36902BRF

I think you misunderstood him. I am assuming he can purchase/liquidate 10k in 90 minutes/day NOT per month. Still a more than decent hourly wage depending on how close you are to a Simon and the follow on liquidation locations.

hamokmonky

$503.95*20*.02-$3.95*20=122.58/90 min = $81/hr, not including liquidation costs, gas, etc. I suppose if MS is your job, and you are doing all other forms of MS possible, then sure, maybe thats good for you. Personally, it is not my main profession, so I much perfer higher values.

CFFrost

I agree - I think adding ~$100 per day to your income is a pretty decent return. I just think that Citi probably won't put up with this volume for very long, even if it is spread across several cards - so it is pretty risky - but every person has their own risk tolerance.

MileageGoblin

Uhm, no. It was pretty clear he's referring to 90 minutes a month by basing it on 3 minutes for the CSR to process $10k at Simon. That's not including drive time or liquidation which I clearly pointed out. Your assumption he spends 45 hours/month is not feasible. It doesn't take an hour to liquidate.

Depends on how much your day job salary is and how much you value your time. Spending 20-30 hours a month for 1.1% is ok, but I'd rather spend less than 10 hours getting 3.9% and then utilize the time savings for other methods for travel rewards. That's all I've been saying and yet the "rabble rabble rabble" continues.

36902BRF

It is totally possible to liquidate 10k in an hour. Just because you cannot doesn't mean it is not possible.

horseymen

I was referring to 90 minutes a day. $81 (someone else's calculation) an hour is more than I make in my day job. For others who $81 an hour isn't good money - you have blessed lives. From drive time to different walmarts to back home, I can usually run a route for liquidating 10k in 90 minutes. I'm sure some can do better. It's not a bad daily part-time gig. For others, it's a rounding error.

Someone making $10 an hour doesn't make $81 in a day - most days, so as always, it's a YMMV!

They have gotten good at loading up cards at my Simon, though.

hamokmonky

Its not that $81 an hour (my calculation) isnt a good earning. It certainly is. But, given that there is a limit to a lot of things in MS, it makes more sense to go after the bigger opportunities first. 10K every day on a 2% card presents a lot of problems, first off, you are running a lot of money through one or two cards. Second off, you are running a lot of volume through a likely small amount of stores to cash out. They see you every day..... Third, you are having to deposit those money orders everywhere. Thats a lot of banks required to carry those numbers. If you can get as much profit with less volume, that is more ideal. Also less volume means less expenses/time typically. Less change of shutdowns, etc.

MileageGoblin

What's with the reading comprehension people? I didn't say i takes over an hour and my posts clearly back that up. If you read earlier, you would see I said it can take up to 2 minutes a money order, therefore should take less than 20 minutes for $10k. If you're going to flame, get you facts straight first.

Oh wow, I assumed you wouldn't be doing this if it took you 90 minutes a day. Usually people on here leave off the drive time and gas expenditure in their calculations. If the CSRs knew you by name, I could see it taking only 3 minutes a pop, thus the 90 minutes in a month at only Simon. The CSR told me the reason you were doing it. I have to say congrats to you on meeting your goal. ^ Might as well continue hitting hard as the rest is gravy.

I agree as that's what I've been saying. The net is only 1.1% after Simon fees and that doesn't take into account gas and time which lowers that $81/hour. If this person wishes to keep doing this, they should consider bringing one of the other card members with them to get $20k/pop and/or traveling to multiple Simon's in one day. That would substantially increase efficiency. As for the problems, I guess Citi hasn't had an issue with this yet as the user is spreading it over 3+ cards which is good. I guess a lot also depends on the CLs which we don't know.

horseymen

All of these are true - but given how many Walmart's still have bill pay in DFW - at least 50-60 within a 20 mile radius. Within 3 miles of my house, there have been 3 new neighborhood markets open this year. These are cards that are bill payable, which makes it easy - it's definitely one spoke in the wheel. There are others that pay more, but time is not a problem I have - I have plenty of time. I could get banned from Walmart Regionally - but that's a risk we all run.

hamokmonky

To each their own, I am glad it works for you and I hope it continues to work for you. Simon, at least, does not appear to have the inventory issues some stores do.

arlflyer

Maybe because they've realized they can make $4 over and over for about no cost? And that's just profit, not even to speak of revenue...I wonder how much Simon's bottom line has gone up?

Always was strange to me back in the VR days how there was such a supply issue, given that it was a product that was easily scalable to manufacture at massive volumes, took up almost no space, and was pure profit.

Hecta

Not much. As of 3Q14 they still barely mention these "handling fees related to the sales of bank-issued prepaid cards". They call it supplemental revenues in their 10-Q. I don't blame them for continuing to do it because, like you said, it's easy money for them.

particlemn

I think it drives traffic to the mall, they might include these numbers in the mall total sale numbers and then increase rents to retails in the mall telling them the mall is increasing revenue at a large rate so rents go up

alaskantraveler

To throw in my 2 cents. I currently use Simon Malls as my primary MS method. I wish I could buy $10k a day, but that isnt very scale-able. How many days of $10k a day before redflags on the part of simon malls gets you banned. Maybe if you have many simon malls in a small area. There is only one Simon mall near me.

I generally make one trip per week to Simon Malls and purchase $9k worth of the $1,000 biz gift cards. $3.95 fee. If I put all of this on my barclays arrival returning 2.22% I am making $199.80 gross. Now for the fees. $3.95 per $1k is $35.55 total card fees. Plus $0.70 for $1,000 = $6.30. Total fees = $41.85 so net = $157.95.

Now for my time. Reasonably the Simon Malls trip takes 45 minutes between driving there, parking, getting to the office, getting the cards issued, walking back to the car. Liquidating the cards takes several trips as I can only liquidate $2k in money orders per day at any single walmart, there is also Fred Meyer for another $3k per day. In order to liquidate $9k in money orders by myself I would have to visit 4 different retailers. At 45 minutes each with driving. Total time around 3 1/2 hrs for $157.95 = about $45/hr. Not a bad hobby. I didnt include fuel and vehicle cost.

MaxVO

You also did not include the time for reading and writing pages upon pages of posts on the internet message boards.