Old Nov 21, 12, 10:29 am
  #2951  
gardengirl
 
Join Date: Jul 2001
Location: DTW
Programs: AA Gold, Marriott PLT
Posts: 746
Originally Posted by psychoandy View Post
you're thinking about it the wrong way. spending 70 bucks in fees to get 17,500 UR points is essentially buying miles at 0.4 cents per mile + your time and effort going to OD and CVS...if you don't think this is a good rate, don't bother with it.

also i wouldn't really take a Chase "banker" seriously, especially with the CC game. bet they probably can't even name the 3 credit bureaus or how to call for recon. but the fact that you're uncomfortable charging $3500 for essentially cash equivalents IMO means you probably shouldn't do it unless you have additional spend to back it up.
Originally Posted by tdrag97 View Post
Other problem is if he can use those Visa gc to get those VR... still haven't found any place that would accept these VGC, MGC, etc for VR. all the store in my area req ID and CC to match
Thanks for the input. I know miles aren't worth purchasing if you don't have an expectation of using them. Less than 1/2 a cent per mile seems reasonable and in fact good since a visit to OD and CVS are fairly convenient.

The CVS portion is still a mystery. The next step is to check this out in my area. Getting the Ink and BB accounts set up, searching through this thread for the details of a plan and find the stores seems to be the most time consuming. Once it become routine it won't be so inefficient.

Another way to think of it would be I have 2 options: pay the mortgage same as usual (deducted from bank account) and annually receive 1% cash back ($380 ) or put in a little effort and get 100K to 192K miles for a trip of memories. I don't know of another beneficial option for payment.


Originally Posted by MDtR-Chicago View Post
Would you pay $4200 for it? Valuation should be based on what you'd actually pay.


"Hey banker, I want to do something that I think you wouldn't like. It might just make me an unprofitable customer! So can I? Huh? Can I please do something that, in my gut, feels like it's manipulating the system? Hopefully, you'll say it's ok, rather than make some kind of notation on my account or alert your superiors to my plan. Thanks."
MDtR, thanks for your input too. It's a good question to ask "how much would you pay?" I've wondered what we'd pay for tickets if miles weren't an option. And I haven't been able to decide. All our Business and First class to Europe has been with miles from MR points. The first time I found out comparable seats on Aer Lingus came up on Orbitz at $5K I was shocked. Made the memory of the trip even more special There was a time I never thought I'd pay $100 for a pair of jeans. But I have. So, would I pay $4,200 for a ticket. Who knows? If there was no other form of payment (as in miles), we really wanted to go on the trip, and we had the money to do so, I guess maybe we would. My miles have a value for me. It's more of a question "how valuable is 100K miles". I put a lot a thought and planning into spending them because I equate them with $4,200 since that's what it would cost to be in that seat on the way to a dream trip.

Your conversation with the banker sounds like it could be that way but it went a bit differently. Without all the cautioning on FT I would merely look at the allowable parameters in the Ink documents and assume there would be no problem with $1K daily spend at OD, up to $5K per month. Anything, including the rack of cards, in the store would be game.

It was because of FT that I began thinking of my business and how the Ink card would be a benefit. Since we had applied for 2 cards online we went to the bank to apply for the Ink. At that time, I was up front with the business banker that I was into the Chase cards for the points with certain categories. It would be the same spend, but it would be spread to the most beneficial card. He could see we had regular use with the MR card and I explained we had outgrown the benefits and wanted to spread expenses to cards with other category bonuses. He understood because he knows they use these sign-up bonuses and bonus categories to market their cards. There's a lot of competition out there.

After that visit the bank called to see if we would want to come in and talk about other ways they could help us with our accounts. In that meeting I was again up front and said we got the new cards for the bonuses and to spread spending to the most beneficial cards. Still no problem. I explained my business doesn't need much in the way of staples and paper from office supply stores but I could really utilize the GC rack and asked if that would be a problem as long as I had comparable other spending on the card. His response was "the banks make money on these cards". As long as I stayed within the allowed limits he saw no problems. I have no doubts Chase will profit more from our business than I will with the amount of UR points I get from them every year. My manipulations will be well within those allowed by the t & c's. It's all the cautions from FT that have created a heightened concern to have a back-up plan if we're ever questioned.

We've put all our auto pay accounts on the Ink so there will be a balance of other spending. The Ink/OD/BB scheme is just a bonus to the Chase cards. If it works, it works. If it disappears the main plan is still intact.

Is he the definitive on this . . . no. He's one banker at one branch. But these discussions are my back-up if there's ever the slightest issue.

Last edited by gardengirl; Nov 21, 12 at 10:38 am
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