4 ms·

What is churning in this context?

sokoloff 4y ago
Taking unusual actions to harvest credit card rewards. https://www.nerdwallet.com/article/credit-cards/credit-card-churning https://www.nerdwallet.com/article/credit-cards/credit-card-...
rtkwe 4y ago
Credit card rewards churning probably. Basically finding cards with either attractive starting offers or ongoing rewards and then generating cash flow through them that is recurring. One example was the mint at one point was selling some coin online with free shipping, after receiving the coins you'd just deposit them into your account for zero loss. It looked like a normal purchase to the CC so you got the full points for it. https://www.nerdwallet.com/article/credit-cards/credit-card-churning https://www.nerdwallet.com/article/credit-cards/credit-card-... https://viewfromthewing.com/free-miles-for-churning-presidential-coins-from-the-us-mint/ https://viewfromthewing.com/free-miles-for-churning-presiden...
- klipt 4y ago
  > One example was the mint at one point was selling some coin online with free shipping, after receiving the coins you'd just deposit them into your account for zero loss. It looked like a normal purchase to the CC so you got the full points for it. Presumably the mint was eating the credit card fees on this, so effectively it was a transfer of money from the government to the churner, with the credit card company keeping some amount on the way.
  - pxx 4y ago
    The mint actually wanted to get rid of the dollar coins that they were accumulating storage fees on. Congress decided to make the mint mint way too many dollar coins (and prohibited it from advertising) and nobody wanted them. Once people ordered and deposited them they'd make their way to the Federal Reserve and were no longer the mint's problem. So yes, a transfer of money from the government to the purchaser, but with a lot more steps. Don't forget the free shipping. The USPS probably got paid by the mint.

Taking unusual actions to harvest credit card rewards. https://www.nerdwallet.com/article/credit-cards/credit-card-churning https://www.nerdwallet.com/article/credit-cards/credit-card-...

rtkwe 4y ago

Credit card rewards churning probably. Basically finding cards with either attractive starting offers or ongoing rewards and then generating cash flow through them that is recurring. One example was the mint at one point was selling some coin online with free shipping, after receiving the coins you'd just deposit them into your account for zero loss. It looked like a normal purchase to the CC so you got the full points for it. https://www.nerdwallet.com/article/credit-cards/credit-card-churning https://www.nerdwallet.com/article/credit-cards/credit-card-... https://viewfromthewing.com/free-miles-for-churning-presidential-coins-from-the-us-mint/ https://viewfromthewing.com/free-miles-for-churning-presiden...

klipt 4y ago
> One example was the mint at one point was selling some coin online with free shipping, after receiving the coins you'd just deposit them into your account for zero loss. It looked like a normal purchase to the CC so you got the full points for it. Presumably the mint was eating the credit card fees on this, so effectively it was a transfer of money from the government to the churner, with the credit card company keeping some amount on the way.
- pxx 4y ago
  The mint actually wanted to get rid of the dollar coins that they were accumulating storage fees on. Congress decided to make the mint mint way too many dollar coins (and prohibited it from advertising) and nobody wanted them. Once people ordered and deposited them they'd make their way to the Federal Reserve and were no longer the mint's problem. So yes, a transfer of money from the government to the purchaser, but with a lot more steps. Don't forget the free shipping. The USPS probably got paid by the mint.