Buying gift cards with cash back/rewards CCs

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

Postby Gamma » Thu Jun 25, 2015 9:01 am

whit wrote:
Gamma wrote:
whit wrote:
Not necessarily
Ms is if you can get cashback, say you buy $5 in gc and than get the $5 cash out of the gc (hypothetical since that's about what a gc costs to purchase)

You get cash back on the card swiped to buy it

Than that's cashback on something that you eventually turned back into cash anyways

If you kept it at a visa/mc/amex or discover gc that you spend--and have no ability to remove cash from it--you are not doing ms because material is being purchased, for the cashback on the cc that purchased the gc--it just transferred over yaknow?

There's also situations where you can do ms without having a gc involved and even better no fee but you won't be able to do it for a large amount (anything over a couple hundreds would raise red flag for the merchant that would be assisting you with this, *hint*hint*) and you won't be able to do it in multiples without getting banned since they do record your info when you do..its a pretty big department with stores throughout America

And, if we are talking about California, there is a reason why the stores here wouldn't let you take a merchandise credit and turn it into a gift card :) even if it's with one merchant and not a visa/discover/mc/amex

You can also do ms that way or altogether get $$$$$ for nothing

I'm surprised this conversation is still going on. MS is indirectly purchasing cash with a credit card. Purchasing Visa/MasterCard gift cards gives one the ability to take cash out by using it to purchase a money order or using it to load a prepaid card (Prepaid RedCard for example.) Use that money obtained by purchasing with a credit card to pay back the credit card company then rinse and repeat. This is what I do with the old Amex Blue Cash card. Purchasing retail gift cards as some mentioned don't accomplish this. You buy it but won't be able to take cash out from it.


Not sure why it's so surprising as it seems like a lot of folks ms, including yourself

I haven't done so yet but I thought money orders can only be purchased with cash or debit card via usps website..I know banks only take cash or withdrawal from that banks' account..unless western union lets you swipe the card

And preloading from gift card to a prepaid card? Why not just purchase prepaid cards directly instead of jumping through that hoop?

Just curious, as there seems to be better ways to make money without actually going through that MS and my apologies I had no idea you can take gift cards and use them to purchase money orders or use them to preload prepaid cards

I would have thought it the same as you not being able to purchase money orders on credit, or prepaid card on credit as its like paying a credit card bill with a credit card but I guess I'm wrong

I just know I avoid buying gift cards in general for others as gifts because there's a fee associated with it and usually the cashier makes me pay cash because they won't allow credit cards to purchase gift cards.

In any case, you're the expert, I just find the subject fascinating like folks that I know who resell products overseas because it's cheaper on mainland (eg Hawaii) or just because it's af in America versus af in Japan / Abercrombie and Fitch

A little over 2 years ago I believe some kind of rule was put into place for banks that sell gift cards (visa/MasterCard only.) Since the gift cards say they're accepted anyplace where "debit" cards are accepted, they were forced to have a PIN feature enabled to be used anywhere debit cards can really be accepted. This opened up the opportunity to be used at places to buy money orders such as Walmart or local grocery stores. For some reason, it doesn't work to buy money orders in post office.

Also loading prepaid products with credit card doesn't work because they only accept cash or debit and would then use a gift card as a debit to load funds into the product.

It's something I found very interesting about this loophole of essentially getting a cash advance without the high Apr. I tend to learn something new about ms every week in a forums about ms.


CarefulBuilder14 wrote:Who else hates getting gift cards as gifts?

Some people seem to think of gift cards as more genteel than giving cash, but to me gift cards seem just as impersonal as cash, while far less convenient.

In fact, for the friends and family who know I'm a credit geek, getting a gift card is especially inappropriate because I can't use my card knowledge to get discounts.

Fortunately, I've had to deal with very few gift card gifts over the years, so the frequency of this irritation has been very low.

I rarely get gift cards as gifts so that's not much of a problem for me :)


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

Postby rockyrock » Wed Jan 27, 2016 10:31 pm

I was in Ralph's earlier looking to buy a few GC's with my BCP and I was denied. They no longer take CC's to purchase GC's at any level. The manage said there was too much CC fraud and they were tired of taking chances. He said it's too easy to copy the mag strip and make a counterfeit card. I pointed to the EMV on the card and said it's much harder to dupe one of these...he didn't really care. Not that it's up to him, it's no doubt a (kroger) corporate policy.

Any one know of other supermarkets that have stopped taking CC's for GC purchase? I'll probably try to hit up Vons or Albertson's tomorrow. In the mean time, I ordered a few cards from raise.com. I know I got a better deal, but sometimes it isn't always about the best deal. Most of the times I buy GC's is on the way to a birthday party where I forgot to buy someone a gift.
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kdm31091
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Re: Buying gift cards with cash back/rewards CCs

Postby kdm31091 » Thu Jan 28, 2016 6:55 am

It's becoming fairly widespread to disallow GC purchases with a CC. I think eventually it won't be allowed anywhere, with the possible exception of store use gift cards. But Visa/Amex GCs being bought with a CC? That ship is sailing away quickly. As the store people mentioned, fraud is a concern. I don't think the stores really care if people are MSing, but obviously it helps prevent that too.

I rarely buy GCs that aren't store specific so it really hasn't impacted me much, but if the rules change 100%, I'll just buy them with cash or I won't buy them. Not much one can do about it.

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

Postby Nixon » Thu Jan 28, 2016 9:16 am

It's the banking laws more than anything.


