Xorand wrote:If I walk into a grocery store and buy a $50 Starbucks gift card (like I did just the other day), it shows on my AmEx bill as a $50 grocery purchase. There is no additional fee to activate that gift card, I just spend it like normal at Starbucks. On my next AmEx statement, I'll realize an additional $3.00 on my AmEx cash back balance for that purchase.
Now if you want to get fun, here's a scenario we use around Thanksgiving:
- I buy gift cards at Krogers for Christmas presents. Let's say I buy $500 worth. I'll eventually get $30 cash back.
- Starting November 19th, Krogers give you 4X fuel points for gift card purchases. I will then have a 2000 fuel point balance.
- I can use 1000 fuel points to get $1.00 a gallon off of fuel for a maximum of 35 gallons. I own a diesel dually pickup truck with a 38 gallon fuel tank, so lets say I put in 35 gallons of fuel. I just saved $35. I can do that twice (I had 2000 points), so really I can save $70.
- To top all that off, AmEx gives me 3% cash back on fuel purchases (which works at the Krogers fuel station I use). The current diesel price is $3.50 a gallon, or $2.50 with my fuel savings. So my $175 worth of fuel gives me another $5.25 in cash back.