Update to earlier today: no more REDcard scam as of TODAY

I’m going to file this under “Wow, insanely crazy timing!”

One of my friends just pointed out that REDcard is no longer allowing credit card loading, as of today.  This was announced unofficially throughout the internet basically yesterday.

As my clever friend pointed out, the credit card companies are probably losing money giving away free points/miles/cash back *in addition to* losing out on being able to charge high interest rates for cash advances (my original observation).  This is probably a money loss situation because, I am assuming, credit card companies calibrate their points systems based on thoroughly researched and statistical data about how much money people tend to spend with credit cards, and what kind of balances they carry.  Just like life insurance companies do with actuarial science.  So if people are coming in and flooding the market with spending (which is promptly paid down, as it would only make sense for people do when using this scam), then the points are, as my friend put it, devalued.  And the bank is giving away free asset in exchange for no interest collected.  Good point Jorge!!!

So I don’t mind if it makes my last post look dumb.  This scam is getting shut down like I figured it would.  Just too soon for me to get in on it!


2 thoughts on “Update to earlier today: no more REDcard scam as of TODAY

    • No kidding! Well the people I have talked with about it regard it as “may as well get in on it while it lasts.” Acknowledgement that it seems to be a loophole in the System rather than a legitimate tool. But hey, I guess there is nothing wrong with the attitude that we should try anything against Big Business until they stop us. We all know they will try anything against us.

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