I spent much of the past week in Providence, RI at a professional development workshop learning some new coding skills for the computer science class that I teach. During that time I decided to take a first real stab at manufactured spending and had some wonderful success.
For those unaware of the term, manufactured spending means using your credit card to somehow buy an item (therefore earning points/miles on said credit card), then somehow liquidating that item back into your bank account to pay off the credit card debt you just accrued. I have done it once or twice before in NYC and it is notoriously difficult to liquidate some of the items you can buy. The one method I have heard of working very well was using gift cards to purchase money orders, specifically at a Walmart, where fees are low and opportunity is high.
So, I took this knowledge and put it into action. While staying at the Providence Marriott Downtown, I used the fact that I have a Chase Ink Cash card that earns me 5x the points when purchasing items at office supplies stores to buy loads of Visa gift cards at the Staples just across the street. Then, I took a nice walk to the local Walmart to buy money orders with those gift cards.
The fees involved were not that bad. To buy a $200 gift card at Staples costs $6.95 in fees each and to buy a money order at Walmart is $0.88 for up to a $2000 money order. In total, I was spending $28.68 to earn 4,139 points. So, if you do the math, it cost me roughly 0.69 cents for each point that I earned. Since The Points Guy values each of them at around 2.0 cents for each point, I did quite a good job getting some new value. Not too shabby for a first real try.
The big question now is whether or not I can duplicate this process in Brooklyn. I already know where to get the gift cards (Staples nearby me) but when I’ve tried to find a source to liquidate near me I have come up short. I know there is a Walmart in New Jersey and one in Long Island that are public transit accessible, but it still adds cost. Still searching!