[EXPIRED] Buy Traveler's Checks with AMEX cc
May 24, 2007, 4:08 pm
#31
Join Date: Dec 2005
Location: Austin
Programs: CO-Plat, DL-Gold
Posts: 518
schmare - perhaps the problem was that you immediately cashed the checks. I wonder if the same thing would happen if you cashed them more gradually. That is what I am trying. I have some old travelers checks that I collected and I am cashing them and depositing them first. I haven't done it all at once for fear it would get reported somehow. We'll see if I get a letter if I haven't cashed any of the checks I've gottn in the last month. Also if they were all cashed "at home." I am sure that they can track all of this. As far as they know, I am saving for a major trip.
Re-depositing the checks slowly may help, but eventually you'll need to deposit everything back into your account. I guess it depends whether it was the weekly purchase of the travelers checks causes suspicion, or whether suspicion arises when the same batch of travelers checks are all cashed together.
Hmmm....wondering if I should give it another (more subtle) go ....
May 24, 2007, 4:25 pm
#32
Join Date: Jan 2007
Location: QSF
Programs: UA GS 1.1MM | Marriott Lifetime Titanium | National EE
Posts: 621
Since these are treated as purchases but deducted from your cash advance limit (info from OP), would these purchases count towards the Delta AMEX mqm thresholds?
May 24, 2007, 5:39 pm
#33
Moderator: Mileage Run, InterContinental Hotels
Join Date: May 2004
Posts: 5,912
Re-depositing the checks slowly may help, but eventually you'll need to deposit everything back into your account. I guess it depends whether it was the weekly purchase of the travelers checks causes suspicion, or whether suspicion arises when the same batch of travelers checks are all cashed together.
Hmmm....wondering if I should give it another (more subtle) go ....
Hmmm....wondering if I should give it another (more subtle) go ....
May 24, 2007, 6:07 pm
#34
Join Date: Jan 2006
Location: SEA
Posts: 398
What kinds of reporting requirements are those / for what thresholds? I would imagine that people / travellers deposit unused TCs upon returning home all the time since most I know that do bother getting them do so "just in case." Merchants certainly deposit these all the time. I think we ran through this same discussion in the GC thread and nothing ever came of it. I don't see what is remotely illegal about it or how it could be money laundering, so please let me know. Getting a TC is just acquiring a cash instrument with one's own money (/line of credit). You're redepositing it into your own account. There's no tax evasion or attempt to or benefit from "concealing the source of the funds." How would it be any different than the fact that I constantly withdraw cash, change it into foreign currency, and redeposit when I get back from a trip. I think that Amex might get pissy over the terms/spirit of the thing, but I don't understand how it could be money laundering and would like to be enlightened before I embark on anything. Thanks.
I came across this Amex TC opportunity when I was looking for the next best thing after the Gift Card churning came to an end about a year or so ago. At the time it seemed like too much of a pain, but now that I'm in Manhattan where there are 8-12 Amex corporate centers I could do this, I'm definitely considering it.
Anyone who's done it low key for a while, I'd appreciate any tips.
peace,
~Ben~
I came across this Amex TC opportunity when I was looking for the next best thing after the Gift Card churning came to an end about a year or so ago. At the time it seemed like too much of a pain, but now that I'm in Manhattan where there are 8-12 Amex corporate centers I could do this, I'm definitely considering it.
Anyone who's done it low key for a while, I'd appreciate any tips.
peace,
~Ben~
Now who gets to see this report? I don't know, but I can bet at least IRS is on that list and I certainly don't want to have a date with IRS.
May 24, 2007, 6:10 pm
#35
Join Date: Aug 2004
Programs: HHonors Diamond, SPG Gold
Posts: 135
how can you find if theres an amex travel center near you?
May 24, 2007, 6:44 pm
#36
Join Date: Aug 2001
Location: Reno, Nevada
Posts: 7,368
Of all places, at the American Express website (under the "Locate a travel service office" link):
https://www134.americanexpress.com/c...avel/travel.do
Mike
https://www134.americanexpress.com/c...avel/travel.do
Mike
May 24, 2007, 7:05 pm
#37
Join Date: Dec 2005
Location: Austin
Programs: CO-Plat, DL-Gold
Posts: 518
In the eyes of banks, TC is the same as cash since it's origin can not be traced/verified. I believe federal laws says that if someone deposited a aggregated total of > $10,000 in cash in a year, the bank has to report it. Remember that the act of deposit large amounts of cash is legal, same as transporting that cash in or out of the country, as long as it's been reported.
Now who gets to see this report? I don't know, but I can bet at least IRS is on that list and I certainly don't want to have a date with IRS.
Now who gets to see this report? I don't know, but I can bet at least IRS is on that list and I certainly don't want to have a date with IRS.
If you were to deposit large sums of money frequently, the bank may choose to file a SAR (Suspicious Activity Report), which is a much bigger deal.
May 24, 2007, 7:56 pm
#38
Join Date: May 2004
Location: LAX
Programs: CO Platinum HHonors Diamond Avis President's Club
Posts: 2,312
Actually, the bank needs to report cash deposits if it's more than $10,000 in a day. The report is called a CTR (currency transaction report). As you noted, depositing large amounts of cash is legal, so this shouldn't cause problems or give reason for suspicion.
If you were to deposit large sums of money frequently, the bank may choose to file a SAR (Suspicious Activity Report), which is a much bigger deal.
If you were to deposit large sums of money frequently, the bank may choose to file a SAR (Suspicious Activity Report), which is a much bigger deal.
