Intro to Manufactured Spending
A prepaid debit card functions kind of like a bank account. You can load money onto it in various ways. Then, once the money is on the prepaid debit card, you can use it to pay for items, such as in-store transactions, or paying bills. However, a prepaid debit card is different from a bank account in that it can be loaded and spent in ways different from the ways money can be loaded and spent from a bank account. Prepaid debit cards, Visa gift cards, and Mastercard gift cards are some of the basic tools used in manufactured spending. This is a cheap way to earn miles and points from credit card spending. With manufactured spending, you can earn more miles and points than you would if you only used your credit cards to pay for your everyday expenses.
While there are many variations to it, manufactured spending typically has three steps.
A lot of manufactured spending involves trial and error. It doesn't always go perfectly, and opportunities can vary in different parts of the US. One of the biggest challenges that frequent flyers run into is that sometimes stores are out of reload cards or Visa gift cards. In other cases, stores have those reload cards or Visa gift cards, but they don't let people buy those using a credit card. It's possible to sometimes ask someone, online or in person, about which stores in a particular area the person had success. However, you oftentimes have to do some experimenting in whatever city you're in, to figure out the best places to go for manufactured spending. Lastly, a problem many frequent flyers have with prepaid debit cards is that the prepaid debit card issuer oftentimes shuts down people's accounts. This is unfair because oftentimes, people don't break any rules and still get shut down. However, you have to live with it.
Even if you just earn 1 mile or point per dollar spent for buying reload cards or Visa gift cards, chances are the value of the miles or points that you earn would still be worth more than the fees you pay for the reload or gift cards. You would get even more value if you earn bonus points, e.g. from category bonuses or big spend bonuses. Also, if you manufacture spend and make use of shopping portals, then it makes it even more lucrative. Check out some of the other pages for a description of the different ways to manufacture spend and earn bonus points. Check out Frequent Miler's reference page about the best category bonuses. Check out Frequent Miler's reference page about the best big spend bonuses.
While there are many variations to it, manufactured spending typically has three steps.
- First, you use a credit card to buy reload cards or certain types of gift cards.
- Then, use the reload cards or gift cards to load a prepaid debit card.
- After that, use the prepaid debit card to pay the credit card bill.
A lot of manufactured spending involves trial and error. It doesn't always go perfectly, and opportunities can vary in different parts of the US. One of the biggest challenges that frequent flyers run into is that sometimes stores are out of reload cards or Visa gift cards. In other cases, stores have those reload cards or Visa gift cards, but they don't let people buy those using a credit card. It's possible to sometimes ask someone, online or in person, about which stores in a particular area the person had success. However, you oftentimes have to do some experimenting in whatever city you're in, to figure out the best places to go for manufactured spending. Lastly, a problem many frequent flyers have with prepaid debit cards is that the prepaid debit card issuer oftentimes shuts down people's accounts. This is unfair because oftentimes, people don't break any rules and still get shut down. However, you have to live with it.
Even if you just earn 1 mile or point per dollar spent for buying reload cards or Visa gift cards, chances are the value of the miles or points that you earn would still be worth more than the fees you pay for the reload or gift cards. You would get even more value if you earn bonus points, e.g. from category bonuses or big spend bonuses. Also, if you manufacture spend and make use of shopping portals, then it makes it even more lucrative. Check out some of the other pages for a description of the different ways to manufacture spend and earn bonus points. Check out Frequent Miler's reference page about the best category bonuses. Check out Frequent Miler's reference page about the best big spend bonuses.
Types of Reload Cards
There are 4 major types of reload cards. The way you use a reload card is you take one from the rack at a physical store that sells the cards. At the cash register, tell the cashier how much money you want loaded onto the card, and then the cashier will activate it for you. It's recommended that you load the maximum amount, in order to make maximum use of the fee. Pay using your credit card, and the desired amount plus the fee will be charged to your credit card. After the reload card is activated, look on the back of the card. There is a place where the PIN number for the reload card is hidden. Use a coin or other object to scratch off the PIN number. Then, go on the reload card's website and type in the card number for both the reload card and the prepaid debit card you want to load it to. The money will be taken off the reload card and onto the prepaid debit card.
There are 4 major types of reload cards. The way you use a reload card is you take one from the rack at a physical store that sells the cards. At the cash register, tell the cashier how much money you want loaded onto the card, and then the cashier will activate it for you. It's recommended that you load the maximum amount, in order to make maximum use of the fee. Pay using your credit card, and the desired amount plus the fee will be charged to your credit card. After the reload card is activated, look on the back of the card. There is a place where the PIN number for the reload card is hidden. Use a coin or other object to scratch off the PIN number. Then, go on the reload card's website and type in the card number for both the reload card and the prepaid debit card you want to load it to. The money will be taken off the reload card and onto the prepaid debit card.
Types of Gift Cards Used in Manufactured Spending
There are 3 major types of gift cards used in manufactured spending. For the Visa and Mastercard gift cards, there are various ways to set a PIN number, depending on exactly which type it is. If you set a PIN number on a Visa or Mastercard gift card, then it can be used as a debit card. The American Express gift cards are not PIN-enabled, and so you have to liquidate American Express gift cards in other ways. You can liquidate an American Express gift card by using it in a store to buy reload cards, Visa gift cards, Mastercard gift cards, or prepaid debit cards.