US Mint credit card rewards buying dollar coins!

All about maximizing your rewards!
Members share tips and tricks for getting the most miles, & points.
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Texansde46
 
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Credit Card Frequent Flyer Miles US Mint Program

Postby Texansde46 » Mon Jul 18, 2011 8:45 am

I have a question for any of you out there that do this program, lets say i purchase $1000 worth of coins on my credit card then take the coins to the bank and then pay off my debt to the creditor with those $1000 coins. Haven't i really spent a $1000 to get those frequent flyer miles? I keep hearing people tell me you can do this program without spending any money but it doesn't make sense to me, you have to pay back the credit card company. Would really appreciate anyones explanation.


DarrellEW
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Postby DarrellEW » Mon Jul 18, 2011 3:29 pm

Texansde46 wrote:I have a question for any of you out there that do this program, lets say i purchase $1000 worth of coins on my credit card then take the coins to the bank and then pay off my debt to the creditor with those $1000 coins. Haven't i really spent a $1000 to get those frequent flyer miles? I keep hearing people tell me you can do this program without spending any money but it doesn't make sense to me, you have to pay back the credit card company. Would really appreciate anyones explanation.


Basically, in the ideal case, you would buy the dollar coins with your credit card, immediately deposit them in the bank, and then use your bank account to pay off the credit card, thus losing no money, and gaining whatever rewards you get with your card.

The problem is that most banks don't like people coming in every few weeks with boxes full of dollar coins, so people have started using them to pay taxes/mortgage/etc that would otherwise come out of their bank accounts. You would then pay off your credit card with the money you have in your bank account that would otherwise go to your debts.

Anyways, now that this has had so much public attention recently, it will probably be coming to an end sometime soon.

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Pete838
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Postby Pete838 » Tue Jul 19, 2011 10:08 am

DarrellEW wrote:Anyways, now that this has had so much public attention recently, it will probably be coming to an end sometime soon.


I don't think so. Congress has passed a law requiring the US Mint to mint and circulate the dollar coins, and they have over a billion of them in a warehouse, waiting to be circulated. Yeah, I know, asinine, but that's how our government works. Nobody wants dollar coins, and we are increasingly moving to a cashless society. So, to promote the coins the mint is paying the credit card fees and shipping just to get these coins in your hand.

Texansde46, you can spend the money on things you were going to spend it on anyway (mortgage, car payment, credit card bill if you have somewhere to present a payment in coin, etc.), or you can just move it around and make commission on it changing hands. The CC companies don't care because they get a couple of percentage points every time.

By earning card rewards AND the BigCrumbscommission it turns out pretty decent for doing essentially nothing but adding a couple of steps to paying your bills.
Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.
Ronald Reagan

DarrellEW
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Postby DarrellEW » Fri Jul 22, 2011 12:23 pm

U.S. Mint Online Product Catalog

"The United States Mint has eliminated the credit and debit card purchase of $1 Coins through its Direct Ship Program effective July 22, 2011."

Camelback
 
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Postby Camelback » Fri Jul 22, 2011 8:23 pm

Pete838 wrote:I don't think so.


Sorry, think again. Per usmint.gov:

The United States Mint has eliminated the credit and debit card purchase of $1 Coins through its Direct Ship Program effective July 22, 2011. Customers who wish to purchase $1 coins through the Direct Ship Program can still do so by wire transfer, check, or money order. Customers who wish to purchase the coins by wire transfer may fax their order to: (202)756-6585. Customers interested in purchasing by check or money order may do so by writing to:

United States Mint
PO Box 71192
Philadelphia, PA 19176-6192

Please download the order form and follow the instructions provided on the form. (Order Form).

The Mint has determined that this policy change is prudent due to ongoing activity by individuals purchasing $1 coins with credit cards, accumulating frequent flyer miles, and then returning coins to local banks. Local banks, in turn, returned coins to the Federal Reserve. While not illegal, this activity was a clear abuse and misuse of the program.

The Mint has undertaken several aggressive internal and external actions to mitigate this issue, including restricting chronic and repeated use of credit cards, contacting customers who frequently placed large numbers of orders to ensure they were using the coins for legitimate business purchases, and other measures. While these measures eliminated a significant amount of misuse in the program, we believe some abuse still exists. Eliminating the credit and debit card purchase of the $1 coin is the next step in our efforts to root out abuse in this program and ensure it is better targeted toward fulfilling its intended purpose–which is to get the $1 Coin into greater circulation.

Thank you for your understanding and your continued support of the $1 coin program.

The United States Mint
http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?langId=-1&storeId=10001&catalogId=10001&identifier=8100
22 July 2011/12 pm"

Was nice while it lasted.

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Pete838
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Postby Pete838 » Sat Jul 23, 2011 8:58 am

Camelback wrote:Sorry, think again. Per usmint.gov:

22 July 2011/12 pm"

Was nice while it lasted.


Yes it was. Between the FF rewards and Bigcrumbs affiliate checks I took a couple of trips last year at very little cost to me. Face it, those dollar coins were a boondoggle from the start, and nobody wants them.
Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.
Ronald Reagan

portoon
 
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Postby portoon » Sat Jul 23, 2011 1:26 pm

Oh wow I wish I would have known about this trick while it was still available. Did the banks ever give you a hard time when you tried to return the dollar coins in big quantities?

SomeGuyNamedJR
 
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Postby SomeGuyNamedJR » Sat Jul 23, 2011 4:11 pm

I considered doing this a while back but decided against it because it wasn't the intent of the program. I'm not judging those who did take advantage of it, just my conscious would have gotten the better of me (even though technically this was 100% legal).

john
 
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Postby john » Wed Aug 31, 2011 12:32 pm

Does anyone know of any similar schemes to earn "free" rewards points? And I use "scheme" for lack of a better term meaning legal but possibly frowned upon.

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Pete838
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Postby Pete838 » Thu Sep 15, 2011 10:58 pm

Many telephone, electric, cell, and other utilities now accept CC payments. Try to pay as many of your expenses as possible with your rewards card. Just paying the expenses I listed nets me several hundred points a month that would otherwise just be paid from a checking account.
If you regularly make purchases or travel for work it may be possible to run the charges through your personal account and be reimbursed rather than use a company charge account. Just keep good records and know your company's reimbursement cycle.
Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.
Ronald Reagan



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