Originally Posted by
lewisdrummond
True, but:
- The more transactions you do as a merchant, the lower your rate is. It could go down to 1.9%, meaning $1,900 for 100,000 miles. Not bad for a J return ticket.
- Buying miles has relatively low limits (around 40k), whereas CC earning limits are generally higher (around 100k). This method would allow you to 'buy' more miles than your limit.
As a merchant who does significant volume I can tell you that you are dead wrong. Even on a swiped card not sure you could get down to 1.9%. Even if you could you probably dont know how these merchant accounts work. They will find out. They will shut you down because you are in effect getting cash advances with no fees and huge risks on both sides of the transaction. Once they shut you down good luck getting another merchant account. I see zero benefits by the way in racking up huge 1 cent a mile points with credit cards for my airline program these days. Unless you are trying to get to 2 million mile status with American or something like that.
Rob