Author Topic: Where to make tiny credit card transactions?  (Read 17397 times)

rvg

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Where to make tiny credit card transactions?
« on: May 04, 2016, 01:26:45 PM »
Hi - my local bank has an offer that you'll earn 2% APY on balances under $10,000. To take advantage of this all you need is an automatic debit once a month, and to use their debit card 12 times every month.

My question is where can I make 12 tiny (less than $1) transactions every month so I can earn interest on my emergency fund? (this will leverage out to over $100 per year in interest as I have around $6000 in my current, no fees account)

Here's a link to the details:

https://www.fncb.com/personal_checking_lp.asp

Is this worth it or is a 1% interest savings account better?

bb11

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Re: Where to make tiny credit card transactions?
« Reply #1 on: May 04, 2016, 01:28:15 PM »
Why not just use the debit card for normal purchases?

rvg

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Re: Where to make tiny credit card transactions?
« Reply #2 on: May 04, 2016, 01:31:14 PM »
Why not just use the debit card for normal purchases?

Currently getting 2% cash back on my Citi DoubleCash card and most of my regular purchases are $50+. So I see ~$10 a month in cash back from that.

johnny847

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Re: Where to make tiny credit card transactions?
« Reply #3 on: May 04, 2016, 01:34:49 PM »
Firstly, I'd recommend using a different bank (or in this case, a credit union), such as CCU, which offers more interest (3% APY on balances under 10k in this case).

Secondly, I send a friend money with Square Cash via my debit card, and he sends it back later (he also has an account).
So get a partner in crime, one who ideally would sign up for a rewards checking account as well.

Vanguards and Lentils

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Re: Where to make tiny credit card transactions?
« Reply #4 on: May 04, 2016, 01:35:57 PM »
The method I've learned is to reload your amazon gift balance $0.50 at a time (which is the minimum). This would work if you shop at amazon anyway.

Otherwise I would split up one grocery store purchase into individual items at the self-checkout, assuming it's not busy.

SomedayStache

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Re: Where to make tiny credit card transactions?
« Reply #5 on: May 04, 2016, 01:40:09 PM »
My bank requires 10 transactions to get the better APR.

Therefore I use my debit card for any purchase that is less than $10.  Once I've hit the 10 transactions I put my debit card away and don't use it for the rest of the month.

If it's nearing the end of the month and I'm a few transactions short I'll go through the self checkout lane at Walmart and ring up my items separately until I've reached the transaction number I seek.

rvg

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Re: Where to make tiny credit card transactions?
« Reply #6 on: May 04, 2016, 01:45:59 PM »
The method I've learned is to reload your amazon gift balance $0.50 at a time (which is the minimum). This would work if you shop at amazon anyway.

Otherwise I would split up one grocery store purchase into individual items at the self-checkout, assuming it's not busy.

I did think of this, the grocery stores around here are pretty busy usually.

Firstly, I'd recommend using a different bank (or in this case, a credit union), such as CCU, which offers more interest (3% APY on balances under 10k in this case).

Secondly, I send a friend money with Square Cash via my debit card, and he sends it back later (he also has an account).
So get a partner in crime, one who ideally would sign up for a rewards checking account as well.

Excuse my ignorance but if I had to add cash to this account, wouldn't I need to deposit it at a local bank, write a check to myself and deposit the check to CCU on mobile?

My bank requires 10 transactions to get the better APR.

Therefore I use my debit card for any purchase that is less than $10.  Once I've hit the 10 transactions I put my debit card away and don't use it for the rest of the month.

If it's nearing the end of the month and I'm a few transactions short I'll go through the self checkout lane at Walmart and ring up my items separately until I've reached the transaction number I seek.

There's no self-checkout at my local walmart, and also usually only 2-3 registers open when I'm there. Small town problems :/

frugaliknowit

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Re: Where to make tiny credit card transactions?
« Reply #7 on: May 04, 2016, 01:48:21 PM »
BTW, you can probably find better yields and larger maximums here:  Kasasa.com

What I do is carefully follow the statement cycles.  I write them on an envelope (4/25-5/24, 5/25-6/24, etc...), then place a checkmark next to the statement cycle after each purchase along with the receipt.  When I reach 12, I stop until the next statement cycle.  I then keep verifying with the online statement to make sure I am on track.

I don't think "less than a dollar" is realistic.  Just use the debit card for smaller purchases (maybe <$10).  It's not going to cost you that much in points you would otherwise earn on other cards.

johnny847

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Re: Where to make tiny credit card transactions?
« Reply #8 on: May 04, 2016, 01:53:33 PM »

Firstly, I'd recommend using a different bank (or in this case, a credit union), such as CCU, which offers more interest (3% APY on balances under 10k in this case).

