Using VisaBuxx to Generate Miles
 

I have searched a number of forums on this site for information on VisaBuxx and how it works, but have never seen a comprehensive description of how the program works and, more importantly, if it can be used to generate miles at a resonable cost.

Basically, a VisaBuxx card is a stored value card that is funded with a Visa or MC credit card. The three biggest restrictions with using VisaBuxx to generate miles are 1) the funding limits, 2) the cash withdrawl limits, 3) the fees. You can overcome each of theses issues the following way: 1) create multiple cards, although this requires social security numbers for each user, 2) "buy" money orders to overcome the cash withdrawl limitations, although this raises the total fees, 3) use a card that is best for you given where you live and how you plan to fund it.

I have a couple of B of A VisaBuxx cards. Each card can be funded with a maximum of $35,000 per year for $150 to $250 in fees. The best application for this is my SWA Visa card. My two cards will generate 4 Rapid Reward vouchers for appx $400 in fees. More importantly, it will also generate a companion pass when I combine it with my normal SWA traffic.


MTP

[This message has been edited by toddpate (edited 06-27-2002).]

I tried that since i am 16 and i did not want to have my parents cosign so i checked into it but it has to many draw backs

A VisaBuxx cardholder is a endangered specie - CapitalOne closed down their program yesterday and I wouldn't be surprised if a few other issuers follow suit. It's obviously not profitable for them when it boils down to such a thin profit, if there even is one. Something they don't disclose very good is a $2 monthly fee regardless if you use it or not.

[This message has been edited by TimCLE (edited 06-27-2002).]

Aren't there other prepaid MCs out there similar to VisaBuxx? I was under the impression that this was an "up-and-coming" program designed to lure unsuspecting tweens and teenagers into the world of plastic, thus priming them to become 18%-interest-rate-junkies once they hit college...

... of course, that nefarious purpose can be turned into a miles-earning opportunity! http://www.flyertalk.com/forum/wink.gif



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- Sameer

"Didn't we just leave this party?"
www.liningup.net

There are not that many here in the US, and very few of the ones that are here treat the funding as a purchase, instead of a cash advance that doesnt' generate miles. The success if relatively easy to obtain debit cards has pretty much killed the prepaid market.

The American Express version (CobaltCard) went belly up not long ago. VisaBuxx has several issuing banks, CapitalOne being the first to bailout...

Citibank issues a MasterCard version of the pre-paid card. Details can be found on their website. They just launched in Jan 2002

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I Love New York -- Viva España

"buy" money orders to overcome the cash withdrawl limitations, although this raises the total fees

If you know of a way to buy money orders using a credit card, please let us all know! If you could do that, then why bother with the Visa Buxx card, why not just use your regular milage credit or debit card? You can earn a few miles with the Visa Buxx card, but if you consider the daily withdrawl limits and fees, it would involve daily trips to the bank and a moderately high cost per mile. Not worth it IMHO.

Citibank's new prepaid card might have some mileage/rewards earning potential for those with Citi credit cards. I found information about the new Citi "Cash Card" at http://www.cashcard.citicards.com/

Some highlights:
"Annual Fee: $25.00
Load Fee: $1.50 - per load money transaction (waived when money is loaded to the Citi® Cash Card from a Citi credit/debit card or a Citibank® checking/savings account.)
Cash Withdrawal Fee: $1.50 - for each cash withdrawal at ATMs and bank tellers (Waived for cash withdrawals at Citibank ATMs.)

The minimum amount that can be loaded at the point of initial load is $10 dollars. The minimum load value amount going forward is $10.00 and the maximum is $1,000.00 within any 14 day period.

Each responsible party (Master Accountholder) will be limited to a maximum of 5 accounts."

So it looks like the most you could run through it in a year would be ~$26,000. If you use a Citibank card to fund the account and withdraw cash from Citibank ATMs, it looks like the only charges you'd pay would be the $25 annual fee. (This is assuming that the "loads" are treated as purchases by Citibank cards, similar to c2it, and not cash advances.) If one were really ambitious, one could get close to $130,000 of annual spending by opening the maximum number of Citi Cash Card accounts (5). That's a lot of time at the ATM, however, and given c2it's predilection for closing accounts, I'm not sure they'd let you get that far.

(BTW, this thread might be better placed in the Visa/MC forum.)

Allow me to define "purhcasing money orders".

A local grocery here in Austin allows you to "purchase" money orders with a debit card. You must use your debit card PIN number to complete the transaction, so a credit card would NOT work. However, from a VisaBuxx point of view, this is a "purchase" not a cash advance. This is relevant because VisaBuxx restricts the amount that can be withdrawn at an ATM or as a cash advance, but does not restrict the amount of a purchase.

[This message has been edited by toddpate (edited 06-28-2002).]

[This message has been edited by toddpate (edited 06-28-2002).]

DaveSF,
Can I also do that with Citibank AA CheckCard? I get 1 mile for every dollar spent same as credit card. Any fine print on that?

Damian: I don't have a Citi Cash card to test it, and I didn't see anything on the site the addressed the use of an AAdvantage debit card (or other Visa/MC debit card). However, my hunch is that as long as they allow you to link the card and waive the "loading" fees (and this is a big if), you should be fine. Your card certainly can't charge you a cash advance fee, given that the cash is being withdrawn from your checking account.

Exactly, that's what I was thinking. BUT, as far as c2it.com, you can not use Citibank check card - that's what I was told. I thought that this is the same issue and was wondering.

Thanks for the help.

American Express had one called Cobaltcard, but I don't see applications for that anymore, either.
It did not have fees if I remember right.