Diners Club cracking down on manufactured spenders

The Diners Club Elite credit card that was launched recently earns 3x points at grocery stores, gas stations and drug stores. So obviously it is a great tool for manufactured spending. At 3x points per $1 spent with no monthly cap on how many points you can earn, Diners Club maybe didn’t do the math correctly.

Diners Club Elite

They probably noticed the large amounts of spending in the bonus categories and after nearly 2 months, it looks like Diners Club is finally closing customers’ accounts and refunding the $300 annual fee. If you have this card then you either want to go all out on spending, or take it slow and use the card for legitimate spending as well, to make it last as long as possible.

I had already seen a few scattered reports in a few blogs regarding the closures, but I wrote the post here after a family friend’s Elite card was closed. He was only using the card strictly on bonus categories.

I didn’t go for this card, but let us know your experience if you have it.

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6 thoughts on “Diners Club cracking down on manufactured spenders

  1. I have had the card since December and going strong. I have diversified my spend through all the bonus categories, but I should probably put some other spend on the card too.
    Where did you hear about the shutdowns for MS?

    • I had seen a few scattered reports in a few blogs, but I wrote the post here after a family friend’s Elite card was closed. He was only using the card strictly on bonus categories.

      I’ll add this to the post as well.

      • did your friend spread around the spread in different categories and stores? also do you know roughly what kind of volume he was doing? BMO was generous with the credit limit, but I am not rolling the limit, because I could see that being an issue.

        • He was doing strictly bonus categories. Not sure how many locations, didn’t get that information. Also, he was doing multiple payments a week (low limit), which might have triggered a review. So definitely not your average MSer

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