A couple years ago, I broke the news that Canadians could manufacture spend by buying non-circulation legal tender (‘NCLT’) coins at the Royal Canadian Mint. Right now, you can get an amazing $2375 in quick and easy manufactured spend through the Mint.
What is Manufactured Spend
Manufactured Spend (‘MS’) is the process of conducting a cash-like transaction that posts as a charge against your credit card. In doing so, you earn points for the purchase and help any minimum spend requirement you might have. Optimally, you would buy a liquid cash product, deposit that into your bank account, and then immediately pay off your credit card.
In the United States, there was a short period where you could buy one-dollar coins directly from the US mint with a credit card. There are stories of folks running over a million dollars doing this before being shut down, earning over a million miles in the process!
Manufactured Spend at the Mint
The Royal Canadian Mint sells NCLT coins at face value: $20 for $20 coin, $25 for $25, $50 for $50, $100 for $100, and $200 for $200. Essentially, you are paying face-value for a coin with the same cash value.
As NCLT coins, these are by law legal tender. While you’re not going to be able to use these coins for daily purchases, most banks are happy to accept them. Notably, I’ve had no problems with RBC and TD. Here’s RBC’s official statement on the acceptance of NCLT coins for deposit:
When numismatic coins are presented for redemption the Sales Unit must redeem them at the face value shown on the coin.
Numismatic coins are legal tender and a service fee is not to be charged.
Note: The coins may have more than face value if negotiated through a coin dealer.
Because it’s the holidays, a number of face-value coins are up for sale. Further, the Mint is trying to clear inventory for the New Year. As a result, you can buy an astounding $2375 of coins with free shipping.
To use this deal, simply add every coin to the maximum number for each face-value coin. The Mint will charge your credit card as a purchase (not a cash advance), and the coins will be shipped for free. Once you receive them, simply take them to the bank, deposit them, and pay off your credit card. That’s an easy 2375 points.
While this can technically only be done once per household, I’ve heard many stories of people simply creating a new Mint account and slightly varying their address (110 Fake St. vs. 110 Fake Street). I’ve run tens of thousands of dollars in MS through the Mint.
Have you ever manufactured spend through the Mint?
If buying NCLT coins, any taxes involve for BC resident?
Nope! Never any tax
Buyer beware. Please read before considering a purchase of coins: https://www.thestar.com/business/2012/07/05/coin_collector_learns_the_difference_between_legal_tender_and_spending_money_the_hard_way.html
Note that article is from 2012. Most banks are well versed in accepting NCLT coins for deposit. RBC and TD are the best. I’m Laurentian and National are bad. Don’t know about CIBC or BMO.
Hi, thanks for the article! Any delays between taking the coins to the bank (assuming they know how to redeem them), and deposit the cash into the account? I doubt HSBC knows how to “redeem” them
Redemption should be right away (like handing bills)
Anyone every order them to a US address and know if they get assessed duty/tax at the boarder?
I does mention “Royal Canadian Mint will now require your SSN or IRS number when you place an order that equals or exceeds US$2,000 in value. This information will be recorded in the US Customs Service computer system for customs purposes only.” but doesn’t clearly indicate if it will be taxed or assessed a duty.
They’re pure silver, so there’s no customs or duty.
Thanks for the reply; I think that I have found sources to back this up. If classified as currency, there should be no duty (https://help.cbp.gov/app/answers/detail/a_id/447/kw/incoming%20parcel%20tax), same with gold, medallions or bullion (https://help.cbp.gov/app/answers/detail/a_id/322/~/importing-gold-coins,-medals,-and-bullion) so I think that I am good.