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 Replies: 79 / Views: 11,893 |
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Pillar of the Community
Canada
2984 Posts |
Quote:
The program was being abused by "manufactured spenders", who would buy as many coins as possible on their credit card for the air miles, cash them in at the bank, and do it all over again the next day. Although there was a limit for online purchases, these limits were not enforced at retail outlets The limits for these coins were strictly enforced during the final year of the program so it is highly doubtful the scenario played out this way. And retail outlets like the Post Office sold them at a premium. The $20 coins sold for $25 while the $100 sold for $110. So it would not make sense to buy them for $25 and redeem them for $20. The Mint Boutiques had face value coins too but there was a limit there as well. Besides, there were only 3 of them countrywide. I doubt the hundreds of thousands sold came came from these 3 outlets. The main damage was done during prior years when there was no enforcement of limits. Especially if you had a rep, you could order as many as you want. A lot of coin collectors used the face value program to climb the tiers of the Master Club. Without it, undoubted many collectors will fall off the MC program. Edited by MoneyPenney
01/07/2017 11:37 pm
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New Member
 Canada
6 Posts |
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Buy them at their PM value (below their face value) in the aftermarket, and flog them off back to the banks for a profit. Why would anybody sell these below face value, if they can cash them in at the bank for face value? Some folks have had trouble redeeming these coins because not every bank teller is familiar with the process. But in the end, legal tender is legal tender, and the face value is guaranteed by the Government of Canada. If anyone out there disagrees, and is willing to sell these coins below face value, please let me know. I'll buy all that you have. |
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New Member
Canada
6 Posts |
@MoneyPenney . . . I have multiples of the entire collection, but one of my favorites is the $100 Orca. I can tell you from my own experience that the Vancouver retail store was more than happy to sell me 3 a day, day after day, until they were sold out.
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Pillar of the Community
Canada
659 Posts |
The $100 Orca is my favourite, too. Beautiful coin.
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Pillar of the Community
Canada
2984 Posts |
@Rob88, The Mint Boutique had a limit of 3 coins day and you could return next day to get more but as the program progressed the store always had face value coins in stock, even months after issuance.
Since the vast majority of Canadians don't live in the three Mint Boutique cities of Vancouver, Ottawa and Winnipeg, most coins sold are from online orders rather than in person
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Pillar of the Community
United States
1699 Posts |
I believe this was one of the same reasons for canceling the Presidential dollar direct-ship program in the US. People were buying incredible amounts of the dollars for the credit card rewards. And now nobody uses them!  |
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Pillar of the Community
Canada
2845 Posts |
Quote:One TD Bank branch manager told me that I'd have to wait 3 weeks for the RCM to verify the coins before they would deposit the amount into my account. This is an act to mitigate counterfeit coin from being redeemed. It's impossible for bank tellers to become proficient in determining the authenticity of all the various types of XforX. Can you imagine what utter nonsense if every few months a different type of Cdn $20, $50 or $100 banknote was issued? Rob88, what the source of your information that cancellation pertains to "manufactured spenders"? This was a known issue in the US regarding collector dollars even before RCM launched the Face Value program (can't find the link, probably what ErrorCoins is referring to). Lastly, no public communication whatsoever from RCM aside from pulling the sale ads. No Hurry to tell customers what's happening. Edited by wildflowerAB
01/08/2017 06:11 am
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Pillar of the Community
Canada
3733 Posts |
So why would the RCM issued box for the 20-4-20's. only have 20 slots..i am sure I said to myself how come only 20 slots, where are the new coins going to fit..with the series being over, there are 25 coins. even if you don't put the coloured ones in , the regular issues won't fit either.? |
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Valued Member
Canada
194 Posts |
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where are the new coins going to fit Quote:
there are 25 coins. I also asked my rep about this and his response was that there is no plan for new boxes to fit the extras. But I'm sure that if enough people ask about a bigger box the RCM will come up with a new modified box to fit all of them or a smaller to fit the 5  ...for xxxx amount of $$$$. New way to make extra money.  |
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Pillar of the Community
Canada
644 Posts |
Someome at the Mint did not think that box through and it triggers my OCD LOL
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Pillar of the Community
Canada
5324 Posts |
The US Mint just resolve their problem with not accepting credit cards for bulk orders same as the RCM only accepts bank drafts for bulk orders. The few enterprising US collectors that caused the change, it's a lot of work for 1 to 2% return. Banks generally never lose in any transactions, they are paid a generous fee to redeem, my guess the RCM doesn't care if fake but if so the bank will debit your account latter. |
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Pillar of the Community
Canada
1505 Posts |
Too bad, but kind of happy in a way.
I like having complete sets (in this case x2), but it was beginning to be a significant amount of money sitting around for coins that I was really starting not to like (comics and movies), nature and canadiana were usually good. I really like the funny winter ones, they made me laugh and the facial expressions/actions were great. I wonder how this program would have gone with a slight premium, even 10%, removes the incentive for credit cards and recovers some of the costs for postage. I might have purchased the set at 20 for 22, but would skip based on the post office price of $25.
I can see why people would abuse the program, depending on your card/reward preference, you can yield 5-6% value for rewards, if you managed $15-$20k spend a year not a bad return.
In some ways I am surprised this lasted as long as it did, the incentives were ripe for abuse from a customer perspective and probably from the sales rep side as well (compensated based on sales/volume). I hope the same fate does not fall on the FV circulation coin program. But I could see why they would ditch it as well.
I doubt it, but maybe this will increase the value in the aftermarket, hopefully the mint will release the final return values at some point. I might dump one set at the bank, in case they do decide to demonetize.
Edited by purelywasted
01/08/2017 4:37 pm
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Pillar of the Community
Canada
5324 Posts |
Just curious what normal credit card offers 5 to 6% reward?
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Pillar of the Community
Canada
1571 Posts |
These coins will likely never be rare. There's simply too many out there. I proudly cashed in all my $x for $x coins. They are virtually the only coins in my collection that have held their value. I needed money after an injury and getting laid off from work and these coins were the only ones that I could get my money back on. I listed them on various buy and sell sites and went to several coin shops in an attempt to keep them in hands of collectors. Shops were offering less than face value and no one was interested on buy and sell sites. These $x for $x coins were exploited by many because the mint pumped out so many, so quickly, with no limits (if you had a rep), that it was tempting by many to take advantage of the loop hole. Nothing illegal was done. I have no issue with people turning them in. The mint's greed came back to bite them in the butt. When reps were selling 20+ of each design to MC members, what did they expect to happen? Surely they didn't assume there was many collectors that want dozens of the same coin. What they should've done, is made them easier to spend, and more people would have bought them, and they could've been used in circulation, with none being returned to the RCM. |
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Pillar of the Community
Canada
1505 Posts |
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Just curious what normal credit card offers 5 to 6% reward? RBC Avion or some of the Amex gold cards. They transfer points to various frequent flyer programs, sometimes with a bonus. You then use the points for high value flights (expensive routes or business class). But you have to do the research ahead of time, as different programs have different costs/benefits and it will depend on where you are located and what your flying pattern is like. I recently booked a red-eye flight to the US and wanted a lay flat seat. 25k points, flight cost at time of booking $1800. One of many examples. It is not everyone's cup of tea, but it something I value and receive a good reward for it. Others prefer a 1% or 2% cashback, I like flights. Economy often yields around 2-3%. |
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Replies: 79 / Views: 11,893 |
First Page
Posted 01/07/2017 11:36 pm
