62 votes
Accepted

How does the math work when buying airline miles?

Your experience might vary depending on the mileage program, but in most cases, buying extra miles is a waste of money. Some legitimate uses: If you are close to a redemption value you want, there's ...
Earth's user avatar
  • 1,379
61 votes

Did I discover an easy way to make money via PayPal and cashback credit card? If so, is it legal and is the money taxable?

Update (2022): It may be possible to earn double cash back for new accounts in the first year. I cannot find anything in the terms or conditions that would exclude this. If that's the case and you ...
TTT's user avatar
  • 47.2k
48 votes

Gigantic point amount on rewards card - what are potential consequences?

I can't give you proper legal advice, but if I called their customer service and used half an hour of my time to wait and explain the situation in detail, and their official response was "just use the ...
Falco's user avatar
  • 625
38 votes

Gigantic point amount on rewards card - what are potential consequences?

I would behave exactly as I would expect it from others. If you were the one giving away too many points by accident you would be thankful if somebody notifies you about this error. You can write a ...
Freddy's user avatar
  • 803
34 votes

Earn CC flight miles by paying rent?

If I were to pay for a month's worth of rent with this card, does that mean I will accrue 4,000 miles? It sounds like it, yes. That's enough miles to cover more than half the country (United States)....
nobody's user avatar
  • 1,880
25 votes

How does the math work when buying airline miles?

The most practical (though not necessarily cost effective) reason for buying miles is to reset your mileage expiry date. Most programs have some some of expiry built into them so that if you don't ...
RobV's user avatar
  • 410
23 votes

Is it safe for me to give my checking account's routing and account numbers to a credit card company?

You give those numbers to people every time you give them a check. So you are at no more risk than if you had written them a check. And if they're giving you a refund electronically, they need those ...
keshlam's user avatar
  • 46.5k
21 votes

(Theoretical) Paying credit cards with other credit cards

If you had a CC issuer that allowed you to do bill-pay this way, I suspect the payment would be considered a cash advance that will trigger a fee and a pretty egregious cash advance specific interest ...
quid's user avatar
  • 49k
19 votes

How does the math work when buying airline miles?

It makes a lot of sense for the airlines, obviously. If you are very near to a free flight, it might make sense to buy a small amount, but generally, it is a very bad deal for the buyer. Not everyone ...
Aganju's user avatar
  • 37.7k
19 votes

Gigantic point amount on rewards card - what are potential consequences?

If you want to maximize your expected benefits, at minimal risk of financial repercussions or sleepless nights, I would suggest the following. Send an email explaining the situation, and announce ...
Dennis's user avatar
  • 191
16 votes
Accepted

Why does Discover Card warn me about selecting certain payment due dates?

No, there's no reason to worry. I called Discover's customer service line about this and got a great explanation from Alex in Salt Lake City. To paraphrase/summarize: The website shows that ...
dgw's user avatar
  • 391
11 votes

(Theoretical) Paying credit cards with other credit cards

Three things prevent you from doing this: Credit cards generally don't accept other credit cards as payment. You could do this with a cash advance or balance transfer, but Cash advances and balance ...
Ben Miller's user avatar
  • 116k
11 votes

Can you buy gift cards at grocery store to receive a higher reward rate?

In a similar situation I wrote about How I Made $4,000+ on a Cash Back Credit Card Offer. The total was actually $4550, and was from an insane offer from a new credit card my bank advertised. 10% cash ...
JTP - Apologise to Monica's user avatar
11 votes
Accepted

Can you buy gift cards at grocery store to receive a higher reward rate?

If you go to a grocery store and purchase retail gift cards along with other products, and you pay with a credit card, your credit card company generally does not know what you spent the money on; ...
Ben Miller's user avatar
  • 116k
11 votes

Did I discover an easy way to make money via PayPal and cashback credit card? If so, is it legal and is the money taxable?

