One 5% Category You Never See?

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CarefulBuilder14
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Postby CarefulBuilder14 » Fri Aug 08, 2014 10:13 pm

onion wrote:Lets say you've got a Freedom with 5% back at gas stations. Go to a gas station, drop 500 bucks on a Visa gift card, earn 5% on it, which nets you 19 dollars after the 6 dollar activation fee. That makes it a 3.8% reward on a card you can use absolutely anywhere you want.


So how exactly would a Visa network gift card work? Would there be any way to apply it to the outstanding Chase Freedom balance itself? Or it just becomes a prepaid card you can swipe anywhere or use online, but without any additional rewards? Is there a way to track, through Chase, how the gift card is used for budgeting? Or you'd need a separate Visa account? Could you reload a Visa gift card as part of a credit card transaction? Or you'd need to buy a new Visa gift card?
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when


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onion
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Postby onion » Fri Aug 08, 2014 11:58 pm

CarefulBuilder14 wrote:So how exactly would a Visa network gift card work? Would there be any way to apply it to the outstanding Chase Freedom balance itself? Or it just becomes a prepaid card you can swipe anywhere or use online, but without any additional rewards? Is there a way to track, through Chase, how the gift card is used for budgeting? Or you'd need a separate Visa account? Could you reload a Visa gift card as part of a credit card transaction? Or you'd need to buy a new Visa gift card?


It functions as a debit card and is prepaid. You can swipe it anywhere and use it online, and you are correct, there are no rewards since it is just a prepaid debit card. Chase is irrelevant, it was just a bank I used as an example. You could do the same thing with any credit card that gives good rewards anywhere that these gift cards are sold. It would show up on your credit card statement as a $506 dollar purchase. Then, for budgeting, you'd log on to whatever website the gift card uses and you can check your balance. Certain gift cards even allow you to create an account for easy access. Some Visa gift cards can be reloaded, and others can't. I think you still have to pay the fee for reloads, so you might as well just get a fresh card.
FICO TU - 728 - 8/14
FICO EX - 716 - 7/14
FICO EQ - 740 - 7/14

Bank of America Cash Rewards - $2,400
Best Buy - $3,000
American Express Blue Cash Everyday - $8,000
American Express Everyday - $10,000
Discover It Chrome - $500 (AU on fiancée's card, helping her build credit)
American Express Platinum - NPSL
Barclaycard Arrival+ - $3,000
Capital One Yamacard - $11,000

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CarefulBuilder14
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Postby CarefulBuilder14 » Sat Aug 09, 2014 2:20 pm

I take it you really can't dispute charges easily when you make them on a prepaid debit bought with a credit card? If a crook gets the number they could probably drain the card of funds pretty quickly with no (easy) recourse? I'm not sure what the customer service would be like.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

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onion
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Postby onion » Sat Aug 09, 2014 3:42 pm

CarefulBuilder14 wrote:I take it you really can't dispute charges easily when you make them on a prepaid debit bought with a credit card? If a crook gets the number they could probably drain the card of funds pretty quickly with no (easy) recourse? I'm not sure what the customer service would be like.


I'm not too sure about how easy it is to drain a gift card, but it should be about the same as a debit card (which is to say pretty easy). You could get an American Express gift card with your Freedom and get 5% back and then enjoy the benefit of awesome American Express customer service.
FICO TU - 728 - 8/14

FICO EX - 716 - 7/14

FICO EQ - 740 - 7/14



Bank of America Cash Rewards - $2,400

Best Buy - $3,000

American Express Blue Cash Everyday - $8,000

American Express Everyday - $10,000

Discover It Chrome - $500 (AU on fiancée's card, helping her build credit)

American Express Platinum - NPSL

Barclaycard Arrival+ - $3,000

Capital One Yamacard - $11,000

flan
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Postby flan » Sat Aug 09, 2014 11:35 pm

CarefulBuilder14 wrote:I take it you really can't dispute charges easily when you make them on a prepaid debit bought with a credit card? If a crook gets the number they could probably drain the card of funds pretty quickly with no (easy) recourse? I'm not sure what the customer service would be like.


