Anyone know if this is illegal? (rotating money)

Chu

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Jan 2, 2001
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I am going to apply for a Netvisa card from netbank.com, which offers 5% back on purchases to goods at amazon.com, outpost.com, and a couple others.

I also have a paypal account . . .

I am wondering if it's illegal to draw out, let's say, $2000 from my credit card to paypal (earning the 5%, paypal getting 2.9% of the cut), having paypal put the money into my debit account with citibank (free of charge), and then paying off the credit card with that money. I don't see anything wrong with this at first glance, but just want to make sure before I try it.

-Chu
 

Zim Hosein

Super Moderator | Elite Member
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Nov 27, 1999
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I don't see anything wrong w/ your theory, makes me think of doing it myself, but I'm too lazy :(

edit: Ain't that the gospel BustaRhyme, you are so right.
 

gopunk

Lifer
Jul 7, 2001
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i don't think so....

for a second, i thought you were going to be talking about money laundering or something!

i don't thikn there's anything wrong with it because i've heard of similar schemes that are legal. i forget what they were, but they're out there ;)
 

Brian Mc

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Oct 12, 1999
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Okay, I'll bite...

What makes you think you'll get 5% cash back from your card on a transaction with Paypal?
 

Chu

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Jan 2, 2001
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>>

Okay, I'll bite...

What makes you think you'll get 5% cash back from your card on a transaction with Paypal?

<<

How would netbank distinguish between Paypal and an ordinary store? Paypal pays service charges just like everyone else does, they're not a bank.

-Chu
 

gopunk

Lifer
Jul 7, 2001
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<< I've always wondered, what exactly is laundering money? >>



it's where you take money gotten through illegal means, and put it through stuff like bank accounts and loans and crap like that to make the money lose it's "history"
 

Chu

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Jan 2, 2001
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>> This is the card you're talking about, right?

Ah, doh. Should have read that more carefully. The thread on the hotdeals forum about credit card perks made this sound like it was ANY purchase :(

-Chu