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  • Nov 16th, 2017 11:19 pm
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[OP]
Deal Fanatic
Sep 21, 2004
8569 posts
1388 upvotes

Manufactured spending

http://www.cbc.ca/beta/news/business/ae ... -1.4390911

Ok. Which one of you is this?

Rule 1) you do not talk about manufactured spending.
Rule 2) you do not talk about manufactured spending.

But man, talk about abusing a program!
27 replies
Deal Expert
User avatar
Nov 15, 2004
20077 posts
3952 upvotes
Toronto
How is this a problem? They're still collecting their merchant fees on every transaction. Their rewards programs are working as intended.
Deal Fanatic
Jul 5, 2005
8513 posts
252 upvotes
Piro21 wrote: How is this a problem? They're still collecting their merchant fees on every transaction. Their rewards programs are working as intended.
The only person who loses is the tax payer.
Deal Expert
User avatar
Nov 15, 2004
20077 posts
3952 upvotes
Toronto
hugh_da_man wrote: The only person who loses is the tax payer.
But they'd lose anyway if those coins were bought by people who actually wanted to collect them instead of using them as currency. The government factored that in when they decided to allow them to be bought by credit card transactions.
[OP]
Deal Fanatic
Sep 21, 2004
8569 posts
1388 upvotes
Piro21 wrote: But they'd lose anyway if those coins were bought by people who actually wanted to collect them instead of using them as currency. The government factored that in when they decided to allow them to be bought by credit card transactions.
No, because the government would've actually sold the coins. Now they've paid the fees and got stuck back with the original product.
Deal Fanatic
Jul 5, 2005
8513 posts
252 upvotes
Piro21 wrote: But they'd lose anyway if those coins were bought by people who actually wanted to collect them instead of using them as currency. The government factored that in when they decided to allow them to be bought by credit card transactions.
No they wouldn't. The minting of the coin costs less than the face value. People buying to collect would have resulted in profit. Buying and redeeming made it so that the mint incurred credit fees, shipping fees, and fees paid to the bank for returning them.
Deal Expert
User avatar
Nov 15, 2004
20077 posts
3952 upvotes
Toronto
Stock R wrote: No, because the government would've actually sold the coins. Now they've paid the fees and got stuck back with the original product.
But they allowed for that to happen by selling them at face value. This is the government agency in charge of the country's money, selling a product that's literally a combination of precious metals and money to the type of people that are interested in speculating on both to make profit. They knew exactly what would happen by choosing to do what they did.
Deal Expert
Feb 24, 2007
15087 posts
2678 upvotes
An young budding entrepreneur..good for him.
Deal Expert
Feb 24, 2007
15087 posts
2678 upvotes
hugh_da_man wrote: The only person who loses is the tax payer.
Fifteen of the largest Canadian corporations keep more than $15.1B in taxes by stashing the money in the tax havens. Should the taxpayer be miffed with that?
Deal Addict
Apr 22, 2014
3097 posts
472 upvotes
Oshawa, ON
moron should have hung on to the coins and sold them on ebay, not return for face value.
anyway, this was no secret, myself and my colleagues milked this one hard when it started. i used cashback cards to buy. some took it further than others. this guy was lucky to have proximity to a mint store. I think I may have even learned about it on RFD. definitely worth a student's time.
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Deal Fanatic
Nov 24, 2013
6241 posts
2987 upvotes
Kingston, ON
eldeejay wrote: moron should have hung on to the coins and sold them on ebay, not return for face value.
anyway, this was no secret, myself and my colleagues milked this one hard when it started. i used cashback cards to buy. some took it further than others. this guy was lucky to have proximity to a mint store. I think I may have even learned about it on RFD. definitely worth a student's time.
I doubt there's enough suckers on eBay to buy a 1/4 oz silver coin for $20 after eBay/PayPal fees. Or are there? The metal's only worth a quarter of that, and the mintages were hundreds of thousands.
Deal Addict
Apr 22, 2014
3097 posts
472 upvotes
Oshawa, ON
Mike15 wrote: I doubt there's enough suckers on eBay to buy a 1/4 oz silver coin for $20 after eBay/PayPal fees. Or are there? The metal's only worth a quarter of that, and the mintages were hundreds of thousands.
search it. they sell. and the older ones have higher premiums (and lower mintages). sad but true.
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Deal Addict
Feb 18, 2016
1808 posts
528 upvotes
... more importantly, can it still be done?
Deal Guru
User avatar
Mar 23, 2008
13002 posts
9929 upvotes
Edmonton
notfromqc wrote: ... more importantly, can it still be done?
The article said they've been cracking down to enforce their limits, so it would be more difficult. But at the end of the article, he says he knows another program ripe for the picking...

