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Here’s how the deal works: Buy coins from the US mint at face value online using your credit card. The mint is quite generous, and is offering free shipping on direct ship orders. Since these coins are actual currency, they can then be turned in at your bank. Pay off the credit card with the coins, and repeat. There are some credit cards offering 2% cash back on purchases, which on a $5,000 would net you $100 in credit card cash back (Charles Schwab, Fidelity Retirement Rewards cards). Rinse and repeat for a nice income stream.

All good things must come to an end. For those of you who made money on this deal, congratulations. However, be careful. Some credit card issuers are now classifying this as a “cash equivalent” transaction, in which cash advance fees and rates apply. The fees and lack of a grace period are likely a deal breaker. Don’t call the credit card company to find out how the purchase will be categorized. Test the waters with a small initial purchase, where any possible fees will be small. Then, look at your account ledger to see if the transaction posted as a purchase or cash advance.