Transferring money to earn miles?

[Greencheese]

Was talking to a friend the other day and he talked about using amazon payment processing to earn airline miles on "fake" purchases to a friend. Essentially he said he sent the other party the maximum allowed for points and the other person would do the same to him, the result was a purchase for X dollars on each of their credit cards but because they sent the money to each other they didn't spend a dime. Rinse and repeat each month for free miles/points/cash back.

Has anyone heard or had experience doing this? Seems like an easy way to rack up airline miles if this is true or easy, or just lose a friend when they take your cash! Just thought about doing this with another person in order to save up airline miles for trips without giving up my cash back that I enjoy for most of my purchases.

 

[calmloki]

have read about it but it doesn't seem kosher to me. I love taking money from the card companies but meet the minimum spend amounts via paying bills and such. F'rinstance, I don't have a problem prepaying our cell phone bill by $1500 or so to meet a minimum spend and earn 5% cash back with a Chase Ink card.