Using VisaBuxx to Generate Miles
Jun 27, 2002 | 4:03 pm
#1
Original Poster
Join Date: May 2001
Location: Austin, TX
Posts: 139
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).]
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).]
Jun 27, 2002 | 5:21 pm
#3
Join Date: Feb 2001
Location: Seat 1A or 59B
Posts: 564
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).]
[This message has been edited by TimCLE (edited 06-27-2002).]
Jun 27, 2002 | 5:44 pm
#4
Join Date: Apr 2002
Location: Monterey, CA
Programs: AA Lifetime GLD, SPG Gold, UCLA Alum ('96)
Posts: 540
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!
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- Sameer
"Didn't we just leave this party?"
www.liningup.net
... of course, that nefarious purpose can be turned into a miles-earning opportunity!
------------------
- Sameer
"Didn't we just leave this party?"
www.liningup.net
Jun 27, 2002 | 7:41 pm
#5
In Memoriam
Join Date: Feb 2000
Location: Easton, CT, USA
Programs: ua prem exec, Former hilton diamond
Posts: 31,801
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Grasshopper:
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!
</font>
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!
</font>
Jun 27, 2002 | 8:37 pm
#6
Join Date: Feb 2001
Location: Seat 1A or 59B
Posts: 564
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Grasshopper:
Aren't there other prepaid MCs out there similar to VisaBuxx?
</font>
Aren't there other prepaid MCs out there similar to VisaBuxx?
</font>
Jun 28, 2002 | 3:06 am
#7
FlyerTalk Evangelist
Join Date: Sep 2000
Location: OH
Programs: AA Lifetime Plat, Marriot Lifetime Gold
Posts: 10,003
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 Espaa
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I Love New York -- Viva Espaa
Jun 28, 2002 | 12:23 pm
#8
Join Date: Jun 2002
Posts: 85
"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.
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.
Jun 28, 2002 | 12:28 pm
#9
Join Date: Jun 2002
Location: SFO/JFK/DRO
Posts: 275
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.)
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.)
Jun 28, 2002 | 12:35 pm
#10
Original Poster
Join Date: May 2001
Location: Austin, TX
Posts: 139
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).]
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).]
Jun 28, 2002 | 3:45 pm
#12
Join Date: Jun 2002
Location: SFO/JFK/DRO
Posts: 275
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.
Jun 28, 2002 | 6:36 pm
#13
Join Date: Jan 1999
Location: ORD
Programs: United, AA
Posts: 624
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.
Thanks for the help.