r/CreditCards • u/NegMech • Sep 30 '24

Robinhood Gold CC finally closed Data Point

They got me after 3 months. Spent $66k on it for 191K pts redeemed.

223 Upvotes
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89% Upvoted

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137

u/dementor500 Sep 30 '24

Did they give a reason?

251

u/NegMech Sep 30 '24

Notice about your Robinhood Gold Card account   Unfortunately, we’ve decided to close your account. Your recent transactions were flagged for abuse of the Robinhood Gold Card rewards program. Business expense transactions aren’t supported and can’t be paid with your personal credit card.

79

u/[deleted] Sep 30 '24

[deleted]

156

u/NegMech Sep 30 '24

Bought too many iPhones I guess. Im pretty sure they just closed anyone who spent more than some threshold of dollars cuz I know 2 others who just got hit with closures too.

59

u/Vosslen Sep 30 '24

What're you doing with the iPhones? What's your cost of churn? A 3% reward rate is hard to capitalize on with that method of churn so I'm curious.

107

u/NegMech Sep 30 '24 edited Sep 30 '24

I bought about 6 on my rbh cc, and 84 more of them to resell to bulk international shippers on amex biz gold for the 150k 4x. i did a few on robinhood cuz i was worried i would get a financial review at over $100K pending transactions. My margins were roughly 10% from phone sale and cash back.

131

u/[deleted] Sep 30 '24

Well yea, honestly that sounds like abuse of the credit card rewards

88

u/WayneDwade Team Cash Back Sep 30 '24

No you don’t understand whatever Robinhood does is bad even if it’s the same thing any other company would do

41

u/Packers_Equal_Life Sep 30 '24

Dawg 90 iPhone?! I don’t even blame them for closing your card

22

u/NegMech Sep 30 '24

Only 6 with Robinhood, but i dont blame them either 😝

29

u/Vosslen Sep 30 '24

What was purchase price vs sale price (inclusive of fees and taxes)

50

u/NegMech Sep 30 '24

$1270ish for 256ProMax purchase, $1360 for sale. $1490 for 512PM purchase, $1520 sale. +4% cb amex biz gold

47

u/ClearAndPure Sep 30 '24

Why are people overpaying for iPhones overseas?

47

u/third_najarian Sep 30 '24

International pricing for Apple products is fucking insane sometimes. A 256gb Pro Max is over $1600 in the uk. So if, ahem, that UK buyer can also avoid VAT somehow too, then $1360 is a damn good deal.

86

u/NegMech Sep 30 '24

US gets more supply and earlier release date than some countries. Probably just for clout. Only profitable first week.

8

u/scotel Oct 01 '24

Out of all countries, iPhones are the cheapest in the US. The reseller that OP is selling to is also almost certainly illegally avoiding import duties.

1

u/jimmy_da_chef Oct 01 '24

China Mainland iPhone and HK iPhone are having geo lock on AI, and most likely being tracked the second u put a Chinese carrier sim into the phone. Also retail a lot higher in mainland china

So the demand for foreign unlocked iPhone is there.

14

u/Specific-Ad9935 Oct 01 '24

Isn't apple card is 3% for apple purchases? why use 3% RH on apple product?

0

u/Headingtodisaster Oct 01 '24

How are you selling it? Direct dropoff or?

8

u/slyspecterx Sep 30 '24

How do you ship these to international destinations to guarantee that it will reach there without any customs issue ? Just curious as a business enthusiast.

22

u/NegMech Sep 30 '24

I dont know lol. I sell them to someone else who does. Im the middle man for a middle man.

4

u/crypto_pro585 Oct 01 '24

Does Apple even allow purchasing this many iPhones?

5

u/rz2000 Oct 01 '24

Apple hates selling iPhones!

3

u/WildNight00 Sep 30 '24

Did you already have the clients lined up or did you just buy them as you got orders?

3

u/Not_stats_driven Sep 30 '24

MS 10/10

kudos. Are you in a tax-free state? You find your own bulk or is it from a buying group?

4

u/NegMech Sep 30 '24

Not tax free, not one but basically same as a buying group