A speaker outlines an alleged arbitrage scheme using Shopify's 2.4% fees and Robinhood's 3% cash-back credit card to generate a 0.6% margin. At the card's $25,000 daily spend limit, this yields roughly $4,198 monthly profit after fees, or $68,000 annually if the cash-back qualifies as tax-free.
The infinite money glitch is here. Okay, so Shopify charges 2.4% plus 10 cents on every transaction. So you build a little Shopify store and put a product in there. A Robinhood's new credit card has an unlimited 3% cash back. Surely you see this arbitrage opportunity, right? With a $25,000 limit, if you spent that every day, it'd be like $150 a day. Take away the $299 Shopify monthly fee and the 10-cent swipe fee, near $4,198 a month in profit. But it gets better. It's actually tax-free money because it's a credit card rebate and the IRS does not tax credit card rebates. So that's the equivalent of making $5,700 a month in pre-tax income or an extra $68,000 a year.
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