manufactured spending

Introduction to Manufactured Spending

Great Lakes Brewery in Cleveland, Ohio

Manufactured spending can be defined as spending money without actually spending money. In other words, the credit card company thinks that you have spent the money, but you have not actually spent any cash, as the money was simply transferred to  another form of currency. Manufactured spending is most often used to obtain credit card reward points, either through regular rewards when spending, or bonuses after hitting a certain amount of spending within a time frame.

For example, one form of manufactured spending has been to send money to another party through Amazon payments. When this occurs, the amount will be charged to your credit card, and the money will be made available to the party of your choosing. This is applicable to manufactured spending, as you can simply send the money to a friend, have the friend write you a check for the amount of the spend, and then this money can be applied to the credit card that was used to send the money using Amazon payments. All in all, this results in $1,000 in spending on your credit card without much work at all.

Manufactured spending can be used to hit sign-up bonuses for credit cards that would be out of the range of your regular expenses. For example, the Chase Sapphire Preferred often has a bonus of 40,000 points after spending $3,000 in the first three months. Even if you don’t have enough expenses to reach this spending amount in the time period, manufactured spending can help you reach this goal and you can obtain this lucrative bonus, which is worth upwards of $500 in travel rewards. See this post for some common manufactured spending techniques.

Overall, with some creativity and planning of purchasing, along with manufactured spending, you can be on your way to rewards in the form of free all inclusive travel and cash back.



How to Receive a Vacation at an All Inclusive Resort for Free


One of the best ways to travel these days are by the way of all inclusive stays, because who wants to worry about money on vacation. Like most things however, this type of convenience often comes at a high price. To get around these fees, I was able to take advantage of credit card sign up bonuses to book a room at a Caribbean resort for no charge. This is one of the key items mentioned in my previous post on easy ways to save money. This is because both the room and food are included with the room booking.

Hyatt Credit Card 
The first step in this process was singing up for the Hyatt credit card through Chase. This credit card gives you two free nights upon spending $1,000 within the first three months of opening, which is pretty obtainable by putting regular spending on the card. You can also use methods like Amazon payments, American Express Serve, and gift cards as noted in my previous article on manufactured spending. Once this is done, you will have two free nights to use at any Hyatt hotel in the world, which could have a value of up to $1,000 a night for some of the more luxurious properties. For this post we will focus on the all-inclusive options, but see this post for some other ideas on where the reward can be used.

Hyatt All-Inclusive Properties
Hyatt has recently gotten into the all-inclusive resort game, which is a great thing for those of us who have accumulated Ultimate Reward, Hyatt free nights and Hyatt points. Not only will the reward cover the room, but it will also include all food and beverage during your stay. This is fantastic for a frugal travel as you will avoid the often high costs of food while traveling, as you are often in a tourist area with high prices, which is often the case when you are out of the country.

The property that I will be focusing on is the Hyatt Zilara Cancun, which is a luxurious adult-only all-inclusive resort in Mexico. The Hyatt also has the Hyatt Ziva Los Cabos, which is family friendly. The Hyatt Zilara, with rave reviews on the service, location, and food, which makes it a no brainer for a great vacation. Every room has an ocean view, and the surroundings are paradise. In addition, the rooms hover around $500 per night, which gives you a great value when using your free stays. In addition, you can book rooms for 25,000 points/night by transferring Chase Ultimate Rewards points (sign-up offer) or Hyatt points earned through the card.

Rooms can be booked by calling into the Hyatt Gold Passport customer service, which can tell you availability and book your room very easily. Overall, this is a fantastic value and a reason alone to sign up for the Hyatt Credit Card.

I hope that this post has proved that traveling luxuriously can be obtained on a budget, as the above solution results in two nights at a fabulous all-inclusive property for nothing out of pocket. Hyatt’s entrance into this space is a welcome addition to the hotel scene and is a very reliable way to take advantage of reward points that have been earned through responsible spending.

Easy Ways to Use Manufactured Spending to Meet Your Credit Card Spending Requirements

Credit cards are a great tool when used correctly

Manufactured spending is a great way to meet hefty thresholds for credit card bonuses. As you may be aware, credit cards often run lucrative offers in which a certain number of “points” will be given after the user spends a certain amount within a set time period. This was the case with the Chase Sapphire Preferred card written about in this article, which gives 40,000 points after $3,000 in spending in the three months after card opening. But what if your spending habits do not support this level of spend? This article will give you five ways to meet this spending requirement, without actually spending any more money in the process. This is a process known as “manufactured spending”.

Amazon Payments
Amazon payments is a great way to meet spending requirements on a credit card by sending money to a close friend that also has an Amazon Payments account. The friend can then write you a check for the amount, which can be deposited back into your account and used to pay off the credit card. There is a limit of $1,000 per month that can be transferred, but by doing this for three months, your spending limit can be reached.

American Express Serve
Serve is also a great tool to meet minimum spending requirements. With Serve, you are able to load $200 per day up to $1,000 per month online from a credit card. Once this is done, you can then transfer the money to your bank account, use the Serve card as you usually would a debit card, or even pay off the credit card using the bill payment feature of Serve. As with Amazon payments, this is an easy way to reach a spending limit without actually having to leave the convenience of your home, and results in zero cash outlay and plenty of benefit.

Merchant Gift Cards
This method requires a little bit of planning and legwork, but is a very feasible way of meeting spend requirements if properly planned. As you may have seen, many merchants sell numerous gift cards to both their own and other establishments. By timing gift card purchases for common items to the time period in which your spending needs to be met, you can accelerate the time period in which the threshold is met. For example, buying gas cards in large amounts to meet the requirement. Additionally, online spending portals often offer cash back in addition to the points that you will earn from the credit card signup.  As this is a purchase that would be made anyway, there is little risk that the cards will not be used, but you are able to accelerate your spending to achieve the bonus.

As with any credit card activity, you should always be aware of the potential consequences of your spending and should keep an eye on your credit card activity, but these methods have the potential to meet spending requirements without actually spending. In addition, you should make sure to have your credit score in line before signing up for any additional cards, and know the potential effects on your credit score. See my previous article for the 5 factors of a healthy credit score.

Happy spending!

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Amazon Payments Removing Free $1,000 Monthly Transfers | The Points Guy

This is a very disappointing development, as Amazon Payments could be used to send up to $1,000 per month to a friend on a credit card for free. There is no doubt, however, that there will be other methods of sending money that will pop up.

Amazon Payments Removing Free $1,000 Monthly Transfers | The Points Guy.