Go Back   FlyerTalk Forums > Miles&Points > MilesBuzz
Sign in using an external account

Reply
 
Thread Tools Search this Thread
Old Apr 1, 12, 7:35 am   #1
 
Join Date: Apr 2012
Location: MKE
Programs: SPG Plat, Hilton Gold, Club Carlson Gold, Priority Club Gold, AA Plat,
Posts: 594
Netspend Reloadable Card

I am new and have been obsessing about miles, cash back, ect. I recently went to a gas station and bought a gas/merchandise card with my discover card. As it is there 5% cash back period for gas, I recieved 5% cash back for my $500 dollar gift card as it listed in the gas catagory.

I didn't see much info on Netspend but it seems to me like someone could purchase a net spend card at a gas station ( code for gas = earn 5%) and then simply use it to get cash from an atm (one of their options), put cash in your Bank account and pay off your cc. It's money laundering, but so is the mint trick. Again I have been obsessing about this. Seems like you can reload these thing at most places, walgreens, kmart, grocery stores, gas stations. You can take advantage of these category based rewards too.

I am a student and love deals but cant imagine a way to reach the bonuses on a cc when you have to spen 5000 in 6 months to get 10,000 miles.
phdtomd is offline   Reply With Quote
Old Apr 1, 12, 8:07 am   #2
 
Join Date: Dec 2010
Location: JAN
Posts: 131
If I have done the math right:

$3.95 to load the card at a gas station, up to $500 per transaction (https://www.netspend.com/account/dis...leValueWithPin)
$2.50 per ATM withdrawl (plus ATM owner fee, if any) (https://www.netspend.com/help/freque...uestions.shtml)
restriction of $325 per withdrawl and $940/day

If we give this a go with $1300, that means $21.85 in fees for 6500 miles or $0.0034 per mile. Sounds like you were using Discover, though - I believe that bonus category ended yesterday, and was capped at $1500 spend. Is there something I'm missing?
aschuett is offline   Reply With Quote
Old Apr 1, 12, 8:11 am   #3
 
Join Date: Feb 2010
Location: US
Programs: (PM)AA UA DL SPG
Posts: 896
Points wise, these cards only make sense if any fees on the card are less than the value of the points earned and no other problems are created.

As far as spend goes, if you have a job where you put travel on your credit card and get reimbursed later, your CC spend will probably be higher than if you have to spend your own money.

Others have found ways to push more day to day spend through credit cards. Look at each transaction in your checkbook and determine if there's a way to use a credit card instead of a check in a way that makes sense; using your CC shouldn't cost more[1]. Then as time goes on, you look at each credit card transaction and decide which credit card to put it on for best results. For the points game, don't carry a balance. Paying interest wipes out the value of the points.

There are a number of threads already here on getting spend up. Proceed rationally, and ensure that any method fits your needs. Not all will.

[1] If you are trying to make a spend goal, then it can make sense to lose a few dollars on the individual transaction in order to make a spend goal and get 25K-50K points for doing so. But outside of this, paying to push the rent or mortgage payment through an intermediate to get 1000 points is almost always not a good deal.
__________________

It's a company. It's not going to love you back
reft is offline   Reply With Quote
Old Apr 1, 12, 8:33 am   #4
 
Join Date: Oct 2010
Location: GGG, DFW, IAH
Posts: 282
Quote:
Originally Posted by aschuett View Post
If I have done the math right:

$3.95 to load the card at a gas station, up to $500 per transaction (https://www.netspend.com/account/dis...leValueWithPin)
$2.50 per ATM withdrawl (plus ATM owner fee, if any) (https://www.netspend.com/help/freque...uestions.shtml)
restriction of $325 per withdrawl and $940/day
Plus the cost of gas for a round-trip drive to the gas station then to the [preferrably fee-free] ATM (if it's not on the same gas station). At this magnitude of transactions these expenses are significant enough to through into equation.
LongviewTX is offline   Reply With Quote
Old Apr 1, 12, 8:47 am   #5
 
Join Date: Apr 2012
Location: MKE
Programs: SPG Plat, Hilton Gold, Club Carlson Gold, Priority Club Gold, AA Plat,
Posts: 594
Very well done. I am still working out the details.

#1 While it is true that some establishments charge a fee, not all do. The gas station by my house is running a promotion on these cards for the next few months for fee waiver and loyalty points. I understand this may not be the case everywhere.

#2 The fee can be easly avoided by getting cash back at the grocery store, walgreens, ect. Granted a little persistance is neccesary but when has that ever stopped someone in the miles game.

As for the fees, I am new to this. I don't see a problem paying 21.85 for 6500 miles. It's that a bad thing? I am not trying to be sarcastic BTW. My only real experience with rates are ) buying a ticket 4/$ ( round trip home ) maybe more if I had a miles card. Buying miles ( i think ) is something like16/$ Also I use RN and get 5/$.

I may be naive but almost 300/$ sounds awesome to me.
phdtomd is offline   Reply With Quote
Old Apr 1, 12, 9:07 am   #6
 
Join Date: Oct 2010
Location: GGG, DFW, IAH
Posts: 282
Quote:
Originally Posted by phdtomd View Post

#2 The fee can be easly avoided by getting cash back at the grocery store, walgreens, ect. Granted a little persistance is neccesary but when has that ever stopped someone in the miles game.
Unless I don't quite understand the cashback thing (I have never used one), you should still purchase something at the store, i.e. have a legitimate purchase at a store in addition to which you get a cashback. And If I remember correctly the cashback menu at Walmart, amount of cashback is capped at maybe $200 or something.

