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TXTim
Penny Hoarding Member
629 Posts |
 Posted - 10/07/2009 : 07:02:48
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A banker at one of my dump banks told me about a fraud alert they received via bank-wide e-mail which warns them about large deposits of fed-wrapped small dollar coins. He says people have been using cash back credit cards to buy them from the US mint direct ship program and turn the coins into the bank directly. He also said that some have been bold enough to have them shipped directly to their bank to be deposited.
Personally, I think it's an smart & easy way to make $12.50 per order with a 5% cash back card.
Doesn't sound like any laws are being broken - just another failing gov't program with unintended consequences.
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Beer is my currency. |
Edited by - TXTim on 10/07/2009 07:04:14 |
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Kurr
1000+ Penny Miser Member
2906 Posts |
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dakota1955
1000+ Penny Miser Member
2212 Posts |
Posted - 10/07/2009 : 08:21:28
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| I order those dollars from the mint, got points on my credit card but I spent the one I didn't want. |
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Bluegill
1000+ Penny Miser Member
USA
1964 Posts |
 Posted - 10/07/2009 : 16:04:01
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quote:
Originally posted by TXTim
A banker at one of my dump banks told me about a fraud alert they received via bank-wide e-mail which warns them about large deposits of fed-wrapped small dollar coins.
Fraud my a$$. Sounds like the banks just don't want to deal with all the $ coins.
He says people have been using cash back credit cards to buy them from the US mint direct ship program and turn the coins into the bank directly. He also said that some have been bold enough to have them shipped directly to their bank to be deposited.
Personally, I think it's an smart & easy way to make $12.50 per order with a 5% cash back card.
Doesn't sound like any laws are being broken - just another failing gov't program with unintended consequences.
You hit that one right on the nail head sir. 
Show me a government program that hasn't...
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Coinage
Penny Collector Member
Canada
303 Posts |
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fb101
Administrator
USA
2856 Posts |
Posted - 10/07/2009 : 17:28:57
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A: No fraud.
Mint program to get dollar coins into circulation, they ship an order of dollar coins, face value cost and free shipping.
You pay for them on a credit card which give you a 1% cash back rebate. So you send the mint $500, they send you $500 coins, and you keep the $5.00 cash back. (ordinary income) |
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barrytrot
Administrator
USA
721 Posts |
Posted - 10/07/2009 : 18:48:21
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quote:
Originally posted by TXTim
Personally, I think it's an smart & easy way to make $12.50 per order with a 5% cash back card.
Doesn't sound like any laws are being broken - just another failing gov't program with unintended consequences.
Actually this is one Government program that TOTALLY WORKS. Coining money is generally a profit device for the government. They don't actually pay someone when they make more :)
Making a small dollar costs something like 6 cents. So their profit after cc fees and shipping is probably 70 cents per coin.
The bank is the one that gets hosed, of course :)
I love the "fave value coin" programs. I don't use them, but I want the government to make money in a way other than taxing people and this is one, a small one, but it's something! :) |
Edited by - barrytrot on 10/07/2009 18:48:59 |
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JerrySpringer
Penny Hoarding Member
669 Posts |
Posted - 10/07/2009 : 19:40:21
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quote:
Making a small dollar costs something like 6 cents. So their profit after cc fees and shipping is probably 70 cents per coin.
The term seigniorage applies here. Cool word. Explains its all. Of course, electronic money does not take up volume or weigh anything really or have to be checked for counterfeiting (!!).
The small dollars have some advantage. You can buy mint rolls of them and stash them and maybe the BU numismatic aspect of them will outpace inflation...... |
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jadedragon
Administrator
Canada
3788 Posts |
Posted - 10/07/2009 : 20:10:09
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| I number of us tried this (I ran into issues and was not successful). No fraud, just a good way to get the dollar coins out into circulation. |
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
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TXTim
Penny Hoarding Member
629 Posts |
Posted - 10/07/2009 : 20:52:50
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The teller was just relaying his story to me and I agree there is no fraud. There are 5% cash back cards out there that make it really worthwhile.
I think the bank (Capital 1), is hip to the idea and doesn't want to waste resources sending a lot of small dollars back to the fed each week. It wouldn't surprise me that they stop accepting these deposits and this is why. |
Beer is my currency. |
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CoinHunter53562
1000+ Penny Miser Member
USA
1805 Posts |
Posted - 10/07/2009 : 21:44:50
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| Good way for people with poor credit to build it back up as well. Order the coins at face value on your credit card, deposit all of them in your bank, and pay off that amount against your credi card. I see no fraud with this whatsoever. |
My hobby: collecting real money 1 copper cent or nickel at a time.
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Robarons
Penny Hoarding Member
USA
522 Posts |
Posted - 10/07/2009 : 23:15:14
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| Its only fraud when you make money off the government. Anything is else is good business. |
Robber Baron= Robarons |
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barrytrot
Administrator
USA
721 Posts |
Posted - 10/08/2009 : 08:28:18
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quote:
Originally posted by CoinHunter53562
Good way for people with poor credit to build it back up as well. Order the coins at face value on your credit card, deposit all of them in your bank, and pay off that amount against your credi card. I see no fraud with this whatsoever.
Great thought CoinHunter!
This is finally something that anyone can use to improve their credit.
I'm sure it is not a huge "boost", but showing a pay-off on revolving debt is definitely worth a few points! |
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 10/14/2009 : 18:24:45
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What happens when those who buy the dollar coins from the mint via a 5% cash back credit card take the coins out of the wrappers and deposit them?
Is it fraud to dump loose dollar coins in the bank's coin counting machine for deposit?
I suspect this is what will happen if the banks start to refuse rolled dollar coins, their coin counter machines will get quite a workout.
