Credit Card Reward Loop

[xeemzor]

My school has an ID in which you can deposit money to from a credit card. Additionally, it is possible to withdraw money from the ID in the form of a check. What is to stop someone from doing an infinite loop where they fund the ID with a credit card for cash back rewards, and then use the check from the ID to pay for the credit card bill? Do most CCs have an abuse clause in regards to rewards and would this trigger that clause?

Note, I have no intention of actually doing this. Just something I thought about for a bit.

 

[Epic Fail]

Credit card company wouldn't care where you make the deposit.

Your school is on the losing end if you are really allow to do it, but they will probably stop you if you deposit too much.

 

[OrganizedChaos]

does it count as a cash advance?

 

[akshatp]

Originally posted by: OrganizedChaos
does it count as a cash advance?

Thats what I was going to ask. If not, then there is nothing stopping you from ass-raping your school until they catch on.

 

[xeemzor]

Originally posted by: akshatp

Originally posted by: OrganizedChaos
does it count as a cash advance?

Thats what I was going to ask. If not, then there is nothing stopping you from ass-raping your school until they catch on.

I could be wrong, but I'm fairly sure it's not a cash advance, just a regular charge.

 

[jagec]

I'm surprised the school has such a program. Normally they'd have a service fee for cash (well, check) withdrawals, or a surcharge for CC, since it costs them more.

 

[xeemzor]

Originally posted by: jagec
I'm surprised the school has such a program. Normally they'd have a service fee for cash (well, check) withdrawals, or a surcharge for CC, since it costs them more.

They do require you to request a refund in person and I'm assuming it takes some time for them to get the check to you, so it's not like you can continually do this multiple times in a day. If it was all electronic based, then I'm sure it would have been abused to hell already.

 

[kranky]

Seems pretty obvious that the school would put an end to that game quickly, when they tire of issuing refund checks over and over to the same person. Or they would immediately change their policy, and say all refund checks after the first one carry a $25 service charge.

I don't think the CC issuer would care.

 

[Epic Fail]

Originally posted by: xeemzor

Originally posted by: jagec
I'm surprised the school has such a program. Normally they'd have a service fee for cash (well, check) withdrawals, or a surcharge for CC, since it costs them more.

They do require you to request a refund in person and I'm assuming it takes some time for them to get the check to you, so it's not like you can continually do this multiple times in a day. If it was all electronic based, then I'm sure it would have been abused to hell already.

Even if the school is stupid enough to let you do it continuously, you will run into credit limit on your card.

 

[TwiceOver]

I couldn't imagine the CC taking a withdrawl as a charge. If so, do it up big.

 

[xeemzor]

Originally posted by: yamadakun

Originally posted by: xeemzor

Originally posted by: jagec
I'm surprised the school has such a program. Normally they'd have a service fee for cash (well, check) withdrawals, or a surcharge for CC, since it costs them more.

They do require you to request a refund in person and I'm assuming it takes some time for them to get the check to you, so it's not like you can continually do this multiple times in a day. If it was all electronic based, then I'm sure it would have been abused to hell already.

Even if the school is stupid enough to let you do it continuously, you will run into credit limit on your card.

While you have that initial limitation, use the limit is high enough for you to make a decent chunk of change for each transaction($20-30). Also, it is possible to pay off the card before payment is due in order to have more free credit available.