You bought a cash equivalent. It got stolen. Too bad, no body is going to care. (Some cards might cover it under loss protection benefit, but I doubt many do.)

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CarefulBuilder14
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Postby CarefulBuilder14 » Sun Aug 10, 2014 12:05 am

flan wrote:You bought a cash equivalent. It got stolen. Too bad, no body is going to care. (Some cards might cover it under loss protection benefit, but I doubt many do.)


And that's just the reason I'm a little hesitant to do that. I have my cards because all three issuers (Chase, Amex, Discover) have decent-to-great customer service with reasonable rewards. I don't want to deal with bad service, no matter the rewards. Maybe the prospect of using a Freedom or It to buy a re-loadable Discover or Amex gift card is worth further exploration. But would there be some lower-tier service at those companies reserved for gift card users?
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

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onion
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Postby onion » Sun Aug 10, 2014 12:05 am

flan wrote:You bought a cash equivalent. It got stolen. Too bad, no body is going to care. (Some cards might cover it under loss protection benefit, but I doubt many do.)


AmEx seems to be pretty cool with it, check this out.

https://www.americanexpress.com/us/content/prepaid/gift-cards/terms-and-conditions.html

Image
FICO TU - 728 - 8/14

FICO EX - 716 - 7/14

FICO EQ - 740 - 7/14



Bank of America Cash Rewards - $2,400

Best Buy - $3,000

American Express Blue Cash Everyday - $8,000

American Express Everyday - $10,000

Discover It Chrome - $500 (AU on fiancée's card, helping her build credit)

American Express Platinum - NPSL

Barclaycard Arrival+ - $3,000

Capital One Yamacard - $11,000

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CarefulBuilder14
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Location: United States

Postby CarefulBuilder14 » Sun Aug 10, 2014 12:14 am

And, near the bottom of that page:

Can a charge made with the Card be disputed?

No. Purchases made with the Card are similar to those made with cash, in that you cannot "stop payment" or lodge a "billing dispute" on purchases made with the Card. Any problems or disputes you have regarding a purchase should be addressed directly with the Merchant.

And that's what I don't like.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

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onion
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Location: Jacksonville, FL

Postby onion » Sun Aug 10, 2014 1:39 am

CarefulBuilder14 wrote:And, near the bottom of that page:

Can a charge made with the Card be disputed?

No. Purchases made with the Card are similar to those made with cash, in that you cannot "stop payment" or lodge a "billing dispute" on purchases made with the Card. Any problems or disputes you have regarding a purchase should be addressed directly with the Merchant.

And that's what I don't like.


Personally, I'd just be using those gift cards for stuff like Target grocery shopping and whatnot. Not really any stop payments or issues of that sort on groceries. For purchases like electronics, I'd definitely whip out the AmEx, though.

Think about it... How many times do you actually have to do billing disputes, especially on everyday items? Its still a risk, but its one I'd be willing to take if I were using gift cards. I don't bother since I get 3% at grocery stores, 3% on gas, 2% on dining, and 2% on department stores. Maybe if I get a Freedom someday I'll consider it.
FICO TU - 728 - 8/14

FICO EX - 716 - 7/14

FICO EQ - 740 - 7/14



Bank of America Cash Rewards - $2,400

Best Buy - $3,000

American Express Blue Cash Everyday - $8,000

American Express Everyday - $10,000

Discover It Chrome - $500 (AU on fiancée's card, helping her build credit)

American Express Platinum - NPSL

Barclaycard Arrival+ - $3,000

Capital One Yamacard - $11,000

trumpet-205
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Location: CA, USA

Postby trumpet-205 » Sun Aug 10, 2014 2:29 am

One category I like to see 5% on is public transportation. I commute rather than driving, so 5% on bus and rapid transit is most useful to me.
In My Wallet:
Citi Forward (12/2010) | Citi TY Preferred (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)



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