a good profit. Nothing wrong with that, imo.

However, if I'm getting 6.5% and the credit card company supplying the card is only making half that, I'm basically just fvcking them over.
Current Strategy

Chase Freedom + Discover IT + Churning



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