Mint stops accepting debit and credit card payments for purchase of dollar coins through Direct Ship

[Tom Wayne]

http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?langId=-1&storeId=10001&catalogId=10001&identifier=8100

Circulating $1 Coin Direct Ship Rolls

The United States Mint has eliminated the credit and debit card
purchase of $1 Coins through its Direct Ship Program effective July
22, 2011. Customers who wish to purchase $1 coins through the Direct
Ship Program can still do so by wire transfer, check, or money order.
Customers who wish to purchase the coins by wire transfer may fax
their order to: (202)756-6585. Customers interested in purchasing by
check or money order may do so by writing to:

United States Mint
PO Box 71192
Philadelphia, PA 19176-6192

Please download the order form and follow the instructions provided on
the form. (Order Form).

The Mint has determined that this policy change is prudent due to
ongoing activity by individuals purchasing $1 coins with credit cards,
accumulating frequent flyer miles, and then returning coins to local
banks. Local banks, in turn, returned coins to the Federal Reserve.
While not illegal, this activity was a clear abuse and misuse of the
program.

The Mint has undertaken several aggressive internal and external
actions to mitigate this issue, including restricting chronic and
repeated use of credit cards, contacting customers who frequently
placed large numbers of orders to ensure they were using the coins for
legitimate business purchases, and other measures. While these
measures eliminated a significant amount of misuse in the program, we
believe some abuse still exists. Eliminating the credit and debit card
purchase of the $1 coin is the next step in our efforts to root out
abuse in this program and ensure it is better targeted toward
fulfilling its intended purpose�which is to get the $1 Coin into
greater circulation.

Thank you for your understanding and your continued support of the $1
coin program.

The United States Mint

22 July 2011/12 pm

[Frank Galikanokus]

Do you think that the mint was being pressured to do this by the credit card companies?

I do.

JAM

[Michael Benveniste]

On 7/27/2011 11:15 AM, Frank Galikanokus wrote:

> Do you think that the mint was being pressured to do this by the credit card companies?
>
> I do.

I don't. I'm certain the credit card companies were collecting more
in fees from the Mint than they were paying out in rewards.

I think that the publicity of the 'loophole' reached a critical mass
and some pointy-haired-boss at the Mint got embarrassed and/or realized
what would happen during the next release window.

--
Mike Benveniste -- (Clarification Required)
Its name is Public opinion. It is held in reverence. It settles
everything. Some think it is the voice of God. -- Mark Twain

[Bremick]

"Frank Galikanokus" <FrankGal...@nospam.net> wrote in message
news:4E302B9D...@nospam.net...

>> fulfilling its intended purpose-which is to get the $1 Coin into

>> greater circulation.
>>
>> Thank you for your understanding and your continued support of the $1
>> coin program.
>>
>> The United States Mint
>>
>> 22 July 2011/12 pm
>
> Do you think that the mint was being pressured to do this by the credit
> card companies?
>
> I do.
>
> JAM

I'll bet the national publicity had something to do with it, too.

[Frank Galikanokus]

Michael Benveniste wrote:
>
> On 7/27/2011 11:15 AM, Frank Galikanokus wrote:
>
> > Do you think that the mint was being pressured to do this by the credit card companies?
> >
> > I do.
>
> I don't. I'm certain the credit card companies were collecting more
> in fees from the Mint than they were paying out in rewards.
>
> I think that the publicity of the 'loophole' reached a critical mass
> and some pointy-haired-boss at the Mint got embarrassed and/or realized
> what would happen during the next release window.
>

They would make a profit. How is that a bad thing.

JAM

[Some Guy]

"Frank Galikanokus" <FrankGal...@nospam.net> wrote in message

news:4E317520...@nospam.net...

The Mint was lsoing money on the shipping for every bag they sent out. How is
that making a profit?

[Mike Benveniste]

On 7/28/2011 11:17 AM, Some Guy wrote:

>> They would make a profit. How is that a bad thing.
>

> The Mint was losing money on the shipping for every bag they

> sent out. How is that making a profit?

In a word, Seigniorage. The estimates I've seen for the "all-in"
cost of producing a dollar coin range are in the 30-35 cent range.
The Mint allowed people to buy them at about 98-99 cents each. That
still leaves plenty of room to pay for shipping and credit card fees.

But that same profit margin also created an arbitrage opportunity
for the buyers, who could immediately sell them for 100 cents at
no risk. The recent publicity stressed that part of the story and
pretty much ignored the seigniorage, in part because "billion" is a
newsworthy number. Hence the embarassment.

Had the mint continued the policy after this publicity, the next
offering would have created a web "flash crowd" and sold out as
fast as the site slowdowns and crashes would permit.

[Frank Galikanokus]

Thanks Mike!

You saved me a lot of frenzied typing.

JAM

[Some Guy]

You are, once again, incorrect.

"Mike Benveniste" <m...@murkyether.com> wrote in message
news:99dk8p...@mid.individual.net...

[Phil DeMayo]

On Jul 28, 10:41 am, Frank Galikanokus <FrankGalikano...@nospam.net>
wrote:

< snip >

Bring back Cosmo Iacovazzi

[Peter]

a. not aware that he had died
b. bring him back as a ... what?

[Phil DeMayo]

Just a joke....that was one of the pseudonyms that JAM sometimes used.

Being a fan of Yale fullback Chuck Mercien back in the mid 60's, I
thought I was the only rcc'er who might actually know who Cosmo was.

Imagine two Ivy League backs 1-2 for the NCAA rushing title.

[Frank Galikanokus]

Um, maybe. I don't remember using Cosmo Iacovazzi.

Moses Horwitz

Adolph Menjou

Joe Boat

JAM