Well Marathon Man, you would have really loved the old days of Home Depot $100 Gift Cards, purchased with whatever rewards credit (not debit) card you choose which gave cash back after any small purchase, instead of the residual value remaining on the card. I read about this on Flyertalk, and don't recall too many being upset about the ethics (or maybe I missed it). This process had the same effect of earning miles at full or double credit, giving cash back, and didn't require the whole convoluted return scheme, and in effect caused the same loss on the card transaction fee for the merchant. Of course Home Depot stopped this, though it's effect would have still given them a benefit of a small sale that may have gone elsewhere and a more loyal customer.

Does anyone see the end result to the merchant as having a similar ethical concern? With debit cards aren't there much lower merchant fees anyways... so less loss in this method to merchant and less gain to buyer(returner).

Just reading Home Depot and cash back brought this to mind. I don't have a mileage earning debit card and won't be looking for one myself.


[This message has been edited by ddavis (edited 02-05-2003).]