Joe Schmoe Manager could give a fack less that there is CC fraud for the most part as that is between Corporate, the issuer, and the payment processor.

Joe is just following orders, His boss Stan just doesn't want to go to jail for facilitating money laundering on a grand scale. Understandable? Absolutely. Do I like it? Not too much.
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yfan
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Re: Buying gift cards with cash back/rewards CCs

Postby yfan » Thu Jan 28, 2016 11:36 am

CarefulBuilder14 wrote:Who else hates getting gift cards as gifts?

Some people seem to think of gift cards as more genteel than giving cash, but to me gift cards seem just as impersonal as cash, while far less convenient.

This, right here. I don't mind the occasional gift cards to places I frequent and that sell consumable goods like Starbucks and PF Chang's, but I am not a fan of cash equivalent gift cards as gifts. I also never give those as gifts. I'd rather just take someone out to dinner or cook a meal for them in lieu of a gift.

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Re: Buying gift cards with cash back/rewards CCs

Postby rockyrock » Fri Jan 29, 2016 8:54 am

kdm31091 wrote:It's becoming fairly widespread to disallow GC purchases with a CC. I think eventually it won't be allowed anywhere, with the possible exception of store use gift cards. But Visa/Amex GCs being bought with a CC? That ship is sailing away quickly. As the store people mentioned, fraud is a concern. I don't think the stores really care if people are MSing, but obviously it helps prevent that too.

I rarely buy GCs that aren't store specific so it really hasn't impacted me much, but if the rules change 100%, I'll just buy them with cash or I won't buy them. Not much one can do about it.



I was trying to buy GCs for: Bed, Bath & Beyond, Amazon, and Lowe's. No MS even possible.
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rockyrock
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Re: Buying gift cards with cash back/rewards CCs

Postby rockyrock » Fri Jan 29, 2016 8:57 am

Nixon wrote:It's the banking laws more than anything.


Joe Schmoe Manager could give a fack less that there is CC fraud for the most part as that is between Corporate, the issuer, and the payment processor.

Joe is just following orders, His boss Stan just doesn't want to go to jail for facilitating money laundering on a grand scale. Understandable? Absolutely. Do I like it? Not too much.


How is buying a GC for Bed, Bath & Beyond money laundering? :confused:
American Express (2005): Green & Blue Cash Everyday
Chase: Freedom & UA Club USAA: Signature Visa & American Express
Discover it Bank of Hawaii Hawaiian Airlines WEMC Synchrony Sam's MC
Navy FCU Platinum Visa Citi Double Cash & AT&T Access MC

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

Postby kdm31091 » Fri Jan 29, 2016 10:34 am

rockyrock wrote:
Nixon wrote:It's the banking laws more than anything.


Joe Schmoe Manager could give a fack less that there is CC fraud for the most part as that is between Corporate, the issuer, and the payment processor.

Joe is just following orders, His boss Stan just doesn't want to go to jail for facilitating money laundering on a grand scale. Understandable? Absolutely. Do I like it? Not too much.


How is buying a GC for Bed, Bath & Beyond money laundering? :confused:


I agree with you it seems stupid with the store specific GCs, but there's not much we can do about it. Just have to use cash or debit. I know we want the rewards, but evidently the merchants feel the risks outweigh the benefits of allowing CCs for purchasing them.

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

Postby Nixon » Fri Jan 29, 2016 10:36 am

rockyrock wrote:
Nixon wrote:It's the banking laws more than anything.


Joe Schmoe Manager could give a fack less that there is CC fraud for the most part as that is between Corporate, the issuer, and the payment processor.

Joe is just following orders, His boss Stan just doesn't want to go to jail for facilitating money laundering on a grand scale. Understandable? Absolutely. Do I like it? Not too much.


How is buying a GC for Bed, Bath & Beyond money laundering? :confused:


It ain't. I think the reference is more to the MGC, VGC's. Particularly reloadable or variable load.
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Re: Buying gift cards with cash back/rewards CCs

Postby yfan » Fri Jan 29, 2016 1:28 pm

rockyrock wrote:I was in Ralph's earlier looking to buy a few GC's with my BCP and I was denied. They no longer take CC's to purchase GC's at any level. The manage said there was too much CC fraud and they were tired of taking chances. He said it's too easy to copy the mag strip and make a counterfeit card. I pointed to the EMV on the card and said it's much harder to dupe one of these...he didn't really care. Not that it's up to him, it's no doubt a (kroger) corporate policy.

Any one know of other supermarkets that have stopped taking CC's for GC purchase? I'll probably try to hit up Vons or Albertson's tomorrow. In the mean time, I ordered a few cards from raise.com. I know I got a better deal, but sometimes it isn't always about the best deal. Most of the times I buy GC's is on the way to a birthday party where I forgot to buy someone a gift.

I can still buy merchant specific gift cards from Costco and Safeway - though I don't really buy a lot, except to buy the PF Chang's GCs from Costco, which come at a 20%+ discount.

I think that merchants will eventually draw a distinction between Visa/MC/Amex gift cards and merchant specific ones, but until that happens, the trend may well be towards bunching them together and refusing to take credit for any of those.

I do see the fraud issue though. If you're a credit card thief, once you have got a stolen credit card, the first thing you want to do is is transfer as much money as possible into forms that cannot be recovered once the fraud is spotted and the card is shut down. Gift cards are a better bet there than buying a bunch of perishable items or merchandise you don't need and could get you in trouble if you try to sell (as that's basically selling stolen goods). Instead, you get retail gift cards and just spend from those when you want something.



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