Self-charging for miles
Jul 25, 2016, 12:05 am
#1
Original Poster
Join Date: Jul 2016
Posts: 4
Self-charging for miles
Hey guys, new to churning and I have a somewhat newbie question about miles and airline card offers. I recently signed up for a Delta biz card for my small business, and was wondering if it would be possible to run the 2k min spend through a processor like Stripe/Paypal instead of "traditional" spending. The way I look at it is that we have a small amount of CC spend, and it seems like an easier option to pay the $90 or so Stripe fee to save the time about worrying where to put spend on this card.
Thanks in advance for the help.
Thanks in advance for the help.
Jul 25, 2016, 4:20 am
#2
Join Date: Apr 2015
Posts: 489
Don't do that. They will close your square/stripe account and you will be blacklisted. Though I have always wondered what would happen if you bout $2000 of visa gift cards and swiped those into square/stripe. There is no name on the card so they might not find out, but that might be considered money laundering and could get your account closed (not 100% sure on that). If I were you, just spend what you can and hope it makes it to the $2000 mark. I wouldn't risk getting your credit and square accounts closed for that.
Jul 25, 2016, 12:48 pm
#4
FlyerTalk Evangelist
Join Date: Aug 2009
Location: ZOA, SFO, HKG
Programs: UA 1K 0.9MM, Marriott Gold, HHonors Gold, Hertz PC, SBux Gold, TSA Pre✓
Posts: 13,811
Although I will not comment on the method, I will address the following:
It is not money laundering at all.
To meet the definition of money laundering, the money in question must be illegal proceeds. Due to tightened reporting and compliance requirement, many simply don't want to deal with this and consider this a high-risk activity.
Though I have always wondered what would happen if you bout $2000 of visa gift cards and swiped those into square/stripe. There is no name on the card so they might not find out, but that might be considered money laundering and could get your account closed (not 100% sure on that).
To meet the definition of money laundering, the money in question must be illegal proceeds. Due to tightened reporting and compliance requirement, many simply don't want to deal with this and consider this a high-risk activity.
Jul 25, 2016, 1:34 pm
#5
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
Well, if you are doing it to meet a "spend" requirement, it is wire fraud and therefore money laundering and even though nobody gets prosecuted for this petty stuff, the compliance people just shut it down rather than bothering with it.
Jul 25, 2016, 4:58 pm
#6
FlyerTalk Evangelist
Join Date: Aug 2009
Location: ZOA, SFO, HKG
Programs: UA 1K 0.9MM, Marriott Gold, HHonors Gold, Hertz PC, SBux Gold, TSA Pre✓
Posts: 13,811
How does this exactly become a wire fraud and money laundering?
Jul 25, 2016, 8:08 pm
#8
Join Date: Jul 2012
Location: RDU
Programs: DL(PM), UA(Silver), AA(EXP) Marriott(Ti), HH(Gold), Hertz(PC)
Posts: 2,667
How is swiping your own card on your register/square/etc money laundering?
And, how is it wire fraud?
