I’m not quite sure how this scheme worked. You can’t buy money orders with credit cards but I guess some stores will let you buy them with store gift cards? I think MOs are as cheap as 99 cents per. So if you can buy $1000 worth of gift cards, at 5% rebate you get $50 back, or $49 after fees. Deposit money orders to your bank and pay off the charge before interest kicks in. Recycle this every day it can add up to about $18,000 a year. Perhaps he had even greater spending power so maybe tens of thousands a year for the physicist?
Yeah.
It’s like free credit, minus the fees.
Said he made $300K. I’m not sure over what time span.
*He pulled the concept from personal-finance websites: Exploit the difference between unlimited 5% rewards and lower fees*
I still don’t understand...the article seems to say using gift cards to purchase money orders gets you rewards? you get rewards from using gift cards ?