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Old Mar 26, 07, 12:39 pm
Join Date: Jun 2001
Location: Seattle, WA, USA
Posts: 326
Large value transactions will be treated suspiciously by the credit card company, especially if other charges the company is charging are much lower in value. Here are some potential problems:

1. Unless your friend owns a company like a lumber yard, coming up with "high value transactions" regularly will cause problems.

2. Credit card companies have technical rules that can be invoked regarding using your credit card for "business purchases". They are happy to get your business, however, too much of a good thing will make them raise eyebrows.

3. The merchant's exposure will increase quite a bit. Most merchants are limted to a set amount every month (ie. 50K or 100K etc) and the card company will cut off any transaction that exceeds that limit.

4. The government could be on your back for high value transactions that don't have any product attached to it. While your purpose is to earn miles, it could be mistaken as money laundering or other illicit activity.

mikeinseattle is offline