Using CC to buy gift cards

[Anonymous]

How many of you guys do this, and do not prefer doing this?

I myself do not like doing this because it adds an additional card I have to keep track of. I also have to write down the balances after each transaction.

For those who do this, how do you manage all the gift cards? 

[vwgrrc]

Not trying to hijack. But I'm always wondering if buying GCs at grocery stores counts rewards point on grocery?

For eg, use my Sallie Mae to buy a Walmart GC at local Tom Thumbs. I've seen quite different answers to this.

[Anonymous]

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@vwgrrc wrote:

Not trying to hijack. But I'm always wondering if buying GC counts rewards point on grocery?

For eg, use my Sallie Mae to buy a Walmart GC at local Tom Thumbs. I've seen quite different answers to this.

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Yes it is since they don't have "level 3 reporting"

[Skye12329]

This is kinda taboo if you get caught. Mainly because if you do it a lot it will earn the points but can get your card shut down. Google: Manufactured Spending

If your buying a GC once in a while its not going to cause too much harm if any. 

[leoment]

Every now and again I'll pick up a gas card or two when I go grocery shopping, but I don't do it all the time - mainly when my other rotating cards don't have gas as a 5% category.

[kdm31091]

Basically if you don't make a habit out of it you'll be fine. Doing it when it is legitimately gift cards for actual gifts is fine, IMO. It's when people are buying 2k a month in "gifts" that flags get raised

[longtimelurker]

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@kdm31091 wrote:

Basically if you don't make a habit out of it you'll be fine. Doing it when it is legitimately gift cards for actual gifts is fine, IMO. It's when people are buying 2k a month in "gifts" that flags get raised

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Well, it's the quantity that might matter, not (directly) if they are "actual gifts" as the issuer has no knowledge of your intent.

IME, theshold is much much higher than $2k per month, but whatever.

[UncleB]

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@kdm31091 wrote:

Basically if you don't make a habit out of it you'll be fine. Doing it when it is legitimately gift cards for actual gifts is fine, IMO. It's when people are buying 2k a month in "gifts" that flags get raised

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+1

I buy gift cards for myself at Kroger all the time... I'm not talking about the MC/V type cards, I'm talking about Amazon, Burger King, Krystal, Target, Hulu, Netflix, Papa John's, Subway, eBay, etc.  I prefer buying the gift cards over using cash as I earn Fuel Points at Kroger when I purchase gift cards (every 6 weeks or so they offer 4x points on gift cards).  I also get 6% cash back using my BCP.

To be clear, this is not manufactured spending, since I'm using the gift cards for merchandise or services, not to just churn reward dollars out of my credit cards.  Also, the folks who have problems are the ones who purchase literally thousands of dollars a month in "groceries" when their annual income clearly doesn't support it.  If you keep it legit, you won't have any problems.

Also, for the record, I use my BCP at the grocery store and I have no problem earning my cash back.  Like Monoglot has mentioned, the card issuer can't tell if your buying gift cards or filet mignon at grocery stores, all they can see is the total dollar amount and the date of the sale.

[Anonymous]

What's the point/reason for buying GCs for other stores? do you get more points when buying a $25 GC for say Macy's than actually spending $25 at Macys?  Just curious.

[Anonymous]

@c00mtg well if it's a rotating category like they freedom was during Q1 then it's 5% cashback on giftcards at the grocery store. Or 6% on your Amex card.

I mix the giftcards in with the groceries.