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My Mastercard gives me 1% cash back. I can set up a paypal account against my master card. Now what is the catch in this scheme?
1.Transfer 1000 dollars from mastercard to paypal( this does not cause any transaction fees) 2.Collect the 1% cash back = 10.
3.Change settings to set up paypal against a bank account (no charge)
3. Transfer the money back into the chequing account (no charge)

Essentially a 10$ riskless profit that can be repeated.

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    I'm abstaining from any votes. But I'll say, this doesn't strike me as personal finance, but rather "gaming the system." – JTP - Apologise to Monica Oct 8 '14 at 18:48
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Although there are no transaction fees from PayPal, your bank should treat this as a cash advance rather than a payment and so will charge you fees. The cash advance fee will be larger than 1%, so you'll definitely lose money. Plus you'll start paying interest immediately (unlike for purchases). PayPal warns that you'll get cash advance fees here.

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    Not only do cash advance transactions incur fees to the cardholder, they are often not eligible for cashback rewards, so you lose two or three times. – Nate Eldredge Oct 8 '14 at 19:09
  • Also, loading and unloading in quick succession will probably get PayPal to shut down your account. – Noah Snyder Oct 9 '14 at 14:32
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One way you can accomplish this is on a cruise ship. Most cruise ships have casinos, and most will allow you to sign out chips at the casino cage. You can then exchange the chips for cash.

The chips that were signed for are resolved as room charges. Those room charges can be charged to a CC. Those signed for chips are rolled into the total room charges and are thus not treated as a cash advance.

The cost of the cruise not with standing, you could earn money in that form. Step off the boat, deposit cash in the bank, and send a check to the CC company.

All that being said, it is an cheap and safe way to get cash while you are traveling in that method.

  • That's a cool idea. – Victor123 Oct 10 '14 at 14:49
  • Have you personally tried this? Given that the cruise ship company loses money when you do this (they pay a merchant fee on the charge to your credit card), I'd expect them to stop this. For example, they might impose a surcharge when you sign for chips instead of paying with cash. – Nate Eldredge Mar 31 '15 at 0:57
  • I have done exactly what I said many times. In the long run, they lose very little money as they want to give travelers every chance to gamble. – Pete B. Jul 27 '16 at 15:14

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