bonus cash back categories by leveraging Gift Cards?

[singulardedication]

For reward cards, like Amex BCE, Discover, Chase Freedom they each have bonus categories that get additional cash back.

Anyone try at a Gas Station to buy gift cards to get the higher cashback to spend elseware?  Perhaps CCs see the transations differently counter vs. pump.

Although a supermarket transaction the company may not be able to distinguish.  Last I heard state sales tax should not be charged on gift cards right?

[Anonymous]

This is possible. However if you usually spend $100 a week and suddenly spend $1000 a week be prepared for a review.

[Open123]

---

@Anonymous wrote:

This is possible. However if you usually spend $100 a week and suddenly spend $1000 a week be prepared for a review.

---

Right, unless it's your pattern of spending, spending $2k/month at gas stations or $10k at supermarkets will certainly raise red flags with any issuer.

[Anonymous]

I've heard of people being able to do this with the BCP/BCE. I wouldn't just keep on buying gift cards by themselves though, since the charge rung up would always been in even increments - $25, 50, 100, etc. so it would be fairly obviously that you're abusing the system. But if you grab gift cards as part of your grocery shopping I don't think there would be an issue.

[CreditScholar]

The best way to do this IMO is to use the Ultimate Rewards site through Chase, if you can.

Giftcertificates.com is listed as a merchant which gives an extra 3 points per dollar spent. As a link through their own website, the extra points are guaranteed. There's a fairly large selection on that site, including restaurants, retail stores, movie theaters and travel-type cards.

I sometimes purchase Hyatt gift cards and get 4 points per dollar spent (1 normal + 3 bonus). Then when I use them at the Hyatt I get an additional 5.75 points per dollar spent (including the 15% platinum bonus). Combining the two I get almost 10 points per dollar, whereas normally I would have only received 7.75 (5.75 + 2 for travel on my CSP).

[Nyru]

I actually just called Chase and blatantly asked if it was ok to buy a bunch of gift cards to get 5% cash back and they said it was ok.

[longtimelurker]

---

@Nyru wrote:

I actually just called Chase and blatantly asked if it was ok to buy a bunch of gift cards to get 5% cash back and they said it was ok.

---

I doubt that this gives protection!  You would need to speak to someone who makes decisions on when to close accounts, and they almost certainly won't tell you.   People have been shut down for (their guess) buying too many Chase gift cards for example.

But buying a "reasonable" amount is probably OK, you just have to guess "reasonable".   Not much of an issue on BCP/BCE since they instituted the cap, as that really limits their exposure.    But the issuers retain the right to close your card for any or no (non-prohibited) reason.

[lithium78]

Since this quarter's 5% category for Discover is Online Shopping, if I buy gift cards over Amazon.com will I get 5% cashback?  Anybody know?

[enharu]

Yes you will get 5% for buying amazon gift cards online. Same for Costco and most other merchants as long as the purchase is made online.

[FutureBillionaire]

---

@CreditScholar wrote:

The best way to do this IMO is to use the Ultimate Rewards site through Chase, if you can.

Giftcertificates.com is listed as a merchant which gives an extra 3 points per dollar spent. As a link through their own website, the extra points are guaranteed. There's a fairly large selection on that site, including restaurants, retail stores, movie theaters and travel-type cards.

I sometimes purchase Hyatt gift cards and get 4 points per dollar spent (1 normal + 3 bonus). Then when I use them at the Hyatt I get an additional 5.75 points per dollar spent (including the 15% platinum bonus). Combining the two I get almost 10 points per dollar, whereas normally I would have only received 7.75 (5.75 + 2 for travel on my CSP).

---

I wasn't aware of this option. Thanks for sharing.