Thanks to some clever scheming individuals coin collectors everywhere are going to find that adding to their collection will be just a little more difficult. That’s because some cardholders found a perfectly legal yet unfair way to collect rewards points using their rewards credit cards by costing the government money and paying nothing in return.
These conniving rewards cardholders purchased these dollar coins which are then shipped free of charge to their doorstep. Each of these coins can be worth hundreds or even thousands of dollars depending on the age and type of coin. They would buy a bunch of them and then take those coins straight down to the bank where they would receive full value for their investment. This gave them tons of rewards points redeemable for even more cash. Once the cardholders received that money back from the bank they would then pay off their credit cards before the billing cycle ends making the coins also interest free.
It may seem like it’s no harm done here but when you take a closer look, it hurts a lot of people. All that free shipping of coins, to the purchaser then to the bank and then back to the US Mint, can really add up. All those extra shipping expenses just to have to pay to ship it back really can affect the bottom line which could lead to potential layoffs due to expense cutbacks.
While we may be a little bummed that we hadn’t thought of the plan ourselves, it is a good thing that the US Mint has closed this loophole which was both hurting the bottom line of the US Mint, but also couldn’t be too fun for the credit card companies paying out those ill earned rewards to these individuals. From now on, the US Mint will not permit online purchases of dollar coins using a credit card.
Now if a person whishes to purchase dollar coins online, they must do so by wire transfer or check. This may be more inconvenient for a lot of honest collectors simply looking to snatch up a piece of history, but something obviously had to be done.
As always, stay tuned to CreditCardsProfessor.com for more of the latest credit card news, special offers and important updates.
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