If you don’t think you’ll meet the spending requirement in the specified bonus time, you can do what’s called 'manufactured spending'. And let’s be real, most of us don’t spend thousands of dollars each month anyway.
In its most basic form, you are just creating ways to spend money without actually spending it. Manufactured spend is most definitely a loophole. It’s completely legal, but obviously not what the banks intended by “spend $3000 in the first three months to earn the sign-up bonus.”
how to purchase the gift card
Large Gift cards ($500 — $3000 value)
Head to this AMEX website. Select whichever gift card you want and select the value. (If I have $2,000 left to spend for a sign-up bonus, I’ll get a $2,000 gift card to pay it all the way off). Be sure to put quantity of “1”. The purchase fee for the gift card is $3.95. Gift cards over $200 are not eligible for standard shipping, so you’ll need to select expedited shipping for $8.95. (bringing your total cost to $12.90 so far)
Put in your info, and be sure you’re paying for the gift card with the credit card that you need to get the bonus for! You can also usually search online for an AMEX gift card promo code that will get rid of either the shipping or card purchasing fee.
Before completing the purchase, be sure you’ve contacted your credit card company or set an expected expense on your credit card account for the exact amount of the purchase. Otherwise, your card company may decline the purchase since it’s a large amount seemingly out of nowhere. Once you’ve done that, complete the purchase. For larger gift cards like this AMEX will call you at some point in the next day or two to verify that you actually did make this purchase. Then they will send you the gift card in the mail. Once you have it, follow the liquidation steps below.
Small Gift Cards ($0 — $500)
Head to this e-gift-card site.
Select the amount and fill out the required info. Complete the purchase by using the credit card you need to get the bonus on.
Since it is an e-gift card, it will come through almost immediately. You will then be able to take the gift card details and use them through the liquidation method listed below.
How to liquidate the gift card
paypal process step-by-step
- Login to Paypal
- Add your new gift card to your Paypal Wallet
- Send money to a trusted person who you have briefed on the process
- Have that person transfer the money from their Paypal account to their bank
- Payoff your credit card bill with your newly added money
paypal method
If you don’t have a Paypal account, create one. It’s free. You’ll also need a spouse, family member, or other significant-other that you absolutely trust to complete this step. Basically, you will be sending money from your new gift card (or e-gift card) to another person. That person will then transfer the money they received to their bank account, and simultaneously transfer that money back to your bank account. You then pay off your credit card bill from your bank account, with the same money you used to buy the gift card (it's like your money takes a digital train around the internet and ends up back at your home station). Some people who do manufactured spending don’t like to do it this way because it costs a little more than the other methods. Personally, this is the only one I use because there’s zero risk (unlike other methods out there) and I can do it all in a matter of minutes from the comfort of my own computer.
why this method costs a little more:
For Paypal, there is a fee to send money as a personal payment using a debit card (aka gift card). The fee in the U.S. is 2.9% plus $0.30 USD of the amount you send. For example, if you send $100.00 USD by gift card, the fee would be $3.20 USD ($2.90 + $0.30).
So in all, you’ll spend a small amount to buy the gift card itself, and then you’ll spend a small amount to transfer the money back to yourself through Paypal. I find it super worthwhile to spend $40-50, not have to leave the comfort of my computer, and still receive a ton of credit card points worth hundreds of dollars. I’ll take that deal anyday.
Check out some adventures we've taken with credit card points!