1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Buy From Yourself to Earn Free Credit Card Rewards?

Discussion in 'BlackHat Lounge' started by agag2, Sep 12, 2014.

  1. agag2

    agag2 Supreme Member

    Joined:
    Feb 17, 2009
    Messages:
    1,308
    Likes Received:
    254
    Hi

    Is it legal to buy something from yourself using your own credit card to get rewards on the purchase and then take the money from your other account and pay up you credit card bill?

    For example, suppose I accept stripe payments (stripe is just an example of payment processor, of course you'd need to accept something that charges less than the cashback / rewards % you get from credit card company) and I charge myself $1,000 on my credit card. I now get 2% rewards (depending on credit card) which means I have extra $20 in my account.

    I have two questions:

    1. Is it legal?

    2. If it is legal (i.e, no law against this) is it against the terms of credit card company? Will they shut you down if they find out? Will they find out?

    Thanks
     
  2. jahaz

    jahaz Regular Member

    Joined:
    May 27, 2013
    Messages:
    239
    Likes Received:
    49
    Location:
    Nebraska
    As a merchant you dont have any processing fees? Im sure $1000 will have atleast $20 in processing fees. What you need to do it start a dropshipping company on the side then put all invoices on the credit card. Rack up some free flights.
     
  3. agag2

    agag2 Supreme Member

    Joined:
    Feb 17, 2009
    Messages:
    1,308
    Likes Received:
    254
    I am assuming here there are no fees -- my question is if the practice is legal.. not if it is practical
     
  4. jahaz

    jahaz Regular Member

    Joined:
    May 27, 2013
    Messages:
    239
    Likes Received:
    49
    Location:
    Nebraska
    I think its important to distinguish legal and breaking the credit cards terms of service. I think its probably legal but breaking their terms of service might get you in a civil dispute or have your account shut down. However this site is all about break tos so if you can find a way to do it without raising flags, go for it :cool:
     
  5. agag2

    agag2 Supreme Member

    Joined:
    Feb 17, 2009
    Messages:
    1,308
    Likes Received:
    254
    There are merchants who charge 0.25% processing fee so your still up 1.75%
     
  6. bullsbears

    bullsbears Regular Member

    Joined:
    Feb 17, 2014
    Messages:
    477
    Likes Received:
    128
    Occupation:
    Derivatives Trader
    Location:
    Wall Street
    Even if it is legal no one is gonna support this in open or publicly.

    And i am just trying to find out who would actually suffer loss due to this practice ?

    If there is no loss to anyone then it comes to more about Morality.