C
Deal Guru
Jul 19, 2012
14713 posts
4833 upvotes
Montreal
this is hardly a smart or innovative way to create CC points, and there are tons of ways to launder credit card purchases, it just comes down to whether you're unethical enough to drag your soul through the muck and then come out the other side.

The guy in the story is a lawyer, so he definitely qualifies.
My last and final digital game I purchased at PSN from those Sony Devils was on November 22, 2020 - Ban that Sorny!
Deal Addict
Jan 12, 2017
2616 posts
2937 upvotes
JackWhyte wrote: this is hardly a smart or innovative way to create CC points, and there are tons of ways to launder credit card purchases, it just comes down to whether you're unethical enough to drag your soul through the muck and then come out the other side.

The guy in the story is a lawyer, so he definitely qualifies.
Please enlighten us.
What can you buy with CC and get equal value back in cash?
Deal Guru
Jul 19, 2012
14713 posts
4833 upvotes
Montreal
Dreamrider wrote: Please enlighten us.
What can you buy with CC and get equal value back in cash?
Seriously? What rock did you just roll out of.

Here's a low-hanging fruit, and far from the most lucrative, but just another cog in the CC scamming machine: bonus points offers on gift cards, pre-paid cards or other cash equivalents you shop at every day/week anyway. sometimes you can even pay off your CC bill with them, and the points increase can be 10-20-30% depending on the deal.

buying coins in bulk at the mint is obviously the simplest method, as any monkey could do that with enough free time and effort, but my point is that this crap has been going on for years and it's hardly anything innovative. Smiling Face With Open Mouth And Smiling Eyes
My last and final digital game I purchased at PSN from those Sony Devils was on November 22, 2020 - Ban that Sorny!
Deal Guru
Oct 3, 2006
10467 posts
786 upvotes
Toronto
notfromqc wrote: ... more importantly, can it still be done?
Article said the Mint stopped selling coins at face value since earlier this year. So probably no.
Deal Addict
Jan 12, 2017
2616 posts
2937 upvotes
JackWhyte wrote: Seriously? What rock did you just roll out of.

Here's a low-hanging fruit, and far from the most lucrative, but just another cog in the CC scamming machine: bonus points offers on gift cards, pre-paid cards or other cash equivalents you shop at every day/week anyway. sometimes you can even pay off your CC bill with them, and the points increase can be 10-20-30% depending on the deal.

buying coins in bulk at the mint is obviously the simplest method, as any monkey could do that with enough free time and effort, but my point is that this crap has been going on for years and it's hardly anything innovative. Smiling Face With Open Mouth And Smiling Eyes
He bought cash with cc
He went to mint, bought thousands coins with cc, went bank next door and paid off his cc right away with coins he just bought. He walked away with free cc reward points.
This is same as buying thousands of $ worth giftcard with cc? You still have to pay off your cc with cash first before incurring huge interest, and Your money is tied up until you use up all your giftcard balance.
Why aren't ppl cleaning out gc shelves with their cc?
Which CC company takes GC as payment?

Again let us know where we can buy cash with cc, not giftcards.

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