Secondly, I send a friend money with Square Cash via my debit card, and he sends it back later (he also has an account).
So get a partner in crime, one who ideally would sign up for a rewards checking account as well.

Excuse my ignorance but if I had to add cash to this account, wouldn't I need to deposit it at a local bank, write a check to myself and deposit the check to CCU on mobile?

Yes, you would. But considering you never mentioned that, and that most people these days, at least those who aren't paid in cash by their jobs (which is pretty rare), rarely need to deposit cash, I recommended CCU.

If you want to sign up for Square Cash, I can refer you and once you've sent $50, we'll both receive $5.

Dictionary Time

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Re: Where to make tiny credit card transactions?
« Reply #9 on: May 04, 2016, 01:55:18 PM »
You could also do a split pay.

"I need to put $1 on my first card and $57 on the second card."

Most cash registers will let you do this.

I usually do a pack of ramen at a time at the self check out.

If sco isn't available, and lines are long, I guess you have to look at your rate of return.

rvg

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Re: Where to make tiny credit card transactions?
« Reply #10 on: May 04, 2016, 02:04:19 PM »

Firstly, I'd recommend using a different bank (or in this case, a credit union), such as CCU, which offers more interest (3% APY on balances under 10k in this case).

Secondly, I send a friend money with Square Cash via my debit card, and he sends it back later (he also has an account).
So get a partner in crime, one who ideally would sign up for a rewards checking account as well.

Excuse my ignorance but if I had to add cash to this account, wouldn't I need to deposit it at a local bank, write a check to myself and deposit the check to CCU on mobile?

Yes, you would. But considering you never mentioned that, and that most people these days, at least those who aren't paid in cash by their jobs (which is pretty rare), rarely need to deposit cash, I recommended CCU.

If you want to sign up for Square Cash, I can refer you and once you've sent $50, we'll both receive $5.

I neglected to mention I need to deposit cash 2-3 times per month into my checking account. I think Amazon & CCU is probably my better bet, and when I do need to move cash, deposit it into my current account and shift it over to CCU with a check. (Doing the math...3% on 5k is $150/yr, $72 a year into amazon credit is worthwhile since I shop there fairly regularly for necessities.) Also was trying to avoid irritating people at registers as there are usually lines wherever I spend money here. Thanks all for the help.

rvg

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Re: Where to make tiny credit card transactions?
« Reply #11 on: May 04, 2016, 02:08:08 PM »
Firstly, I'd recommend using a different bank (or in this case, a credit union), such as CCU, which offers more interest (3% APY on balances under 10k in this case).

Secondly, I send a friend money with Square Cash via my debit card, and he sends it back later (he also has an account).
So get a partner in crime, one who ideally would sign up for a rewards checking account as well.

Just to clarify, wouldn't this mean you'd need to use the card at a register (in person) to receive the 3.09% APY?

- Complete at least 12 Debit/Check Card point-of-sale purchases (transactions must be made without using your personal identification number (PIN) to count toward the minimum of 12 and must post and clear your account as a credit transaction on or before the last day of the calendar month)

johnny847

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Re: Where to make tiny credit card transactions?
« Reply #12 on: May 04, 2016, 02:12:09 PM »
Firstly, I'd recommend using a different bank (or in this case, a credit union), such as CCU, which offers more interest (3% APY on balances under 10k in this case).

Secondly, I send a friend money with Square Cash via my debit card, and he sends it back later (he also has an account).
So get a partner in crime, one who ideally would sign up for a rewards checking account as well.

Just to clarify, wouldn't this mean you'd need to use the card at a register (in person) to receive the 3.09% APY?

- Complete at least 12 Debit/Check Card point-of-sale purchases (transactions must be made without using your personal identification number (PIN) to count toward the minimum of 12 and must post and clear your account as a credit transaction on or before the last day of the calendar month)

No, it doesn't. I've been using Square Cash for months and been getting the 3% rate.

AFAIK, when they say point of sale purchase it is to differentiate it from an ATM withdrawal.

SomedayStache

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Re: Where to make tiny credit card transactions?
« Reply #13 on: May 04, 2016, 02:17:27 PM »
I am very reluctant to use my debit card for any online transactions.  In fact, I refuse to do so and will only use a credit card online.  This means that I would never use the .50 cent Amazon gift card transaction idea if paying with my debit card.  Am I too paranoid?  Maybe - but I don't care.  Since I earn better interest on my checking account than anything else that's where we keep ALL of our cash.  I know that if our debit card info were stolen we would eventually get the money back and get things sorted out.  But in the interim things could get hairy. 

