Thread: Buying gift cards with credit cards = extra cash back?

Originally Posted by Chris

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 ?

Yes you can. I do it all the time, not with gas though.

Every branded gift card in a preset dollar amount will count as a grocery purchase. The Visa and Mastercard gift cards, which you select the the dollar amount, charge an activation fee, diminishing, if not negating the reward totally. If a grocery store sells it, it will count as a grocery purchase. If a restaurant sells it, it will count as a restaurant purchase. Does Cracker Barrel have two seperate registers? One in the 'store' and the other to pay for your food? If so, this may be the exception. The multiple register counterpoint; prescriptions filled at the grocery store pharmacy. The last time I did it, it counted as grocery.

I just added $100 (an amount of my choosing) to my Subway card, at Subway, with my Discover More card and I will get $5 in rewards for it. I added $100 (again, of my choosing) to my Sears gift card, at Sears, and I did get $5 in rewards for it.

During Q2, with Freedom x3, I will be buying many gift cards at my grocery store... ebay and amazon among others and many for the grocery store itself, they can also be used at their pumps.

Now for the nit-pickers around here...
Pay at the pump is coded differently, if your grocery store sells gas. All the above is subject to your merchant being coded correctly. Kroger grocery showing up as gas, both inside and at the pump, comes to mind. Verify your grocery store(s) show on your statement as such. Unfortunately, Chase will show these as 'other', it's ok.

One last point. If I'm buying milk, bread and a Bass Pro Shops gift card at the same time there will be only one transation code (one total receipt and one for each gift card you have purchased verifying activation), all completed under one merchant code. Grocery.

For me, not at all. It adds or extends the bonus period, just as the OP had put forth. For others it may the best all around strategy.

If you have ever looked at the gift card selection at your local grocery store you will quickly see not all stores are represented. I sighted ebay and amazon, by getting cards I will get 5% for the first $50 of any ebay purchase, you can only redeem one card per transaction. No credit card will net me that reward. Besides, caring gift cards for every possible store you may spend money at is a tad impractical. Stocking up on gift cards for places you know that you will be spending money at, while picking up a better reward or prolonging the reward period makes sense to me.

Example: Odds are you will drive by at least one grocery store on your way to Lowes or Home Depot. Why not get 6% if you have a AMEX Blue Cash Preferred?