mikeef

Okay, go easy on me because I am new to the "debit card for miles" plan, but I just got off the phone with Key Bank (1-888-539-1234, for those who want to check my math--very friendly, by the way), and the representative told me that it doesn't matter whether I use credit or debit, I still get 1 mile per $2 that I spend. In other words, I could go to the post office, buy the money order, redeposit, earn miles, lather, rinse, repeat. Since this sounds like the holy grail of debit cards, could somebody point out where I made my mistake? Thanks.

Mike

Edited to add link to Key site:

http://www.key.com/templates/t-ps3.j...&link=bullet1#

[This message has been edited by mikeef (edited 10-20-2003).]

BigLar

Well, there's this from the rules:

"A maximum of 80,000 OnePass miles per Checking Account may be earned annually by making Purchases.

OnePass miles are not earned by any use of the Card for cash advances (including ATM and check transactions), teller withdrawals, checks paid (including check truncation or electronic checks), point-of-sale cash back transactions greater than the purchase amount, annual fee for the Card, returned checks and other adjustments to your Checking Account. "

So - it's CO only, costs $30/yr, and the rules seem to prohibit playing games with circulating money.

OTOH, if you pay everything with your debit card (and I suspect you can get some folks to accept debit before credit) you might be able to make out.

I wish someone who was an accomplished "money launderer" could give a definitive answer on this.

mikeef

I agree that the maximum of 80K is a downside, but there does not seem to be any limit on, say, buying money orders from the post office. For those who like Continental miles, it does not seem like a bad deal.

In the meantime, I'm still looking to see if there are any restrictions that I missed regarding money orders from the post office, since this seems like a big opportunity. Most of the other stuff (teller withdrawals, etc.) are of less concern.

Mike

lilprincess

The post office topic has been discussed heavily in this forum, check the archives. At present, you are not able to purchase money orders using the credit function, which is normally what earns you frequent flier miles. Money order purchases are considered point-of-sale (i.e. debit).

mikeef

I agree with you. But what I was told by the bank representative is that POS puchases are eligible for miles. In fact, rule 8 (Click on the above link in my first post, scroll down about 2/3 of the page to "important rules.) also seems to imply that debit purchases are eligible, just not over the amount of the actual purchase. It reads:

"OnePass miles are not earned by any use of the Card for cash advances (including ATM and check transactions), teller withdrawals, checks paid (including check truncation or electronic checks), <i>point-of-sale cash back transactions greater than the purchase amount,<i> annual fee for the Card, returned checks and other adjustments to your Checking Account."

It seems to me that this is the "grocery store rule (I go to the grocery store, buy $50 worth of groceries and get an extra $20 in cash back. In this case, only the purchase would get me points.)," but that the actual purchase amount is okay.

Mike

dallasflyer

What is the cost of the Postal Service money order? If it is over 1/2 of one percent then this is problably not a good deal as the debit card earns one point for every two dollars spent. So the cost of CO miles would be 1 cent per mile or more plus the thirty dollar annual fee for the debit card.

------------------
dallasflyer, Let's put the fun back in FlyerTalk!

mikeef

Just found this on the USPS website:

"Postal Money Orders are a safe, convenient, and economical alternative to sending cash through the mail. They can be purchased from any Post Office™ in the United States as well as from any rural route carrier. Postal Money Orders are available up to $1,000 with a daily limit of $10,000 per customer. Identification is required for money order purchases over $3000. Other features include:

Domestic Money Orders

Purchase with cash, debit card, or traveler's check
Valid for an unlimited period
Can be cashed at any Post Office or most banks in the U.S. and its possessions
Replace damaged, lost, or stolen money orders

Fees:

$0.01 to $500.00 ...................$0.90
$500.01 to $1,000.00 ...........$1.25

So, assuming I get 500 miles for a $1,000 money order purchase, $1.25/500=.25 cents per mile. Not bad, if this works. It will be a royal pain, though, to buy ten money orders at a time.

Mike

Edited to add: I believe that cash (including debit card) purchases of negotiable instruments such as money orders could trigger regulatory reporting requirements, so be prepared to fill out forms.

[This message has been edited by mikeef (edited 10-22-2003).]

[This message has been edited by mikeef (edited 10-22-2003).]

gotlabs

Key Bank only allows $500.00 per day for purchases using a PIN.So you could buy a $499.00 money order with $.90 fee.You would get 250 miles for the trouble on driving to and from post office, waiting in line , etc... Hardly seems worth the time involved to me.

Alcibiades

Key Bank will pull a BofA move if everyone keeps discussing this.

Roginator

A similar, but less drastic ploy I was considering today is to use the Alaska Airlines credit and debit cards. Make all your purchases with the credit card, then pay the credit card bill with your debit card using money orders.

If you normally spent $1000 monthly on your credit card, you'd have enough miles for a saver ticket each year after spending $120 for money order, postage and card fees. Or in 2 years you'd have enough for a regular ticket after spending about $240. (and 24 trips to PO)

Roginator

Oops..nevermind. You can no longer get miles for money order purchases using the Alaska Airlines debit card:

"We take the total amount of POS purchases for a calendar month and subtract any (a) credits related to POS purchases, (b) other adjustments to your deposit account related to POS purchases, (c) cash back from a POS transaction, (d) Quasi-cash transactions, which are transactions convertible to cash and include the purchase of money orders, travelers checks, foreign currency, cashier's checks, gaming chips, and other similar instruments and things of value..."

abcx

This is a 7 year old thread, I know. But does anyone know if BoA can distiniguish a money order purchase at USPS/Walmart from a regular USPS/Walmart purchase?

mileage junkie

No, they cannot.