Credit Card reward scheme, making it pay...

[speedy_thrills]

I've got a reward scheme on a credit card that amounts to a small reward for any spending on the card (equivalent to a flat rate of around 1% of the value of items purchased on the card). That got me thinking though, is it possible to charge the card and have funds refunded to my free transaction account (maybe via my visa debit card number or direct transfer to my account) to pocket the rewards? i.e. circle charging to create an arbitrage situation.

I remember working in electrical retail years ago we used to refund items to cards all the time and we often refunded to cards that where not ones the original card charged onto.

[btsidi]

Many retailers will check the last 4 digits vs the receipt, although some inexperienced/lazy/not bothered staff may let it slide.

IMHO a better way is to use the card for your monthly bills instead, £30 a week of petrol and £70 worth of shopping will get £52 a year for example (with another £10 from the footy season ticket)

[Rickeh]

speedy_thrills said:

I've got a reward scheme on a credit card that amounts to a small reward for any spending on the card (equivalent to a flat rate of around 1% of the value of items purchased on the card). That got me thinking though, is it possible to charge the card and have funds refunded to my free transaction account (maybe via my visa debit card number or direct transfer to my account) to pocket the rewards? i.e. circle charging to create an arbitrage situation.

I remember working in electrical retail years ago we used to refund items to cards all the time and we often refunded to cards that where not ones the original card charged onto.

I worked for Next for a few years. Would only refund onto the original card although I think the machine would put it through even if it wasn't the same card if you let it slide. As said it's relying on a lazy/inexperienced member of staff.

Either way i'm sure it's illegal or against the credit companies T&C's in some shape or form.

[speedy_thrills]

I've done some research since and it seems this is called "manufactured spending" and is very popular among the air point people in the U.S. However the way they do it doesn't circle charge, they just look to optimise their spending patterns to earn reward points.

I wonder if I could find a sharebrokering, spreadbetting or sports betting website website that would charge back to my credit card but refund to my transactional account?