A man claims he purchased a skyscraper using his credit card. He points out that the card he was using offers a 1% discount on purchases, and gives him 30 days to pay “which is worth 1%.”
For these calculations to be right, this would have to have taken place in the late 1980s – when interest rates were still high, but after cash back cards were first introduced. While interest rates in the U.S. haven’t hit 12% since 1979, they hit 12% last in Canada in the early 1990s shortly after cash back cards were introduced there.
What’s remarkable is,
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For these calculations to be right, this would have to have taken place in the late 1980s – when interest rates were still high, but after cash back cards were first introduced. While interest rates in the U.S. haven’t hit 12% since 1979, they hit 12% last in Canada in the early 1990s shortly after cash back cards were introduced there.
What’s remarkable is,
- The seller was willing to take a credit card. While card acceptance for many retail businesses is cheaper than cash, a funds transfer for a single large transaction is going to be less expensive than credit cards – by a lot.
- This likely means that he could have just as easily negotiated a lower sales price. That is not always more advantageous.
- Today he could have earned 2% back plus the float!
Man Buys $65 Million Skyscraper With A Credit Card, Earns $1.3 Million - View from the Wing
At 2 transferrable points per dollar, $65 million would translate to 130,000,000 points.
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