The practicality of buying and returning stuff the the miles
 

I'm new to the forum and read a couple of posts regarding some form of buying with a CC, get the points, and then returning the goods.

Ethical issues aside I don't think this is a viable approach to getting anywhere. Think about it, just how many purchases will you have to return in order to get any decent amount of miles/points.

I can only see it "working" if you're want to get that last 1k-2k points/miles you need for something.

That being said, I'd love to find an instrument like a bond or something which can be bought with a CC. That way, if you have the cash, you could buy a $25K instrument, pay the CC, get the points/miles, and just wait for maturity (3-6mo, whatever). Anyone here know of such a thing?

The other problem is that when you return the item, they will reduce your number of miles accordingly. Unless, of course, you return the item on a different card or for cash. Most merchants will not provide a credit on anything other than the card that it was purchased.

There is a thread on buying dollar coins from the mint with a credit card. That is the closest thing to buying a bond.

You would be surprised to find out how many retail stores just ask you for your credit card and do not check. I once had to return something and gave the wrong card, big mistake since the card I gave was not a debit card. When the refund went through on my cash back card they gave me a negative cash back award, I had to call and have it fixed.

Buying things and returning them to get miles can be time consuming and chances of headaches may not make it worth it. Though, if you buy something from the skymiles mall, and get say 10 miles per dollar spent at a store like footlocker that provides free shipping and then return your purchase and put the refund on your debit card.... you may be able to rack up miles quickly. Though you won't be able to do it many times, still not as great as the presidential coins.

You used to be able to buy US Savings Bonds online with a CC. Not any more. Check the other thread...I believe you can purchase a diamond ring via CC at Costco or similar and get a refund via check or some way other than your CC.

Another pitfall with this technique is that some retail stores use a service called "Return Exchange." If a store asks you for your driver's license when returning, they are probably using this program. If you return a certain number of items (even with a receipt) at "Return Exchange" stores, you can be banned from returning at all.

i just did this (not intentionally) at my school bookstore. I actually lost the card that use to pay for the book i bought, and they said i could put the refund on any card i wanted.

Why not just do the coins like eeryone else is? http://www.flyertalk.com/forum/miles...can-coins.html

Costco is great because they take m/c visa online and give cash back when you return at the store. Just have the cash to make the cc payment so it does not cycle, and return before the costco return cut off date (varies by item). Think expensive laptops, watches.

Not that I would know.

I've had a few times where I had a substantial refund (a few thousand dollars) and both times I called Amex and asked them to send me a check. They were a little slow getting it to me but I did get it and it allowed me to earn my normal amount of SPG points. Now I didn't do this for the points, it was a legitimate refund. I will have a similar occurrence this month with a $4k refund (paid for baseball postseason tickets but team didn't make playoffs).

This is just a little too edgy for me. Companies change policies all the time. Return that computer or TV and now there is a re-stocking fee. Or you "must use the same credit card for returns." Or, you go over your credit limit. Or something.
For the relatively few points you can gather, compared with the hassle, I just don't think it's worth it. JMHO.

+1.