Disclosure: The Points Pundit receives NO compensation from credit card affiliate partnerships. Support the blog by applying for a card through my personal referral links. This article is meant for information purposes only and doesn’t constitute personal finance, health or investment advice. Please consult a licensed professional for advice pertaining to your situation.


Just last week, I wrote about how Amex shut down a few customer accounts for using the PayPal Key trick to manufacture spend. However, it seems like they’re not the only ones cracking down. As per Doctor of Credit, a customer took a picture of a memo circulated to employees, instructing them to ban manufactured spending activities at Walmart.

Manufactured Spending Ban

The memo outlines that the new guidelines will go into effect from December 19th onwards. What’s striking is how clear the verbiage is in terms of mentioning words like manufactured spending and churning.

Manufactured points or rewards points churning is the practice of using a credit card or debit card that earns rewards to buy cash like products (Money Orders, Gift Cards, Prepaid Cards, Bill Payment), and then using those cash like products to pay off the credit card balance or deposit them directly into their bank account.

The memo states operational challenges as the main cause for shutting this down. However, it does seem like the ban could well be driven due to risks pertaining to activities that may seen akin to money laundering.

This activity creates significant customer service and operational impacts for our stores due to the lengthy nature of the transactions. As a result, Walmart has decided not to allow manufactured spending transactions. If you become aware that a customer is engaging in Manufactured Spending transactions, that activity should be stopped.

The last part lays it out pretty clearly by instructing employees not to process any such transactions at their stores.

If you think you’re witnessing manufactured spending you should decline to process the transaction.

The Pundit’s Mantra

For many, this was a great way to generate miles and points on their cards. Unfortunately, it seems like this avenue will be gone for good.

Like many things in this hobby, we often see a few doors close and new ones open. I’m hoping that’s the case this time as well.

Hat Tip to Doctor of Credit


The Points Pundit loves these newly relaunched Chase credit cards!

Firstly, they offer you a 0% APR for the first 15 months.

Secondly, they have no annual fee and have a lucrative welcome bonus of $200 or 20,000 Ultimate Rewards points after you spend $500 in the first 3 months.

Moreover, you can earn up to 60,000 Ultimate Rewards bonus points in the first year if you maximize the bonus points categories.

They’re packed with brand new benefits and bonus points categories.

Overall, a great option to carry in your wallet for everyday spend!

Apply Now

(Chase’s 5/24 rule may prevent you from getting approved for the card)


Never miss out on the deals, analysis, news and travel industry trends. Like us on Facebook, follow us on Instagram and Twitter  and get the latest content!