Using CC to buy gift cards

[UncleB]

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@Anonymous wrote:

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.

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Very fair question. 

I do it to 'double dip'; I get Fuel Points for buying the gift cards at the grocery store (getting me about $18/month in gas discounts) and I am able to effectively get 6% cash back for shopping at stores that otherwise I'd only get 1.5% back by using a QuickSilver.

[yfan]

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@Anonymous wrote:

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? 

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It depends on what kind of gift cards. If they are store specific cards, it's fine, and I do that on occasion. Store specific cards are generally not considered cash equivalents as they cannot be used outside of a specific merchant.

If its a Visa/MC gift card, that is cash equivalent, and I don't do it.

As for managing, I don't get too many, and put them in a small box so I can use them when I need to/go to that specific store/site.

[Anonymous]

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@Anonymous wrote:
@Anonymous 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.

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Ohh ok, i got it now...thanks 

[Anonymous]

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@UncleB wrote:

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@Anonymous wrote:

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.

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Very fair question. 

I do it to 'double dip'; I get Fuel Points for buying the gift cards at the grocery store (getting me about $18/month in gas discounts) and I am able to effectively get 6% cash back for shopping at stores that otherwise I'd only get 1.5% back by using a QuickSilver.

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That's a good stragety, didnt think of that before. Thanks!

[Man-Of-Steel]

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@UncleB wrote:

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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.

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I also shop at Kroger. I need to look into that Fuel Points program you referenced above.

[Anonymous]

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@UncleB wrote:

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@Anonymous wrote:

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.

---

Very fair question. 

I do it to 'double dip'; I get Fuel Points for buying the gift cards at the grocery store (getting me about $18/month in gas discounts) and I am able to effectively get 6% cash back for shopping at stores that otherwise I'd only get 1.5% back by using a QuickSilver.

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guess all ya need is the BCP and you can give me your sams MC then, ok? 

[UncleB]

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@Anonymous wrote:

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@UncleB wrote:

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@Anonymous wrote:

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.

---

Very fair question. 

I do it to 'double dip'; I get Fuel Points for buying the gift cards at the grocery store (getting me about $18/month in gas discounts) and I am able to effectively get 6% cash back for shopping at stores that otherwise I'd only get 1.5% back by using a QuickSilver.

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guess all ya need is the BCP and you can give me your sams MC then, ok? 

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LOL... I can't give up the Sam's Mastercard just yet... I only added it to my signature this morning!! 

The Sam's MC is 'destined' to be my new hotel and fast-food card.  I suspect I'll get to know it quite well...

(Still need the BCP to get 6% off groceries and gift cards for Amazon and eBay... LOL)

[Anonymous]

Double dipping is fine, buying store gift cards to get a few extra points for rewards is fine. the problem is buying one gift card that can buy another gift card that has a pin, withdrawing the cash and using that as a direct payment on that credit card-- that is how you rack up thousands of miles for free… but you have to run five or six thousand dollars through your card in a month or two to achieve this. The people buying themselves fuel for the week such as myself shouldn't I have to worry my brand new PRG shines in this. Once I actually fly somewhere next yeaf I will probably have great credit history and be able to get one of those high cashback grocery cards and do even better.

[TitaniumCash]

I've only done it once because Giant was having a special offer where you get 3X gas points for their gas rewards program if you buy a mastercard gift card. So I used my Amex card to get 3% back since it's a grocery store and then in addition to that got 3,000 gas points. I don't like the cheap thin looking gift cards and having to track it online for usage, but it's good to use it at places where I would only get 1% cash back anyway. 

[red259]

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@Skye12329 wrote:

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. 

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Buying giftcards is not MS per se and there is nothing taboo about it if its simply a matter of purchasing a gift card (my understaning of the question is that it is about gift cards and not pure cash equivalents which I am not addressing here). You can buy them just fine and no they don't need to be a "gift" for someone else.That being said I rarely buy giftcards and the only situation where I may do so outside of giving a gift is when its a bonus quarter for something like fuel and I want to stock up for the upcoming months when there isn't a bonus on fuel. Same can be applied to restaurants if your favorite restaurant has gift cards.