AZDude appears to have a keen eye for identifying transparently fraudulent schemes.
Although no exposition is really required, I will briefly explain why the OP's proposed scheme is without a doubt fraudulent. Let's say you are in the business of operating ATMs and your ATMs charge $10 per transaction. Let's further say that you have a checking account with Schwab, which promises to rebate all third-party ATM fees. The basis of OP's scheme is that you use your Schwab card at ATMs that you own and repeatedly pay the $10 fee. You then receive a rebate in full from Schwab. Meanwhile, you still have the money that you paid to the ATM because you actually paid it to yourself.
The reason this is fraudulent is that Schwab's promise is to rebate fees that you actually paid. In this fraudulent scheme, you never actually paid any ATM fee, you just moved the money from one pocket to another, and then demanded that Schwab "rebate" you a fee that you never paid. The ATM transactions are nothing but a sham designed to defraud Schwab.
