How can we get money back from what we buy ? (1-10%) can’t we abuse it if someone we know has a shop ?
In: Economics
Every month, the credit card company will reduce your bill by the cash back amount once you’ve paid the bill. If you return merchandise, the amount is credited to your card (it charges a negative amount) so you will receive negative cash back.
Abuse of credit cards benefits has happened before, though. One of the most notable examples was back in the 2000’s when the US Mint issued a series of dollar coins with the faces of all the presidents. They could be bought online at face value and with free shipping. So people bought tons of them, then deposited the coins into their checking accounts and paid off the credit card bill, which accumulated reward points from the cc company. It cost the US Treasury so much in merchant fees (the fee Visa, MasterCard, etc charges a seller per purchase) that they stopped the program entirely.
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