Direct Ship Program Offers Jackson Dollars

Several months ago, the U.S. Mint began offering Presidential Dollar coins at face value, with no added shipping and handling charges, as part of its initiative to promote circulation of the dollar coins. The Direct Ship Program sells Presidential Dollars in boxes of $250 (10 rolls of $25 each), with a limit of two boxes per order. Note that this isn't two boxes per customer. You can order 10 times if you want (and some of my readers claim to have done so) because people who have cash-back credit cards, the type where you earn 1% or 2% cash back on your purchases, are simply racking up free money. One person even told me he's been taking out "reverse interest" cash loans for his business, because the Mint sells the Direct Ship coins as numismatic items, rather than processing them as a cash advance on the credit card (which usually incurs high percentage fees.) This fellow takes the boxes over to his bank and cashes them in for greenbacks; he doesn't even bother to search them because the bank prefers them rolled up.

I published a review of this service back in June, where I exposed several of the abuses of the Direct Ship Program that were going on. A highly-placed executive at the U.S. Mint told me that my review had actually fostered some discussion among the Mint authorities, although I didn't bother asking what their conclusion was. I figured we'd all know soon enough; either the program would be expanded or eliminated. As it turns out, the Mint doesn't seem too concerned about people abusing the system. I'm sure they've done their due diligence, and despite the occasional small businessman who prides himself on earning an extra $2.50 per shipment on his credit card bonus program, the fact is that most of the coins must be finding their way into circulation or I just can't believe the Mint would continue this program. The point is that they listened when concerns were brought up, and that's progress over the reputation and relationship the Mint has had with our hobby in days of yore. In fact, ever since Ed Moy became director, the Mint has really come a long way in reaching out to, and communicating with the collecting community.

As for the Direct Ship Program, it seems to be here to stay. Several weeks ago, four more Presidential Dollars were added to the sales list, (all of which have already sold out) and the Jackson Dollar became available recently. The U.S. Mint has also kicked off a high-profile marketing test in four U.S. cities, to see if they can promote further circulation of the $1 coins. What the Mint really needs to do, in my humble opinion, is take the money they are spending on these multi-city marketing efforts, and redirect it into hiring a good Washington, D.C. lobbyist. Until we change the law and get rid of the $1 banknote, we will never have a widely-circulating $1 coin.

Have you been using the Direct Ship Program? Do you circulate the coins you get from it, or do you just search them for errors and then haul them to the bank? Share your comments below!