Back when I wrote my recipe for earning miles in 2002 via C2it -> Credit card --> Checking account, there were no fees, however, now over a year later, Citibank has indeed implemented a fee for these transactions.

Further, while BofA has stopped allowing debit card customers to earn miles with the purchase of money orders, Chase Manhattan Bank offers a debit card which it seems that no one, including myself, has tried out as a mileage earning possibility when charging money orders. I would assume that they implemented the same rules as BofA did back in January 2003, however, I've not seen any posts from FT'ers who have this card, which is affiliated with Continental Airlines.

Since there are no Chase Manhattan office in the SF Bay Area, it is too troublesome for me to try this opportunity, but I think that it might still exist, should someone ever try it out.