Many years ago some US bank gave you air miles for cash withdrawals, and a couple took out all their savings in cash, paid it back in, drew it all out again and repeat. They managed to withdraw about ...
gnasher729's user avatar
10 votes

Did I discover an easy way to make money via PayPal and cashback credit card? If so, is it legal and is the money taxable?

Yes, and it falls into the same category as banks paying you money to open a checking account with them. Businesses call this "customer acquisition costs" and they work pretty hard to ...
Harper - Reinstate Monica's user avatar
8 votes

Gigantic point amount on rewards card - what are potential consequences?

Of course, as a 'good' person (or maybe a 'stupid' person), I should call them, (wait 30 minutes in the queue), and then try to explain the issue to the service desk. I actually did that, and the guy ...
Dheer's user avatar
  • 57.1k
7 votes
Accepted

How to enter credit card "statement credits" (e.g. cash back) in double entry accounting?

Per IRS Private Letter Ruling 141607-09 : "The portion of the credit card purchases that Taxpayers can either receive back in cash or request Company to pay to a charity does not constitute gross ...
A.K.'s user avatar
  • 328
7 votes

How do consumer reward point systems work?

Or is it just a marketing strategy to attract more customers? Attracting new customers is not the main goal. Keeping frequent customers and getting them to be more frequent (spend more) is the goal. ...
Mattman944's user avatar
  • 1,718
7 votes
Accepted

Does credit card cash back count taxes?

Generally, you will get cash back for the entire amount (so $1.06 in your case). The credit card issuer usually doesn't event know the tax amount, since it is charged as a single transaction.
Nosjack's user avatar
  • 8,697
7 votes
Accepted

If a credit card offers rewards for "online purchases", is anything paid for online automatically included?

The Bank of America category is actually "online shopping", which is a little less broad than "online purchases" in my experience. The details are listed here. In general I have ...
Craig W's user avatar
  • 15.9k
6 votes

Gigantic point amount on rewards card - what are potential consequences?

An ideal option for you would be to use as many or as few as you choose, but have all of them available to you. The service desk guy told you you can do exactly that. Problem, though: you have no ...
kaay's user avatar
  • 161
6 votes

Is it safe for me to give my checking account's routing and account numbers to a credit card company?

If you are logging onto your bank website and transferring money to the credit card company each month to pay your bill, they have some of your banking information. The money could be sent ...
mhoran_psprep's user avatar
5 votes

Is credit card signup bonus taxable?

No. If the reward is contingent on spending, then it is not considered taxable income. This is true of cash-back, points, and sign-up bonuses that are based on spending (Spend $x in first x months). ...
Hart CO's user avatar
  • 70.5k
5 votes

how far can one push the signup bonus game?

This is commonly called churning, and it can be lucrative but it is some work. There's gobs of information here: Churning - Reddit and many other resources as well. If you get into it, just be ...
Hart CO's user avatar
  • 70.5k
5 votes
Accepted

How do consumer reward point systems work?

Coffee beans are apparently about 18 cents per cup, or about $2 to $5 at Starbucks. Let's use 20c and $2.20 for ease of calculation, ignoring other costs (or amortize them into the rounding). Suppose ...
Lawrence's user avatar
  • 9,362
5 votes

Why use credit card rewards for vendor credit not cash?

But it seems to me that I have never seen the rate be different than 1 to 1. Then you haven't been looking at very many cards. If I check the Discover card website, I see can get a $100 certificate ...
mhoran_psprep's user avatar
5 votes
Accepted

Sending money to friends via Amex with PayPal UK

You can transfer money to friends and family this way, and Paypal don't charge any additional fees, but Amex treat this as a "cash advance" and hence charge higher fees / interest on it and ...
Vicky's user avatar
  • 24k
5 votes

Earn CC flight miles by paying rent?

Whenever you use a credit card, the merchant pays 2% to 4% to the credit card system as merchant fees*. The amount depends on their contract with their bank, but it often varies by reward card type. ...
Harper - Reinstate Monica's user avatar

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