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

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 ?

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 Buying gift cards from the grocery store w/ credit card?).

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].

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.

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.

Originally Posted by Money card

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?

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.

Originally Posted by Pete838

LOL! too funny.

At least someone got it.