Card Liquidation FAQs - Part 2 · LetsGetFunded Starter (Free)

Card Liquidation FAQs - Part 2

Here are some more things to keep in mind when you are turning your next business card approvals into cash!

#1 - Can I liquidate a Chase business card and send the funds into my Chase business checking account?

The bank will see the similar charge and deposit amounts, regardless of whether a different company is sending the deposit... putting both your checking account and credit card in jeopardy of being closed. Chase (or any other bank) wants to charge the cash advance fees themselves so they are watching for this.

This is an easy problem to avoid however - just make sure to send funds to a different bank and you'll have zero problems (e.g. Chase card to BoA checking).

#2 - can I liquidate personal cards or send funds to a personal checking account?

Yes, this is not a problem.

#3 - is my card at risk of being closed by liquidating?

No in almost all cases - the bank wants you to spend a lot on the card as that's how they make their money. Millions of businesses throughout the country are making large credit card purchases (even $40k-$50k+) every day.

A liquidation transaction may initially get declined and require you to call in to approve the transaction; this is normal fraud prevention. The bank mainly wants to ensure that you are making the purchase yourself and that your card wasn't stolen. Calling the bank in advance to let them know about a large upcoming transaction is often a good practice.

Amex is the one card issuer that is finicky - if you have a brand new Amex card in the first billing cycle, you'll only want to liquidate 40-60% of the credit limit initially and wait until the second month to liquidate the remainder.

Most all other banks won't have a problem with liquidating the full credit limit. A good professional liquidator can help advise you on your specific situation.

#4 - How do I offset the costs of liquidation?

A professional company charges a small fee in addition to standard merchant processing fees as they are shouldering all of the risk in the transactions. It's a small price to pay to avoid all risk to your cards, bank accounts, and merchant processors - as well as gaining the ability to liquidate unlimited dollar amounts.

As an added BONUS you'll usually earn 1.5-2 points per dollar spent on your cards. And as

@Evan Rugen has shared in the past, each point can often be redeemed for 5-10x the value.

Transferring Amex Membership Rewards and Chase Ultimate Rewards points to airline partners for international business class flights is a sweet spot for maximizing value of your points, and transferring Chase points to Hyatt is also valuable.

So if you do your travel hacking right, you can easily cover your entire liquidation cost! Also, the BoA Customized Cash Rewards card offers 3% cash back on business consulting services which is how many liquidators are set up.

Check out Liquidation FAQs Part 1 here: https://www.skool.com/lpf/card-liquidation-tips-and-faqs

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