 Hello everyone, this is financial author Amit Dan of amitdan.com. On this channel you'll find financial travel and more videos just like the one you're watching right now. If you like what you see, please give me the thumbs up and consider subscribing. Hello everyone, this is financial author Amit Dan of amitdan.com. Today I'll talk about manufactured spending and CIBC, Air Canada, AC conversion visa prepaid card. That has recently taken steps to seal manufactured spending loophole. For those of you who do not know what is manufactured spending, manufactured spending is a spending that is not real spending or that is manufactured which would create spending to generate points or reward points and there are various ways of doing that which I'll not go into detail today. However, one of the easiest ways to generate manufactured spending in Canada was the CIBC Air Canada AC conversion visa prepaid card which let you load Canadian currency and then you're able to withdraw Canadian dollars from CIBC ATM machines and that would create a manufactured spending from the prepaid card because the CIBC Air Canada prepaid card allowing to load from other prepaid cards so that type of transactions would create manufactured spending on the other prepaid cards to generate points. Now in the past the initial limit per day to load CIBC Air Canada card was $3,000 in the beginning. Then once they found out that a lot of people are taking advantage of the manufactured spending loophole then they lowered down the daily limit to $2,000 per day which is still fantastic. And then after that once they found out that they couldn't cope up with all these manufactured spending in order to tighten the rules they lowered it to $100 per day. So what it means that you are loading $100 Canadian per day and then you are withdrawing the Canadian dollar amount from CIBC bank machines. So you are able to do $700 per week which is approximately $3,000 per month and in terms of annual spending it would create about $35-$36,000 per year which is still not bad because if you are doing $35,000 per year and if you do it for 2 years then you have enough points for a business cost flight going to Asia which would be $5,000 in value. So that was like a heaven for travel hackers who were using the CIBC Air Canada card to create manufactured spending. So the way it worked was CIBC Air Canada for this great card you are able to load I believe 10 foreign currencies including Canadian dollars and then if you are in Canada you can withdraw Canadian dollar from CIBC bank machines without any cost. So it would be a manufacturer spending heaven to load $100 every month absolutely every day and then take out $700 per week. So you can do it in like you know in 2 times or 3 times every week because CIBC machines I noticed that they have a limit of $400 per transaction. Each transaction whenever you are redeeming Canadian dollars. So now that CIBC Air Canada found out that you know they still cannot go ahead with $100 Canadian per day limit because they are bleeding money paying a credit card fees to other credit cards from which travel hackers were loading the CIBC Air Canada credit card. So they made a new announcement that starting April 13th they will stop totally loading Canadian dollars onto the card and you will not be able to withdraw Canadian currency from an ATM machine or from a CIBC ATM machine. So what it means that there is no more manufacturer spending using this card from March 13th and let's say if you wanted to load foreign currency for example US dollars or Australian dollars or other eligible foreign currency CIBC Air Canada allows you to load and then you try to redeem Canadian dollars from a CIBC ATM machine in Canada then that machine actually will not dispense Canadian dollars bills instead it will dispense US dollar bills. So what it means that you are paying foreign currency transaction cost of transaction fee twice once you load foreign dollar onto the card and then once you take out US dollars. So this is not going to be working anymore or this doesn't make sense paying almost 5% for each transaction to create manufacturer spending. So as a result the loophole has been sealed or which will not be effective available after April and then there will not be you will not be able to do this anymore. I heard that in the beginning people were taking loading and taking out or withdrawing Canadian money like insane from this trade card and there are many people who became points millionaire just by using the loophole existed in the CIBC Air Canada AC conversion trade card. So now it took them for a while to find out what's going on and close the loop at the end but in between lots of people became point millionaires just using this trade card. There are other ways to do manufacturer spending in Canada but they we have very limited opportunities covering to the US where there are more opportunities exist for manufacturer spending. But in Canada CIBC Air Canada trade career was one of the easiest ways to create manufacturer spending but it's all done for now. So this is an update I wanted to provide you please let me know if you have if you have used this trade card or if you have done manufacturer spending using the CIBC AC Canada conversion visa trade card. And this trade card will exist however you will be able to load only foreign currency and once you have left over foreign currency and you return to Canada then you can withdraw that US dollar bills using an ATM machine. So this is not you know it's not going to make sense or it's not going to be applicable to do manufacturer spending anymore. So I do have a review of the CIBC Air Canada trade card which I have done in the past I'll provide you link or links down below and I have another other trade card reviews. So thank you for watching. If you like what you see please give it a thumbs up and consider subscribing and there will be more videos coming up. Thank you.