On the other hand I've had a credit card compromised a few times and that's been relatively painless to clean up. 

I'd stick to just using the debit card for reasonably small value, in-person, transactions.

Kaspian

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Re: Where to make tiny credit card transactions?
« Reply #14 on: May 04, 2016, 02:27:44 PM »
I am very reluctant to use my debit card for any online transactions.  In fact, I refuse to do so and will only use a credit card online....

On the other hand I've had a credit card compromised a few times and that's been relatively painless to clean up. 

I'd stick to just using the debit card for reasonably small value, in-person, transactions.

Yes, I don't use my credit card anymore for small transactions unless there's a specific bonus reward attached (e.g., for groceries).  Seems smaller retailers are good at somehow nicking your credit card information but not your debit card.   If it's over $50 (or groceries or gasoline) I'll use my credit card, otherwise debit.  It's just not worth the hassle to have to cancel a credit card and change the PIN number every time a fraud shows up.  And (on the other side) there's NO WAY IN HELL I'll use my debit for an online transaction,

themagicman

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Re: Where to make tiny credit card transactions?
« Reply #15 on: May 04, 2016, 02:37:23 PM »
I did this for an account I had about a year ago. I would just sign onto comcast and make 12 payments through their portal. It let me do it all on one day but they just had to be different amounts. I would make a payment for $.01, $.02, $0.03 ect

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Re: Where to make tiny credit card transactions?
« Reply #16 on: May 04, 2016, 05:04:39 PM »
That all seems like a lot of work for about $120 a year on your $6,000.  Unless you really like doing all those little transactions and worrying about whether you've met the minimum monthly amount.  I would just go for the 1% in a high yield savings account.  Then you may want to look at some credit cards that can give you cash back after meeting the minimum spend amounts.  I just got $100 cash back after spending $500 on a credit card that I used for my normal spending.  It's a lot less work than what you're trying to do.

Tjat

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Re: Where to make tiny credit card transactions?
« Reply #17 on: May 04, 2016, 07:44:05 PM »
For ~$100 a year, I think you've already spent more time than it's worth thinking about it, let alone thinking about it and doing it each month...

nanu

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Re: Where to make tiny credit card transactions?
« Reply #18 on: May 04, 2016, 07:51:26 PM »
As others said - Amazon for $0.50 gift card purchases.
You can also automate it with Amazon allowance, but that requires at least $5/transaction.

However, you might need to change the way Amazon charges your debit card (https://www.amazon.com/gp/help/customer/display.html?nodeId=201132810) or it won't code properly (see here: http://www.doctorofcredit.com/how-to-use-amazon-to-meet-transaction-thresholds/)

Proud Foot

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Re: Where to make tiny credit card transactions?
« Reply #19 on: May 06, 2016, 09:43:07 AM »

Firstly, I'd recommend using a different bank (or in this case, a credit union), such as CCU, which offers more interest (3% APY on balances under 10k in this case).

Secondly, I send a friend money with Square Cash via my debit card, and he sends it back later (he also has an account).
So get a partner in crime, one who ideally would sign up for a rewards checking account as well.

Excuse my ignorance but if I had to add cash to this account, wouldn't I need to deposit it at a local bank, write a check to myself and deposit the check to CCU on mobile?

Yes, you would. But considering you never mentioned that, and that most people these days, at least those who aren't paid in cash by their jobs (which is pretty rare), rarely need to deposit cash, I recommended CCU.

If you want to sign up for Square Cash, I can refer you and once you've sent $50, we'll both receive $5.

I neglected to mention I need to deposit cash 2-3 times per month into my checking account. I think Amazon & CCU is probably my better bet, and when I do need to move cash, deposit it into my current account and shift it over to CCU with a check. (Doing the math...3% on 5k is $150/yr, $72 a year into amazon credit is worthwhile since I shop there fairly regularly for necessities.) Also was trying to avoid irritating people at registers as there are usually lines wherever I spend money here. Thanks all for the help.

Depositing cash shouldn't be a problem.  CCU looks like it is part of the Co-op Credit Union network.  This means you can go into your local Co-op network Credit Union and make the deposit there and it is like you are making the deposit at the credit union holding our account.
https://co-opcreditunions.org/

johnny847

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Re: Where to make tiny credit card transactions?
« Reply #20 on: May 06, 2016, 10:51:21 AM »

Firstly, I'd recommend using a different bank (or in this case, a credit union), such as CCU, which offers more interest (3% APY on balances under 10k in this case).

Secondly, I send a friend money with Square Cash via my debit card, and he sends it back later (he also has an account).
So get a partner in crime, one who ideally would sign up for a rewards checking account as well.

