Buying gift cards with cash back/rewards CCs

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Vermonster
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Re: Buying gift cards with cash back/rewards CCs

Postby Vermonster » Fri Jun 12, 2015 2:51 pm

Nixon wrote:Hardcore MS = $6,000/yr? Oh me, oh my.


What? No, Hardcore MS = multiple cards, so it could be $12k and up. You can pick an MSer out pretty quick with their card lineup. 2 SM, BCP, Costco TE, EDP, ect. Those are not people that are looking for a little cash back. They're looking at putting 30k+ through those cards. No one reasonably spends that much on actual groceries.
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lobbythis
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Re: Buying gift cards with cash back/rewards CCs

Postby lobbythis » Fri Jun 12, 2015 3:43 pm

Multiple SallieMae's gets you a lifetime membership at MF.

Gamma
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Re: Buying gift cards with cash back/rewards CCs

Postby Gamma » Fri Jun 12, 2015 5:55 pm

For those of you posting MS, sorry to say but you're wrong. MS is pretty much purchasing a gift card (visa gift card) you would then turn to cash to pay back the creditor you used to purchase the gift card. Buying retail gift cards would not accomplish this. You would have to pay it out of your own bank account to purchase the retail gift card.

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CarefulBuilder14
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Re: Buying gift cards with cash back/rewards CCs

Postby CarefulBuilder14 » Fri Jun 12, 2015 6:14 pm

Gamma wrote:For those of you posting MS, sorry to say but you're wrong. MS is pretty much purchasing a gift card (visa gift card) you would then turn to cash to pay back the creditor you used to purchase the gift card. Buying retail gift cards would not accomplish this. You would have to pay it out of your own bank account to purchase the retail gift card.

Exactly.

1. Start with available credit.
2. Buy with credit something you can convert to cash and earn rewards (or interest) on.
3. Use the cash to pay down your balance owed, keeping the rewards/interest as profit.

You can buy a $25 restaurant gift card for $25, but a $25 Visa card will generally have fees added onto it. You generally need a high rate of rewards return to overcome the "fee hurdle". Grocery cards can often beat this hurdle, and many grocery stores sell gift cards.

I don't do MS with my cards, but I have been tempted to open up a card - perhaps with Citi - and do some MS on that. It also wouldn't be the end of the world if I irritated Barclaycard.

Amex, Chase, and Discover cards I'm not doing anything funny with. Those are the ones I plan to keep.

The main hurdle for me has been the fear of the gift card company being hacked and the money being drained away mid-cycle. Fraud protections are awful on those cards, so I'd be stuck.
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Vermonster
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Re: Buying gift cards with cash back/rewards CCs

Postby Vermonster » Fri Jun 12, 2015 9:25 pm

Gamma wrote:For those of you posting MS, sorry to say but you're wrong. MS is pretty much purchasing a gift card (visa gift card) you would then turn to cash to pay back the creditor you used to purchase the gift card. Buying retail gift cards would not accomplish this. You would have to pay it out of your own bank account to purchase the retail gift card.


In general buying gift cards at a grocery store at 6% cash back to be used at places that would normally net 1% cash back is accepted as MS. Purchasing Visa cards negates a lot of your bonus with the almost $5 fee so many try to avoid it.

I know flyer talk is much more into moving money around, with some people reporting over $100k a month in MS. But just because someone doesn't run marathons, doesn't mean they don't run.
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Nixon
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Re: Buying gift cards with cash back/rewards CCs

Postby Nixon » Fri Jun 12, 2015 9:52 pm

Vermonster wrote:
Gamma wrote:For those of you posting MS, sorry to say but you're wrong. MS is pretty much purchasing a gift card (visa gift card) you would then turn to cash to pay back the creditor you used to purchase the gift card. Buying retail gift cards would not accomplish this. You would have to pay it out of your own bank account to purchase the retail gift card.


In general buying gift cards at a grocery store at 6% cash back to be used at places that would normally net 1% cash back is accepted as MS. Purchasing Visa cards negates a lot of your bonus with the almost $5 fee so many try to avoid it.

I know flyer talk is much more into moving money around, with some people reporting over $100k a month in MS. But just because someone doesn't run marathons, doesn't mean they don't run.


Sorry to burst your bubble. But no. This is not MS at all as much as it is a simple optimization of rewards.

MS involves unnatural spend that does not end with a good or service, usually dealing with cash equivalents.
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kdm31091
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Re: Buying gift cards with cash back/rewards CCs

Postby kdm31091 » Sun Jun 14, 2015 7:14 am

Nixon wrote:
Vermonster wrote:
Gamma wrote:For those of you posting MS, sorry to say but you're wrong. MS is pretty much purchasing a gift card (visa gift card) you would then turn to cash to pay back the creditor you used to purchase the gift card. Buying retail gift cards would not accomplish this. You would have to pay it out of your own bank account to purchase the retail gift card.


In general buying gift cards at a grocery store at 6% cash back to be used at places that would normally net 1% cash back is accepted as MS. Purchasing Visa cards negates a lot of your bonus with the almost $5 fee so many try to avoid it.

I know flyer talk is much more into moving money around, with some people reporting over $100k a month in MS. But just because someone doesn't run marathons, doesn't mean they don't run.


Sorry to burst your bubble. But no. This is not MS at all as much as it is a simple optimization of rewards.

MS involves unnatural spend that does not end with a good or service, usually dealing with cash equivalents.


Unless I'm missing something the poster is talking about "optimizing" 6% categories by buying gift cards at those locations. Yes, that is MS. You are buying gift cards in lieu of product at the location so you can extend your 6% elsewhere.

Regardless, I'm not going to discuss my personal feelings on it but it is definitely MS, even if it's a low level version

kdm31091
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Re: Buying gift cards with cash back/rewards CCs

Postby kdm31091 » Sun Jun 14, 2015 7:15 am

lobbythis wrote:Multiple SallieMae's gets you a lifetime membership at MF.


OMG! Sallie Mae is basically a cult over there. It's a little much

kdm31091
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Re: Buying gift cards with cash back/rewards CCs

Postby kdm31091 » Sun Jun 14, 2015 7:33 am

Nixon wrote:
lobbythis wrote:MS at your own risk. Don't get excited and go on a rampage.


This, pretty much. Unless you have HIGH income and proof of, It's not recommended as to actually make a respectable profit at it you need to be pushing 30-40K/mo worth @ 3%+ margin.


And someone doing that level is often shut down sooner than later (or at the very least eventually)

rockyrock
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Re: Buying gift cards with cash back/rewards CCs

Postby rockyrock » Mon Jun 15, 2015 9:20 am

We spend $10k-$15k a year on groceries, I didn't think it was possible but I guess my wife is just good like that :confused:

I routinely purchase Amazon and Starbucks GCs at the supermarket with my BCP.

I consider MS a loop that never closes. When I buy a GC and use it as an actual-- wait for it-- gift or to buy a cup of coffee that's just maximizing reward potential. That is the whole point of bonus cats and higher CB cats.

If I open a new card with a spend requirement and buy reloadable cards to fund an account to in turn pay off that balance, that is MS.
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