[jser]

I believe that Amazon Payments is the only system that lets you pay someone with a credit card, although it's limited to $1,000/month (otherwise people abuse it, sending cash to each other to rack up points on their credit cards).

[cstrat]

I thought that there were now ways for payment processors to flag that a transaction is not supposed to earn points? (eg. balance transfers, cash withdrawals etc...)

Otherwise I could deposit $10,000 from my credit card into my on-line gambling wallet, then withdraw it, repeat...

[eigenvalue]

The better example is the scam people had going for a while where you could buy $1 commemorative coins (e.g., http://en.wikipedia.org/wiki/Sacagawea_dollar ) from the US Treasury for $1.00, with free shipping (the mint made many more of them than the demand, and wanted to get rid of them). Some people bought $100k worth of coins on an Amex card and kept the miles (only problem with that is depositing a zillion coins with local banks). That's now been shut down if I'm not mistaken.

[encoderer]

I challenge you to find a website that will let you charge $10k into an online gambling account from a credit card. And any that do exist will charge fees higher than credit card rewards in most scenarios.

But yes, you also will not earn points on balance transfer transactions. But they typically are processed via ach.

[cstrat]

You're right, I haven't tried to deposit more than about $1000.... however I could just do that over and over again.

[encoderer]

With a credit card? Which site? To my knowledge this did not exist. Discount fees would cost them 2% at least.

[neilc]

I believe Amazon Payments charges 2.9% + $0.30 per transaction, which would not make it an effective way to rack up reward points.

[codex]

What about PayPal?