<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by PlaneFriends.com:
Well considering they look at this as fraud, why are the authorities not involved. Exspecially when it is is with numbers like we see here in this thread. They have to pay for every mile they buy for anyone to post to someones account. Hence if they are not getting the return on investment and just having to purchase miles, it is excessive in their books. If they did really close them down to fraud, they are withholding information from the police.
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I don't see how this is fraud. There's no law against transferring money out of your credit card account to a bill pay account (C2IT), and then transferring it to your checking account to pay the credit card account. The fact they don't charge a fee for this doesn't make it fraud. That's their problem, not your's.
That said, I do a little bit of this tranferring each month. But far from huge amounts, which would make what I'm doing quite obvious, then they'll shut me down.
I don't feel any guilt doing this. Citibank already makes tons of money from me, in that I have a banking relationship with them, pay them an onerous $50 annual fee for the AAdvantage MasterCard, plus have made tens of thousands of dollars of real purchases on the card. I just look at the extra mileage I get from this as a "good customer bonus" I give myself.