Is it possible to use refundable travel deposits to meet spend requirements? e.g. book travel and put down a deposit for the amount of spend required, then cancel after the miles have posted but before any cancellation penalties accrue. What are the consequences of doing so with respect to getting FF miles, etc? And if you've done it, how have you done it, with whom, and for what amounts? More interested in meeting spend in a timely fashion than anything else.

 

You better not try to pull this on Chase.

No idea of other banks, but Chase will go after you on the negative miles balance all the way to your corresponding FF program account.

 

First, I presume you are not having luck with coins from the mint?

Of course this works. That is booking a refundable ticket 6 months out, will incur spend and hit your statement. You'll earn any miles/bonus deserved. Its the same with any returnable item in a store.

Whether its wise or ethical is a whole different question, and the consequences are unclear and reportedly vary significantly by card company.

I imagine each card company is within its right to take back points or miles. It will probably be harder for them to do that if they've "bought" miles somewhere else, vs. something like AMEX Membership Rewards Points.

If a card decides to charge you for the points you "owe" them, it could be a hefty price. For example, with AMEX it can be 2.5 cents per point.

I probably gets extremely sticky if you were to redeem and use those points/miles before you refunded your big item. I wouldn't want to find myself in that situation.

It also *probably* (I really don't know) depends on whether you actually hit your spend minimum, even if outside the qualifying period, before refunding the first purchase. I.e. you need to spend $1000 in month 1, you buy a refundable item for $1500 in month 1, you get your bonus at the end of month 1, between months 1-2 you actually do spend $1000+, in month 3 you refund the $1500 purchase.

Bottom line is, I wouldn't recommend it, at all. I'm sure others will disagree, but I think its one of the more unethical things you could do with credit cards. Better to buy things you'll actually use, even ifs its something like a supermarket or gasoline gift card for future use.

I would also never do this with a card carrier I might want to have future accounts with (for example, I very much value my lifelong relationship with AMEX for several reasons, and would never try to abuse that relationship. I don't want AMEX to close my accounts and refuse future business, which they could easily do).

Coins, gift cards, buy things for friends and have them pay you back in cash, or simply don't spend more than you can afford.

And if you do try something like this, make sure you read, print out, and keep, every last word of the T&Cs so you know to what they're entitled.

 

I believe a poster has reported in the huge BA thread that Chase banned him from getting a Chase issued card due to "past account history".

 

If this is truly what you are going after, there are better ways to meet spending requirements. See this recent discussion thread for more details:

If US Mint/credit card issue comes true,any ideas for using new cards for bonus miles

 

Thanks everyone. It's a bit questionable, I agree--which is why I wanted to put it out there for comments. The idea is absolutely to reach quick spend, then achieve the actual spend later on before redeeming any points. The thought was to "time shift" spend.

I don't know how violently a CC company would react, because this surely must occur innocently in the natural course of things; e.g. someone deciding to cancel one cruise in favor of another, or due to changed circumstances--not with any intention of repeatedly and deliberately using this as a technique to obtain more miles than deserved. I was more interested in the idea as a one-time event to quickly reach spend, being fully prepared to have miles yanked from the account--but not the miles achieved through the promotional bonus itself.

Hard to believe no one ever cancels travel plans and asks for a refund when booking with a CC that just happens to be a FF card.

No, I haven't participated in the U.S. Mint spend practice. I won't pass judgment on it as used by others, though some have I imagine.

Thanks again for the thoughtful replies and suggestions.