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and the easiest way to "hypothetically" get away with manufactured spending can be found at any wal mart gas station! in theory they sell prepaid mastercards for 3.95 which can have up to 500 loaded on them. using barclay for an example who gives 2% cash back..the net profit is 5.95, minus the 1 dollar fee for transfering the money to your bank account where you can easily make a payment on the chosen credit card. i would relate this to bill clintons testimony in regards to his relationship with monica lewinsky!
PP will shut you down quick if you get caught. There are better methods as pointed out by the other posters.
In the end though it's no risk, no reward. IMO you have to find a middle ground. A level that YOU and the banks can both deal with. If you do too much, the banks will shut you down and flag you as a point abuser (CHASE) but on the other hand you will never really reap all the huge benefits if you just sit idly by. These big banks are not loyal to you and neither should you, to them. Use them as a tool to create a better life for yourself.
MSing is risky for PP or any deposit taking instituions. People need to understand that they need to make money somehow somewhere. So just feed them a little.
I have a business that runs a bit of volume for the past ten years and I don't plan to MS and withdraw to bank accounts that many have done and had their accounts closed.
Ok enough MS talking. There's more to doing things than some of you know and withdrawing money into an account is not a great way to build relationship with PP.
The question is, why paypal? its not free for sending $$ from a CC, there is 2.9%+$0.3 fee. So are you willing to pay 3 cents for 1 mile?
Paypal pays me 1.5% for purchase transactions completed using my paypal mastercard. Since I will be running 50-100 sales a month through paypal MSing would not be an isolated transaction so can mix in quite well.
I am also a business owner that has access to other merchant accounts that will allow me to place charges to my PP debit cards. Fee might offset the 1.5% that PP pays me.
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