Buying gift cards with credit cards = extra cash back?

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Chris
 
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Buying gift cards with credit cards = extra cash back?

Postby Chris » Wed Dec 07, 2011 3:50 pm

Hi all,

A few days ago I was reading some of the questions / reviews on this site for what are currently considered good credit cards.

I'm currently looking to buy a small condo in Boston within the year and was hoping (if I play my cards right) to build my credit faster than with out them.

I recently got Chase Freedom and Discover More cards.

Discover 5% cash back categories.
Q1: Gas, Museums, Movies
Q2: Restaurants and Movies
Q3: Gas, Movies, Theme Parks
Q4: Department Stores, Electronics Stores, Toy Stores

Chase Freedom 5% cash back
Q1: Gas, Amazon
Q2: Grocery, Movie Theaters
Q3: Gas, Restaurants
Q4: Hotel, Airline, Best Buy, Kohl's

During Q2 (chase freedom) can I buy Gas gift cards at the grocery store with my credit card and still get 5% cash back?

During Q2 (Discover) and Q3 (Chase) can I buy restaurant gift cards to use later (say Q1 and Q4) ?

How about later on for electronics stores or amazon....

Point I'm getting at is can I stock up on gift cards (gift vouchers) to tide me over during the quarters which don't apply ?


FutureBillionaire
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Postby FutureBillionaire » Fri Dec 09, 2011 5:42 pm

Unfortunately, no for both of them.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

hjamespyun
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Postby hjamespyun » Fri Dec 09, 2011 6:50 pm

I remember seeing people all over the Internet comment on how they use their AMEX Blue Cash Preferred to get 6% cash back while buying gift cards at grocery stores. Having said that, I have yet to see a verified report of this (What and http://creditcardforum.com/rewards/1786-buying-gift-cards-grocery-store-w-credit-card.html).

At the moment though, I did purchase a few gift cards from my local grocery store using an AMEX Gold PR. Def. will let you know what happens [if at all].
Cards In Use
Chase Sapphire Visa Signature (Downgraded from Sapphire Preferred)
American Express Platinum (Upgraded from Premier Rewards Gold)
Citi ThankYou Preferred World Elite MasterCard

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Pete838
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Postby Pete838 » Tue Dec 13, 2011 9:55 am

Last year I bought a lot of AMEX gift cards charged to my AMEX charge cards through BigCrumbs.com. If you open an account, then go through BigCrumbs.com and you can get the rewards points from the credit card PLUS cash back in the form of a Paypal payment for each purchase made through their site. I've made a couple hundred dollars just in payments from them this year.

Open the account at Bigcrumbs.com (my referral link). Search for American Express gift cards, and follow the links. If you get the AMEX "eGift Card" there is no fee. If you want a mailed gift card you may have to search for a promo code to make it free.
Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.
Ronald Reagan

hjamespyun
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Postby hjamespyun » Sat Dec 17, 2011 6:52 pm

Just as an update: based on a rough calculation, I got 2x points for all my grocery store purchases, gift cards included.

Hope this helps.
Cards In Use
Chase Sapphire Visa Signature (Downgraded from Sapphire Preferred)
American Express Platinum (Upgraded from Premier Rewards Gold)
Citi ThankYou Preferred World Elite MasterCard

Money card
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Postby Money card » Sat Dec 17, 2011 9:59 pm

you people can't get a certain percentage back on gift cards because you set the amount.

Think about this. If a warehouse employee wants to buy family members some gift cards like Banana Republic, Swarowski, L'Occitane, Aveda, J Crew, Neiman Marcus that person can afford gift cards, that doesn't mean they can afford the stores. you wont get the 5% back. however if you use a card to buy them that gets miles like a capital1 venture chase sapphire you will get your miles on gift cards.

1 thing to remember is it matters what category you're in. for example let's say you sign up for the gas category, now where a lot of people live BJs might have some gas pumps. take a guess you, don't get 6% back on the preferred or 5% back on the freedom or More card because BJs is a whole sale store.

same if you go to Mandies whatever and you buy jewelry. let's say you have signed up for clothing stores you still get back your percentage, because Mandies is a clothing even though you bought jewelry.

so if you go to shoprite and you wanted to buy gift cards for Ruby Tuesdays, Banana Republic, Armani Exchange, Buffalo Wild Wings you won't get the 6% percent back or 5% in the restaurant and fashion because you bought them in a grocery store.

groceries would be when you buy food, milk, soda, cookies etc these would be in the grocery store category. that's when you get 5% or 6% cash back.

DoingHomework
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Postby DoingHomework » Mon Dec 19, 2011 1:41 pm

Money card wrote:you people can't get a certain percentage back on gift cards because you set the amount.

Think about this. If a warehouse employee wants to buy family members some gift cards like Banana Republic, Swarowski, L'Occitane, Aveda, J Crew, Neiman Marcus that person can afford gift cards, that doesn't mean they can afford the stores. you wont get the 5% back. however if you use a card to buy them that gets miles like a capital1 venture chase sapphire you will get your miles on gift cards.

1 thing to remember is it matters what category you're in. for example let's say you sign up for the gas category, now where a lot of people live BJs might have some gas pumps. take a guess you, don't get 6% back on the preferred or 5% back on the freedom or More card because BJs is a whole sale store.

same if you go to Mandies whatever and you buy jewelry. let's say you have signed up for clothing stores you still get back your percentage, because Mandies is a clothing even though you bought jewelry.

so if you go to shoprite and you wanted to buy gift cards for Ruby Tuesdays, Banana Republic, Armani Exchange, Buffalo Wild Wings you won't get the 6% percent back or 5% in the restaurant and fashion because you bought them in a grocery store.

groceries would be when you buy food, milk, soda, cookies etc these would be in the grocery store category. that's when you get 5% or 6% cash back.


Money card: How does this apply to business travelers? Would this scenario still be true if I went to Mandies while traveling on business?

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Postby Money card » Wed Dec 21, 2011 9:54 pm

let's say the first 2 weeks in January your on a business trip. you signed up for gas the movies and museums. let's say about 10 minutes away from your hotel there's a 7-11 or shoprite, you just want to pick up some chips. you see they sell gas gift cards if you purchase the gift card or any gift card you don't get the 5% back, as I said before because you set the limits there's no 5% back on gift cards.

If you stopped off at a mall that has mandees, in the fashion quarter which doesn't look like they're having this season. But if they did and you purchased jewelry because Mandees is a clothing store you do get your 5% back. whether it be chase freedom or Discover. I only use the first quarter as an example.

Now if you have a blue cash card American express in the 2%, I believe department stores and groceries. you picked up gas cards and department stores at shoprite I'm not sure how this would work out. or if you have the preferred and you get 6% back on groceries, if you buy let's say a shell gift card at shoprite, I'm not sure if you get 6% back because they are gift cards this you would have to call them.

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Pete838
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Postby Pete838 » Thu Dec 22, 2011 8:19 am

DoingHomework wrote:Money card: How does this apply to business travelers? Would this scenario still be true if I went to Mandies while traveling on business?


LOL! too funny.
Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.
Ronald Reagan

DoingHomework
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Postby DoingHomework » Thu Dec 22, 2011 2:30 pm

Pete838 wrote:LOL! too funny.


At least someone got it.



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