Cashback...without spending money!

a quick scenario...I like to call these 'scenario's' as then it doesnt mean its advice hehe

(credit card cut off date 7th of each month- payment date 1st)

on the 8th of January, you buy a TV (therefore giving you the maximum time to pay it off) on a cashback credit card (lets say at 2%)

the value is £500.00, giving you £10.00 cashback. Make sure you ask about the return period...ok lets say its 28 days for refund or exchange. keep the reciept and product boxed.

During February you go back to the shop get a refund, but say that you have closed your credit card account, therefore obtaining the cash as a refund.

3 working days (or however long it takes to clear and reduce your direct debit) before the first of March you deposit the money (you could split it up for it to look less suspect)...or you could deposit it indirectly into your current account and just pay it by direct debit...

you now have recieved cashback for nothing...

Ok this is with £500.00...but you do this with £1000.00 or £2000.00 a month, (to the capped limit) whilst using your other cards for spending and earning seperate cashback.....then get a seperate card for your partner and do the same....

lets give a sensible example...(based on £1000.000 each)- £40.00 a month £480.00 a year!

your thoughts please......
INCREASE INTEREST ON SAVINGS!

...I will thank you if youve been helpful, please do the same! :j
«1

Replies

  • sickersicker Forumite
    1.4K Posts
    Well the way I see it it does not matter if you have closed the card. The money belongs to the card not you and that's where it will go back to and the cash back will be reclaimed. Also you do not get immediate cash back, in my case I have to wait 'till March. It won't work.
  • wayoflifewayoflife Forumite
    281 Posts
    sicker wrote: »
    Well the way I see it it does not matter if you have closed the card. The money belongs to the card not you and that's where it will go back to and the cash back will be reclaimed. Also you do not get immediate cash back, in my case I have to wait 'till March. It won't work.

    so why do you think It wont work,

    how does your card know where that money has come from, if you put it in to your current account and pay from there? and yes there is a card that pays instant cashback (well monthly cashback) Id like to hear how it wont work...
    INCREASE INTEREST ON SAVINGS!

    ...I will thank you if youve been helpful, please do the same! :j
  • sickersicker Forumite
    1.4K Posts
    Well wayoflife if you believe it will work good luck to you. If you try it and it works lets us know and we will all applaude you. I just can't see the banks allowing it.

    John
  • TirianTirian Forumite
    959 Posts
    Part of the Furniture Combo Breaker
    So this basically involves lying to a large number of retailers on a regular basis about expensive purchases?

    Count me out!

    (I'm not a lawyer so I don't know if this is right, but couldn't this be perceived as obtaining money by deception? In which case your losses would probably outweigh your gains as soon as you got caught out ...)
    For where your treasure is, there will your heart be also ...
  • wayoflifewayoflife Forumite
    281 Posts
    Tirian, can you give me some information on how to buy shares from ebay please?

    cheers
    INCREASE INTEREST ON SAVINGS!

    ...I will thank you if youve been helpful, please do the same! :j
  • emma396emma396 Forumite
    760 Posts
    u will probably get refund as vouchers if it is a high street shop.
  • wayoflifewayoflife Forumite
    281 Posts
    Al_Mac wrote: »
    You are joking, aren't you:confused:


    no ys this?
    INCREASE INTEREST ON SAVINGS!

    ...I will thank you if youve been helpful, please do the same! :j
  • i was thinking a similar thing just recently after getting my nice new cashback card but was also put off by the fact that i'd soon run out of stores to do it in!

    Excuse me if i'm being ignorant but is there a reason why you can't use a site like Moneybookers to make payments to yourself from your cashback credit card just to earn the cashback (without incurring too many fees that outweigh the 4%)?

    For example Moneybookers only seem to charge 40p, or have i missed something. It seems too easy!:confused:

    thanks!
  • SHAGGY84SHAGGY84 Forumite
    54 Posts
    This sounds like fraud to me why not just do a balance transfer to your bank account and keep it the outcome will just be the same!!!!!!!!!!!!!!
  • edited 25 November 2010 at 8:42PM
    MilarkyMilarky Forumite
    6.3K Posts
    Part of the Furniture 1,000 Posts Photogenic
    edited 25 November 2010 at 8:42PM
    I'm using my 4% cashback card with my local credit union because I was already a member and they started to issue payment cards a few years ago. The payment goes in through PayPoint and will come out through a cheque eventually. There is a small transaction charge in my case (less than 0.2% for larger amounts) when paying in.

    Here is a list of credit unions you could join who currently accept PayPoint payments (not all will be eligible of course but you may find one that will take you)

    You then need to find a helpful retailer/merchant who will treat this payment as 'groceries' item since they act as collectors of the money and then pass it on to PayPoint- who passes it on to your CU. Larger retailers in particular will probably allow you to pay for PP credit in the same way as you do your shopping. That's the trick. Officially it is 'groceries' because the merchant chooses to handle it that way. (They can insist on cash though, hence the need to 'test purchase') Your credit card can then turn 'credit' into 'cash' and any interest-free period or cashback is awarded as a result.

    Steps required:

    1) Investigate your PP merchants (look for the sign):

    PayPoint_logo.jpg

    2) Try paying for some 'credit' (eg mobile phone credit, a small bill) at one and see if they will take your credit card (They should not seek to apply a surcharge of any kind)

    3) If this works you can investigate joining a will CU from the list above (check with them any charges applicable)

    Who gains/who loses?

    The merchant will probably lose because they pay the credit card for the privilege of using it - say 1.5%. They seek to recoup this through profits on sales - although PP probably doesn't pay out as much as the CC charges. Groceries are about 30% profit, though, so if you fee sorry about doing this buy a few items too.

    PayPoint gains because use of the card has no effect on them - the merchant must pay PP 'cash' straight out of their trading account. PP gives the merchant a rebate amount on this, which can be 1% to 40% depending on the items concerned. So the merchant will get back maybe 1% of the 1.5% it has cost them. Larger retailers may be aware of this but will balance the convenience and greater profitability of most transactions handled against this. So I suspect they will wear it

    PayPoint passes the monies to Cooperative bank, it seems, who then forwards amounts to credit unions. There is a per-transaction charge by the CU in my case (of 38p) as this is what the Co-op Bank charges them for this collection service. Thus is would appear that Co-op Bank might be losing out IF the transaction is above a certain amount (on the assumption that PP charges the Co-op 1.5%-2% to raise a profit itself. Say it's 2 percent, then the Co-op Bank only makes money when less than £20 is paid in - otherwise it becomes a charity.

    The CU may or may not pass on the charge - let's say it does just to cover costs. They don't therefore lose out if they do this.
    .....under construction....
This discussion has been closed.
Latest MSE News and Guides

Iceland's helping struggling pensioners

It's giving out free £30 food vouchers

MSE News

Who can suggest a top-notch bed?

This Forumite's mattress is in need of a base

MSE Forum