Excuse my ignorance but if I had to add cash to this account, wouldn't I need to deposit it at a local bank, write a check to myself and deposit the check to CCU on mobile?

Yes, you would. But considering you never mentioned that, and that most people these days, at least those who aren't paid in cash by their jobs (which is pretty rare), rarely need to deposit cash, I recommended CCU.

If you want to sign up for Square Cash, I can refer you and once you've sent $50, we'll both receive $5.

I neglected to mention I need to deposit cash 2-3 times per month into my checking account. I think Amazon & CCU is probably my better bet, and when I do need to move cash, deposit it into my current account and shift it over to CCU with a check. (Doing the math...3% on 5k is $150/yr, $72 a year into amazon credit is worthwhile since I shop there fairly regularly for necessities.) Also was trying to avoid irritating people at registers as there are usually lines wherever I spend money here. Thanks all for the help.

Depositing cash shouldn't be a problem.  CCU looks like it is part of the Co-op Credit Union network.  This means you can go into your local Co-op network Credit Union and make the deposit there and it is like you are making the deposit at the credit union holding our account.
https://co-opcreditunions.org/

Oh that's pretty cool. Not that I plan on using that feature anytime soon, but definitely makes this account an easier sell to my friends. Thanks!

TheAnonOne

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Re: Where to make tiny credit card transactions?
« Reply #21 on: May 06, 2016, 12:21:36 PM »
This thread has to be the most tedious way to make $100 lol....


Rosy

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Re: Where to make tiny credit card transactions?
« Reply #22 on: May 06, 2016, 02:39:56 PM »
I like things to be automated and as simple as possible. If I can't make that happen, I've learned to stay away from offers that are too tricky to maintain, because they simply don't mesh with my income and lifestyle.

Last year I needed to do 10 debit card purchases within 60 days for a $300 bank bonus - drove me crazy, because my budget was so tight at the time.
My solution was to divert small monthly payments that were going to my rewards credit card to my new debit card. They were zero interest payments for on-line purchases.
Easy and automatic, plus one hair cut (which was really a mystery shop and I got reimbursed for:) and a couple of Walgreens purchases - voila, not too bad. 

Great tips everyone - I'll have to print a couple for reference in case I have to deal with this mess again.

JLee

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Re: Where to make tiny credit card transactions?
« Reply #23 on: May 07, 2016, 12:57:58 PM »
I am very reluctant to use my debit card for any online transactions.  In fact, I refuse to do so and will only use a credit card online....

On the other hand I've had a credit card compromised a few times and that's been relatively painless to clean up. 

I'd stick to just using the debit card for reasonably small value, in-person, transactions.

Yes, I don't use my credit card anymore for small transactions unless there's a specific bonus reward attached (e.g., for groceries).  Seems smaller retailers are good at somehow nicking your credit card information but not your debit card.   If it's over $50 (or groceries or gasoline) I'll use my credit card, otherwise debit.  It's just not worth the hassle to have to cancel a credit card and change the PIN number every time a fraud shows up.  And (on the other side) there's NO WAY IN HELL I'll use my debit for an online transaction,

I almost never use my debit card - the only places I can think of are ATMs and the Costco food court (if I don't happen to have cash).  I'd much rather deal with a compromised credit card than debit.
« Last Edit: May 07, 2016, 04:08:43 PM by JLee »

Retire-Canada

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Re: Where to make tiny credit card transactions?
« Reply #24 on: May 07, 2016, 01:17:21 PM »
I almost never use my debit card - the only places I can think of are ATMs and the Costco food court (if I don't happen to have cash).  I'd much rather deal with a compromised credit card than debit.

Agreed. My VISA gets jacked about once a year. I have a backup card I don't use except in emergencies and when my primary cash back card is cancelled and I'm waiting for a new one.

The transition to a new card is pretty painless and I'd rather get cash back and expose my VISA info than use my debit card. My debit card gets used when I am at an ATM once a month or so and that's it.

Retire-Canada

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Re: Where to make tiny credit card transactions?
« Reply #25 on: May 07, 2016, 01:18:11 PM »
For ~$100 a year, I think you've already spent more time than it's worth thinking about it, let alone thinking about it and doing it each month...

Definitely. Chasing pennies.

dragoncar

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Re: Where to make tiny credit card transactions?
« Reply #26 on: May 07, 2016, 02:02:26 PM »
I think the question has been effectively answered, but I'll throw his one out there for posterity:

Gas stations.  You can squirt like $.05 of gas in your car at a self service pump.  And that way you get somethin you will actually use.  Downside is you probably can't do 10 of these in a row easily..