Ok. I want to make an actual discussion on this, and also be told why I’m an idiot.
Today I attended a bachelor party, and on the way I purchased a 100$ gift card. Using the Coinbase card, I immediately got 4$ back. This has got me thinking all day; why can’t I use the Coinbase card to purchase a large amount of VISA gift card currency?
Hear me out. I know that there is KYC involvement with Coinbase, so it would probably flag me immediately once I purchased the max amount of a VISA gift card (15,000$).
I have purchased on Coinbase and Coinbase PRO using a prepaid VISA in the past. I don’t know if it’s still a thing.
My theory is, if I used my Coinbase card to purchase 15k$ worth of a VISA gift card, collected the 4% cash back in crypto (600$), then turned around and put that 15k back into Coinbase using the 15k VISA prepaid card to buy USDC coin which is has no fee, shouldn’t that work?
I’m not a lawyer myself or a financial advisor, so I’m not sure what rules that would break. I also know that if there’s an easy way to exploit and make money, you won’t get away with it unless you have a lot of money to begin with.
I AM going to test it tomorrow with a smaller amount, I just want to know what problems I may face?
Edit: another option is to transfer VISA prepaid gift card to PayPal account. Transfer PayPal to my bank. Continue purchasing from ACH.
Edit 2: I’m going to sleep and see what happens. I hope I didn’t get flagged by the FBI and have all my assets seized and be left with some moons from some upvotes.