Also, if I bank with BoA or Chase and do the deposits at different branches, would that decrease the liklihood? I mean, rather than a human flagging it for a SAR, the systems would have to flag the pattern, right? Seems a lot less likely to me for those kinds of amounts ($12k-$24k / year). Especially if they show as cash deposits as someone else mentioned. A lot of workers deposit their cash pay that way in similar amounts with similar frequency.
peace,
~Ben~
Last edited by seoulmanjr; May 24, 2007 at 8:51 pm
May 24, 2007, 8:07 pm
#39
FlyerTalk Evangelist
Join Date: Dec 2003
Location: Not here; there!
Programs: AA Lifetime Gold
Posts: 29,564
Wirelessly posted (BlackBerry7130e/4.1.0 Profile/MIDP-2.0 Configuration/CLDC-1.1 VendorID/104)
In the Spring of 2004, while on vacation in South Florida, I went to an Amex Travel Services office, and attempted to purchase traveler's checks with my Hilton HHonors Amex card. The office refused to let me purchase the checks with my card, explaining that only Amex CHARGE cards (not CREDIT cards) could be used to purchase traveler's checks. I called customer service from the Amex office, and they confirmed that the local office was correct.
Has the policy changed? Has anyone here used an Amex credit card (like Hilton HHonors Amex or SPG Amex) to purchase traveler's checks?
In the Spring of 2004, while on vacation in South Florida, I went to an Amex Travel Services office, and attempted to purchase traveler's checks with my Hilton HHonors Amex card. The office refused to let me purchase the checks with my card, explaining that only Amex CHARGE cards (not CREDIT cards) could be used to purchase traveler's checks. I called customer service from the Amex office, and they confirmed that the local office was correct.
Has the policy changed? Has anyone here used an Amex credit card (like Hilton HHonors Amex or SPG Amex) to purchase traveler's checks?
May 24, 2007, 9:08 pm
#40
Join Date: Dec 2005
Location: Austin
Programs: CO-Plat, DL-Gold
Posts: 518
To be honest, my experience with this is very limited, so I could be incorrect!
May 24, 2007, 10:00 pm
#41
FlyerTalk Evangelist
Join Date: Dec 2002
Location: Danville, CA, USA;
Programs: UA 1MM, WN CP, Marriott LT Plat, Hilton Gold, IC Plat
Posts: 15,719
Neither SARs nor CTRs will present a problem for anyone who is doing transactions that are 100% legal - as is the case here. They only become a problem if you are a drug dealer, money laundering for a criminal enterprise, or evading income taxes.
Charging travelers cheques to get miles doesn't break any laws.
I don't think Amex will close this loophole because they make boatloads of interest from all the people who charge their cheques and then sit on them for weeks or months. Then again, if enough FTers do it ...
Charging travelers cheques to get miles doesn't break any laws.
I don't think Amex will close this loophole because they make boatloads of interest from all the people who charge their cheques and then sit on them for weeks or months. Then again, if enough FTers do it ...
May 24, 2007, 10:49 pm
#42
Join Date: Feb 2006
Location: DC Metro (WAS--DCA/IAD/BWI)
Programs: AA Plat 2MM, OW Sapphire, QF Bronze, Marriott Silver, Starwood Gold; National Emerald
Posts: 2,533
They also tag you with a $15 per transaction (which means per $1000 limit mentioned here), so they are getting "something" even for an overnight out/in mentioned above.
Steve
Steve
May 24, 2007, 11:22 pm
#43
Original Poster
Join Date: Apr 1999
Location: Oak Park, IL
Programs: AA 2 MM LIfetime Platinum, SPG Platinum, Hilton Silver, BA
Posts: 3,585
There are no fees involved with this transaction. I have used my SPG card and my Hilton card. I think as long as there are charges on your credit card, you have a very good way of explaining the deposits of travelers checks. I would spread out the deposits to different accounts, and also use them to pay your other credit card bills if you can. I bank at citibank, so I have begun to pay my bills at the teller with some previous traveler's checks that I had gathered for trips but were never used. If everyone who deposited $10,000 in a year were investigiated, this country would be in big trouble. I agree, I think it is in one day.
I don't think AMEX makes a big distinction any more between Charge cards or credit cards. Am I wrong about that?
I don't think AMEX makes a big distinction any more between Charge cards or credit cards. Am I wrong about that?
May 24, 2007, 11:42 pm
#44
FlyerTalk Evangelist
Join Date: May 2000
Location: أمريكا
Posts: 26,763
Only if people are keeping the checks well after already paying their AmEx bill. AmEx might have to wait 60 days between the time a TC is purchased and the time it gets the cash for it. If the TC is cashed anytime before, AmEx is losing interest (giving you a free loan) and had to pay the transaction costs to boot.
May 24, 2007, 11:44 pm
#45
Join Date: Jan 2006
Location: SEA
Posts: 398
Neither SARs nor CTRs will present a problem for anyone who is doing transactions that are 100% legal - as is the case here. They only become a problem if you are a drug dealer, money laundering for a criminal enterprise, or evading income taxes.
Charging travelers cheques to get miles doesn't break any laws.
I don't think Amex will close this loophole because they make boatloads of interest from all the people who charge their cheques and then sit on them for weeks or months. Then again, if enough FTers do it ...
Charging travelers cheques to get miles doesn't break any laws.
I don't think Amex will close this loophole because they make boatloads of interest from all the people who charge their cheques and then sit on them for weeks or months. Then again, if enough FTers do it ...