This fact surely doesn't stop you from still running your scheme and earning miles, but makes the ultimate task - building a low-cost, low-effort, large-scale, continuous use and replicable scheme of earning miles (which is what Mint was) a somewhat very challenging task.
LongviewTX is offline   Reply With Quote
Old Apr 1, 12, 9:16 am   #7
 
Join Date: May 2010
Posts: 2,688
Sounds like an effective way to make a spend, esp if you can do cashback while making a purchase and reduce your cost to just the activation fee. I've got another $8,500 to burn off an Amex withing the next 2 months so I may explore it.

Looking at this further, unless I'm missing something, it appears to be only loadable via cash or check.
Stoughton is offline   Reply With Quote
Old Apr 1, 12, 9:55 am   #8
 
Join Date: Jun 2011
Posts: 275
Are you sure that it isn't considered as a cash advance?
dshargorodsky is offline   Reply With Quote
Old Apr 1, 12, 10:19 am   #9
 
Join Date: Apr 2012
Location: MKE
Programs: SPG Plat, Hilton Gold, Club Carlson Gold, Priority Club Gold, AA Plat,
Posts: 594
Quote:
Originally Posted by Stoughton View Post
Sounds like an effective way to make a spend, esp if you can do cashback while making a purchase and reduce your cost to just the activation fee. I've got another $8,500 to burn off an Amex withing the next 2 months so I may explore it.

Looking at this further, unless I'm missing something, it appears to be only loadable via cash or check.
eek, you are right
phdtomd is offline   Reply With Quote
Old Apr 1, 12, 11:18 am   #10
 
Join Date: Dec 2010
Location: JAN
Posts: 131
Quote:
Originally Posted by Stoughton View Post
Looking at this further, unless I'm missing something, it appears to be only loadable via cash or check.
So to be clear, if you buy the Netspend card, or a refill card at a store, you can only purchase using cash or check - you cannot use a CC? There's the catch!
aschuett is offline   Reply With Quote
Old Jun 18, 12, 10:38 pm   #11
 
Join Date: Oct 2010
Posts: 237
These can be reloaded with reload cards which can be bought at some places with a CC.
To avoid spelling it out for you, do a little bit of reading here:

http://boardingarea.com/blogs/freque...es-the-throne/

It has a distinct advantage over the Amex Prepaid card - bill pay, for companies that don't normally take CC, as in mortgages.. only 79 mortgage companies listed so far in their Biller Directory, but you can e-mail to request they add your Biller.

There is a $20 bonus for referrals when you load $40. A conga was just started in the Spam forum:

http://www.flyertalk.com/forum/s-p-m...-netspend.html
tripice351 is offline   Reply With Quote
Old Jun 19, 12, 7:08 am   #12
 
Join Date: Mar 2010
Posts: 443
Quote:
Originally Posted by aschuett View Post
So to be clear, if you buy the Netspend card, or a refill card at a store, you can only purchase using cash or check - you cannot use a CC? There's the catch!
That's the catch with like 99% of these cards.
scwam is offline   Reply With Quote
Old Jun 19, 12, 7:27 am   #13
 
Join Date: Oct 2009
Location: Florida, Credit Card Fraud Capital of the USA
Programs: Plans=59, TCC=146, MTP=228, C-Cards=26+, D-Cards=8+, Miles in Inventory=2.25M+
Posts: 3,891
You generally have to depend on internal controls failing and a clerk accepting a CC against policy which makes this an unpredictable revenue stream in your business model.

Quote:
Originally Posted by scwam View Post
That's the catch with like 99% of these cards.
AlohaDaveKennedy is offline   Reply With Quote
Old Jun 19, 12, 7:41 am   #14
 
Join Date: Mar 2010
Posts: 443
Quote:
Originally Posted by AlohaDaveKennedy View Post
You generally have to depend on internal controls failing and a clerk accepting a CC against policy which makes this an unpredictable revenue stream in your business model.
Got ya. Now you finally give it up after ignoring pm's.
scwam is offline   Reply With Quote
Old Sep 18, 12, 12:35 pm   #15
 
Join Date: Jul 2012
Posts: 248
Quote:
Originally Posted by phdtomd View Post
I am new and have been obsessing about miles, cash back, ect. I recently went to a gas station and bought a gas/merchandise card with my discover card. As it is there 5% cash back period for gas, I recieved 5% cash back for my $500 dollar gift card as it listed in the gas catagory.

I didn't see much info on Netspend but it seems to me like someone could purchase a net spend card at a gas station ( code for gas = earn 5%) and then simply use it to get cash from an atm (one of their options), put cash in your Bank account and pay off your cc. It's money laundering, but so is the mint trick. Again I have been obsessing about this. Seems like you can reload these thing at most places, walgreens, kmart, grocery stores, gas stations. You can take advantage of these category based rewards too.

I am a student and love deals but cant imagine a way to reach the bonuses on a cc when you have to spen 5000 in 6 months to get 10,000 miles.

Last edited by dontippet; Sep 20, 12 at 10:38 pm.
dontippet is offline   Reply With Quote
 
 
Reply

Bookmarks


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off
Forum Jump


All times are GMT -6. The time now is 2:50 pm.