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Vanilla Reload Vs. MoneyPak?

Super Contributor

Re: Vanilla Reload Vs. MoneyPak?

You know, any MS in the range of a few thousand, no issuer is going to care, unless fraud is suspected.  I really don't think there's any risk to, say, $2,000 per month.  The only issuer who may care is if an AmEx FR has been triggered, which would be extremely unlikely for the majority of people.

 

I wouldn't be concerned unless you were at least MS'ing north of $5k.

Message 31 of 66
Established Contributor

Re: Vanilla Reload Vs. MoneyPak?


juggalo9er wrote:

card cost is 3.95 i purchase 900 @ 5% cash back net gain $41.05 i only do this when barclay has boosted points


Sorry, I thought you meant you only buy $50 worth.

 photo NUS000000180_160X101_STRAIGHT.gif photo DISCOVER_IT_LG.gif photo card_1.png photo night-launch.png photo NUS000000012_160X101_STRAIGHT.gif photo bankamericard-better-balance-rewards-credit-card-small.png
$15000 ........... $12500 ............ $11750 ............ $10000 ........... $9400 ............ $5000 ............. $5000
In the Garden until at least November 2015
Message 32 of 66
Established Contributor

Re: Vanilla Reload Vs. MoneyPak?

Chwebb, MS might not be a profitable tool for everyone.  For credit builders it could be a tool to create transactions.  

 

Basically one would be investing $3.95 to show CL usage for the purpose of maybe attaining higher CLs.  It would be a  cost of building credit.    

 

Just a rough guess.  

 

I'm starting to understand this game now.  It's not at all difficult when you can find a system to load free.  Conceivably one could Manufacture all price ranges with little or no cost.      

 

 

 

Discover IT $19,000 == 12/2013
AMEX 12/2013 ---BCP $12,000 === BC $23,000 ----- 04/2014
CHASE SLATE $5,700 === 12/2013
BoA 123 $6000 === 12/2013
Barclay Rewards $1500 == 12/2013
Message 33 of 66
Established Contributor

Re: Vanilla Reload Vs. MoneyPak?


Fico2Go wrote:

Chwebb, MS might not be a profitable tool for everyone.  For credit builders it could be a tool to create transactions.  

 

Basically one would be investing $3.95 to show CL usage for the purpose of maybe attaining higher CLs.  It would be a  cost of building credit.    

 

Just a rough guess.  

 

I'm starting to understand this game now.  It's not at all difficult when you can find a system to load free.  Conceivably one could Manufacture all price ranges with little or no cost.      

 

 

 


I'm not saying it can't be profitable. I was just saying in juggalo9er's case, I didn't see how it could be profitable for him/her. I've bought things like iTunes Gift Cards on sale at Best Buy (when I had 5% cash back) and that definitely saved me a lot of money. I'm not sure if that qualifies as MS of not. I've also bought Visa gift cards to load onto my Bluebird to pay other credit card bills for the cash back (and promptly paid off the card I just bought it with).

 photo NUS000000180_160X101_STRAIGHT.gif photo DISCOVER_IT_LG.gif photo card_1.png photo night-launch.png photo NUS000000012_160X101_STRAIGHT.gif photo bankamericard-better-balance-rewards-credit-card-small.png
$15000 ........... $12500 ............ $11750 ............ $10000 ........... $9400 ............ $5000 ............. $5000
In the Garden until at least November 2015
Message 34 of 66
Contributor

Re: Vanilla Reload Vs. MoneyPak?

This is a very interesting thread!  I have been MS the for two months.  I have mixed it with my AMEX and also a couple of Chase cards.

 

I didn't think that the issuer would care, since they're making money off the transaction.

 

Let's say they make 3% fee off my purchase, why wouldn't they let me continue to MS if they can keep making money?

