FlyerTalk Forums - View Single Post - Buying large quantities of miles
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Old Aug 7, 2010 | 1:16 pm
  #68  
MilesToGoBeforeISleep
20 Years on Site
 
Join Date: Mar 2002
Location: SFO, CA
Posts: 406
Originally Posted by wanaflyforless
I have pursued this idea.

IF you have a merchant account that already has $$$$$$ going through it, you can probably earn yourself millions of miles at ~1 cent each by doing something like the below example:
1) Get 10 trusted friends to open a card like the Asiana Amex from Bank of America that earns two miles per $, not one. Friends would open card for your (temporary) use only.
2) Charge $100K to each of these cards over time. Of course, promptly pay the bills to avoid any CC charges beyond your merchant CC fees.

If you have an Amex rate of 2%, that would be 2 million Asiana miles (Star Alliance, redeem alliance wide) for $20,000 in merchant fees. Be aware this sort of thing is probably against your merchant agreement in some way and you will not get away with it if charging 2 million $ is outside of your normal pattern.
I've thought through this (I have a business that accepts credit cards). Problem is that the money coming in is income and is subject to income tax...
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