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Originally Posted by scotti81
I have question about another kind of "refundable fare tricK". I'm sure that it has been tried and dismissed in the past, but I always wondered about it.
If one has an airline credit card (Chase MP for instance) and you buy an expensive refundable ticket for, say, six months hence. The credit card payment goes through, and at the end of your billing month, Chase passes the miles over to MP. Once that is transferred, it doesn't seem that they can claw it back. You then cancel and refund the ticket, keeping the credit card earned miles.
There must be something in the T&C to stop this, but as far as I can see from a naive point-of-view, as long as your credit limit is big enough, you could score some free miles. If it is wrong, please point out why. Or if this is a loophole that is being exploited that I don't know about, and you want to keep it secret, let me know and I will delete asap.
I'm not sure about clawing back as I don't have the T&C in front of me right now, but Chase credits miles based upon net purchases, so the refund would at least reduce the number of miles credited in the subsequent month(s).