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cmeisenzahl · Dec 7, 2009, 10:06 AM

Oops. ;-)

U.S. Helps Frequent Fliers Make a Mint - WSJ.com
Free Shipping of Coins, Put on Credit Cards, Funds Trip to Tahiti; 'Mr. Pickles' Cleans Up
"Enthusiasts of frequent-flier mileage have all kinds of crazy strategies for racking up credits, but few have been as quick and easy as turning coins into miles. At least several hundred mile-junkies discovered that a free shipping offer on presidential and Native American $1 coins, sold at face value by the U.S. Mint, amounted to printing free frequent-flier miles. Mileage lovers ordered more than $1 million in coins until the Mint started identifying them and cutting them off. Coin buyers charged the purchases, sold in boxes of 250 coins, to a credit card that offers frequent-flier mile awards, then took the shipments straight to the bank. They then used the coins they deposited to pay their credit-card bills. Their only cost: the car trip to make the deposit."
U.S. Helps Frequent Fliers Make a Mint - WSJ.com

Oisín · Dec 7, 2009, 10:35 AM

Brilliantly simple; simply brilliant.

iMOTOR · Dec 7, 2009, 10:59 AM

Wouldn’t it be embarrassing to haul that much money into the bank? It seems like the bank would be suspicious of people depositing ten thousand in one dollar coins.

Oisín · Dec 7, 2009, 11:48 AM

Originally Posted by iMOTOR

Wouldn’t it be embarrassing to haul that much money into the bank? It seems like the bank would be suspicious of people depositing ten thousand in one dollar coins.

I’d imagine they probably did it in smaller turns, making it look like they were just depositing six months’ worth of accumulated coins or something. People regularly deposit several hundred dollars that way (here, at least).

turtle777 · Dec 7, 2009, 12:08 PM

Darn it. I can't believe I missed this scheme.

-t

Oneota · Dec 7, 2009, 12:19 PM

Originally Posted by turtle777

Darn it. I can't believe I missed this scheme.

-t

From reading the article, it sounds like it's still on-going, since nothing they're doing is illegal.

turtle777 · Dec 7, 2009, 12:24 PM

Originally Posted by Oneota

From reading the article, it sounds like it's still on-going, since nothing they're doing is illegal.

Really ?

Mileage lovers ordered more than $1 million in coins until the Mint started identifying them and cutting them off.

-t

MacinTommy · Dec 7, 2009, 02:00 PM

Originally Posted by iMOTOR

Wouldn’t it be embarrassing to haul that much money into the bank? It seems like the bank would be suspicious of people depositing ten thousand in one dollar coins.

Trust me... I work at a bank and bringing in coin like that is nothing. A person brought a wheel barrow of pennies in before.

Uncle Skeleton · Dec 7, 2009, 03:04 PM

Just cross your fingers that your box of 500 dollar-coins doesn't get lost or stolen after/before/during the mailman leaving it at your front door...

mduell · Dec 7, 2009, 08:53 PM

I bought a few grand to satisfy a credit card spending minimum.

Oneota · Dec 8, 2009, 09:37 AM

Originally Posted by turtle777

Really ?

-t

Well, then there's this:

The Mint has added a warning to its Web site that credit-card companies could consider the purchases cash-equivalent transactions not eligible for miles, and Mint officials plan to contact credit-card issuers "to try to implement a solution," he says.

Mileage fanatics say merchants and hotel programs can be an excellent way to supplement frequent-flier accounts.

So they're still trying to implement a solution. The solution for people who want to take advantage of this, it seems, is to not be so obvious and over-the-top about it.

finboy · Dec 8, 2009, 01:08 PM

Originally Posted by Oneota

Well, then there's this:

So they're still trying to implement a solution. The solution for people who want to take advantage of this, it seems, is to not be so obvious and over-the-top about it.

In economics, that's what we call an "arbitrage opportunity" or "money pump." A no brainer as long as everyone doesn't take advantage of it.

JoshuaZ · Dec 9, 2009, 11:36 PM

I was reading up on this in a frequent flier forum. The 'loophole' the mint closed was that now instead of being able to order 99 boxes of coins you can now only buy two at a time. Though people are still taking advantage of this buy ordering two boxes of each type of presidential coin.

It also seems as if you can still order 99 boxes of Native American $1 coins.

If I was in the US right now I'd be doing this every week.

shifuimam · Dec 10, 2009, 04:43 PM

Good idea, but I agree with credit card companies treating these like cash-equivalent transactions - much the same way that gift cards at stores are never eligible for coupons and other discounts. You're trading cash for cash.

Also: free shipping, too? That's crazy - coins are freakin' heavy.

The Final Dakar · Dec 10, 2009, 04:45 PM

"Excuse me, I'd like to buy some money..."

lexapro · Dec 10, 2009, 05:50 PM

I know someone who did this. He bought the coins with his American Express cards that was attached to his frequent flyer account.

The Amex has zero liability coverage and they have indicated they would even cover in cases of shipping errors/theft.

Seems like the surest way to go. Get the points and no liability.