AMEX TrueEarnings 10K | AMEX BCE 10K | AMEX Hilton Honors 10K | AMEX Hilton Surpass 2K | Bank of America 1-2-3 2K | Barclay Card 2K | Chase Southwest Premier Visa 6K | Chase Marriott Premier Visa 9K | Discover IT Card 1.5K | Merrick Bank 1.4K | Navy Federal Credit Union Visa 10K | Navy Federal Credit Union navCheck 15K | USAA Rewards 7K |+ tons of store cards (GE furniture, Amazon, Lowes, Home Depot, etc)
Total amount of available credit $100K
Scores (as of December 2013) Equifax 714 | Experian 714 | Transunion 727
Short term goal is score 750+ across the board
Long term goal is to have all scores close to 800 or 800+
Message 35 of 66
Frequent Contributor

Re: Vanilla Reload Vs. MoneyPak?


brianjb wrote:

This is a very interesting thread!  I have been MS the for two months.  I have mixed it with my AMEX and also a couple of Chase cards.

 

I didn't think that the issuer would care, since they're making money off the transaction.

 

Let's say they make 3% fee off my purchase, why wouldn't they let me continue to MS if they can keep making money?


I believe it boils down to how much you MS.

 

Once you get going, it becomes a game and it's hard not to "push the envelope." There's a lot of strategy in it and when a new strategy arises, I immediately want to give it a chance (especially when I'm making a decent profit).

 

Granted $5k/month is probably not going to trigger any fraud (depending on income IMHO); however, MSing $15-30k/month may be another story. So although the bank is making money on each transaction, they see you as a risk when all they can see is high CC spending and money coming in from external accounts/money orders. It also adds to it if you MS more than your income/year.

 

In the end, there are a lot of factors that go into doing it safely. I will say though, IMHO (again!), I would not be buying VR's for anything less than $500. It's $3.95 no matter what you put on it, so you should maximize each card to get a better value. It's $3.95 for 50, 100, 250, OR 500 points (or more points/cash back, depending on CC)!

Message 36 of 66
Super Contributor

Re: Vanilla Reload Vs. MoneyPak?

Re issuer making money: also depends on the card.   When a 5%+ card cashback card is used, it's unlikely that the swipe fees cover the rewards  (I specify cashback, because with things like actual airline miles we don't know how much those miles cost the issuer)/

 

But we really don't know even the basics of who pays what and there are a lot of conflicting stories.   If you buy a $500 VR at a drug store, you pay $503.95.   Does the pharmacy pay swipe fees on the whole amount?  Some have been told (by store managers) that the answer is "No", which makes sense, as the transaction would be unprofitable (and then it would be strange for CVS to RAISE the limit to $5000 per day).   How is the $3.95 split between Incomm and the drug store, etc?  

 

So we don't know who is at risk of losing money on the transactions, but presumably 5% cards are worse for the bank than 1% ones.

Message 37 of 66
Established Contributor

Re: Vanilla Reload Vs. MoneyPak?

i just want to start msing to get a ton of miles lol .. i wanna hit 1million miles

CSR | Ink Business Preferred | Amex Platinum | NFCU Cash Rewards
Message 38 of 66
Super Contributor

Re: Vanilla Reload Vs. MoneyPak?


darkfrosty wrote:

i just want to start msing to get a ton of miles lol .. i wanna hit 1million miles


If this is your real goal, sign up bonuses are the way to go (with MS to cover minimum spend)

Message 39 of 66
Established Contributor

Re: Vanilla Reload Vs. MoneyPak?


Open123 wrote:

You know, any MS in the range of a few thousand, no issuer is going to care, unless fraud is suspected.  I really don't think there's any risk to, say, $2,000 per month.  The only issuer who may care is if an AmEx FR has been triggered, which would be extremely unlikely for the majority of people.

 

I wouldn't be concerned unless you were at least MS'ing north of $5k.


I do about 25K a month spread over 8 cc's and two people (me and my DW). We average about 16K between our two CSPs and our two Freedoms. We also spend the most regular on those so it makes it look better. The other 8K is spread between our two United's and two Hyatt's, our hotel and airlines of choice. I would like to diversify providers (those are all Chase). but I think as long as we don't exceed our stated house hold income, each of us does spends about 3/4 of our stated household income,  i don't think there will be an issue. I haven't had a problem yet.

Last App March 23, 2015. Gardening until November 25, 2015
Current Score: 766 EX 734 EQ 780 TU 6/30/2015Starting Score/Goal Score: 580s/780s across the board
Message 40 of 66