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Bluegill
1000+ Penny Miser Member
USA
1964 Posts |
Posted - 10/14/2009 : 19:06:42
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quote:
Originally posted by pencilvanian
What happens when those who buy the dollar coins from the mint via a 5% cash back credit card take the coins out of the wrappers and deposit them?
Is it fraud to dump loose dollar coins in the bank's coin counting machine for deposit?
I suspect this is what will happen if the banks start to refuse rolled dollar coins, their coin counter machines will get quite a workout.
Nope, not at all. There is absolutely no fraud of any kind happening with people doing this.
As far as seigniorage, are these "government" numbers? Are they accurate or are they cooked like all other government numbers?
Aside from the cost of minting the actual coin, who's paying to ship these out to be wrapped and then shipped back? Coin wrapping companies don't wrap for free, nor do trucking companies ship for free. Who is eating the C.C. fee? Who is paying for the free shipping?
Is there still seigniorage left over after all said and done for the Government to still be in the black?
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jadedragon
Administrator
Canada
3788 Posts |
Posted - 10/15/2009 : 12:23:19
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quote:
Originally posted by Bluegill
quote:
Originally posted by pencilvanian
What happens when those who buy the dollar coins from the mint via a 5% cash back credit card take the coins out of the wrappers and deposit them?
Is it fraud to dump loose dollar coins in the bank's coin counting machine for deposit?
I suspect this is what will happen if the banks start to refuse rolled dollar coins, their coin counter machines will get quite a workout.
Nope, not at all. There is absolutely no fraud of any kind happening with people doing this.
As far as seigniorage, are these "government" numbers? Are they accurate or are they cooked like all other government numbers?
Aside from the cost of minting the actual coin, who's paying to ship these out to be wrapped and then shipped back? Coin wrapping companies don't wrap for free, nor do trucking companies ship for free. Who is eating the C.C. fee? Who is paying for the free shipping?
Is there still seigniorage left over after all said and done for the Government to still be in the black?
Cost to mint a dollar coin is only pennies and that includes boxing and wrapping it. The Mint is paying to distribute the coins (they use a private contractor) anyway. The only difference is the method used.
Normally the mint loads tractor trailers with coins and delivers them to armor car companies across the country. Then the coins are distributed to banks and directly to large retailers by the armor cars.
I suspect the banks and retailers don't order many Pres$s. In the dollar program the mint is trying to get around that "problem" of lack of product demand by drop shipping coins for free direct to interested parties. This way the coins get out into circulation via interested members of the public.
The Pres$ will never get much acceptance until the dollar bill is discontinued. In Canada we have both a dollar coin (same size as the Pres$) and a slightly larger bi-metal two dollar coin that are both widely used. Unlike the US $2 bill, Canada's old $2 bill was widely used in commerce. |
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony
Passive Income blog |
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PennySaved
1000+ Penny Miser Member
USA
1720 Posts |
Posted - 10/16/2009 : 14:06:42
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| I ordered the $1 coins once from the mint. The only bad thing was the mail man left them on the front porch and no one was home. Guess they don't put insurance on the package when they ship them. With mail theft the way it is, that is the only thing that makes me nervous about ordering them. |
SELLING COPPER PENNIES 1.4X FACE SHIPPED......“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principles of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale” Thomas Jefferson |
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Corsair
Penny Hoarding Member
811 Posts |
Posted - 10/16/2009 : 19:09:17
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quote:
Originally posted by PennySaved
I ordered the $1 coins once from the mint. The only bad thing was the mail man left them on the front porch and no one was home. Guess they don't put insurance on the package when they ship them. With mail theft the way it is, that is the only thing that makes me nervous about ordering them.
Thanks to this thread, I ordered my first two boxes a week or so ago. They were supposed to be delivered on Thursday, but no one was here to pick them up, so they took them back and tried again the next day. Weird how it's different for you and me. |
So long, Realcent 1. Come visit us at Realcent.org! |
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wolvesdad
1000+ Penny Miser Member
USA
2164 Posts |
Posted - 10/16/2009 : 20:25:03
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| Side point: you don't get ANY points for paying off a balance on a credit card. Credit score points I mean. You only build good credit by making the payment. They make absolutely no differentiation between paying off the balance in full and just making the minimum payment! |
"May your percentages ever increase!" |
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PennySaved
1000+ Penny Miser Member
USA
1720 Posts |
Posted - 10/17/2009 : 16:38:08
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Anyone find an error coin when they looked through these?
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SELLING COPPER PENNIES 1.4X FACE SHIPPED......“I sincerely believe that banking establishments are more dangerous than standing armies, and that the principles of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale” Thomas Jefferson |
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chris6084
Penny Collector Member
303 Posts |
Posted - 10/18/2009 : 10:31:23
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| Are talking about the ones without the "IN GOD WE TRUST" ? I have been looking for those, but have not found one. |
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JerrySpringer
Penny Hoarding Member
669 Posts |
Posted - 10/18/2009 : 15:30:14
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| How often can you order the coins via the US mint site for the free shipping? Heck, I'll order once a week if they do not limit how much you can regularly order. The credit card rebate on them would help defray the cost of ordering other stuff from them, like proof sets or a roll of 2009 pennies, etc. |
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Neckro
1000+ Penny Miser Member
Saudi Arabia
2080 Posts |
Posted - 10/18/2009 : 15:51:53
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For this special program:
* The United States Mint pays for standard shipping and handling of domestic orders. Any special handling will be paid by the customer.
* Orders are limited to two boxes ($500) per coin issue.
* Specific coins are available only while supplies last.
* Please allow approximately 1-2 weeks for shipping.
* All sales are final. |
Trolling is an art. |
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Small Dollar Scheme
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