topic Re: Disadvantage of using Amazon gift card vs credit card in Credit Cards

Disadvantage of using Amazon gift card vs credit card

Beast26 — Mon, 26 Oct 2020 00:21:49 GMT

Is there a disadvantage of using an amazon gift card to buy products on amazon vs using the Amazon credit card? I heard on a video that you don't get some type of purchase protection or something. Could someone explain this to me?

I was thinking if I got the Freedom Flex and Discover it cash back I wouldn't need to get an Amazon credit card unless there is something that I don't know about warranties and such. With both cards I would be able to cover amazon all year. I spend about $150-$200 on amazon per month on necessities.

Side note:. When I am talking about using gift cards it's not MasterCard or visa gift cards. I intend on genuinely using gift cards purchased from stores in order to cover my spend for Amazon.

Re: Disadvantage of using Amazon gift card vs credit card

ccquest — Mon, 26 Oct 2020 00:28:49 GMT

If you buy it directly with the credit card, you get stuff like extended warranty or sometimes if there's issues in the first X days and the vendor doesn't help you, the card issuer steps in to help. With Amazon, I don't really think it'd be an issue because they're usually pretty top notch.

Re: Disadvantage of using Amazon gift card vs credit card

Beast26 — Mon, 26 Oct 2020 00:51:09 GMT

Thanks for your reply. I've never had an issue with them even returning items and such. I'm contemplating whether or not I need to get an Amazon credit card if I get the Freedom Flex.

Re: Disadvantage of using Amazon gift card vs credit card

sxa001 — Mon, 26 Oct 2020 01:14:14 GMT

I think the better question is where is the advantage in putting these Amazon purchase on gift cards versus just using any other credit card that may have any kind of rewards, even if just 1%.

I don't think anyone ever "needs" a card. If through the categories (both rotating and standing categories) you plan to put more than $2400 a year in it and earn more than $120 a year in cash back, then going with the CFF is a better option. Amazon Prime card, IMHO us great for very heavy Amazon users who have other cards to cover their other primary categories of spend.

Re: Disadvantage of using Amazon gift card vs credit card

chiefone4u — Mon, 26 Oct 2020 09:09:29 GMT

@Beast26 wrote:
Thanks for your reply. I've never had an issue with them even returning items and such. I'm contemplating whether or not I need to get an Amazon credit card if I get the Freedom Flex.

You don't "need" an Amazon credit card. You can pay anyway you feel comfortable paying.

F.Y.I. Discover IT currently has Amazon.com Target and Walmart as the 5% cash back categories this quarter (October-December).

The lure of an Amazon credit card (Synchrony or Chase) is the extra cash back for prime members when you use the card at Amazon.

The use of gift cards provides you with the same protections as cash... if you lose it, it's gone... if someone steals it, it's gone... if you buy something with it and the merchant goes out of business before delivering the item... you guessed it... it's gone.

The use of a credit card prevents you from losing any money in all of the above instances.

Again the Amazon credit card isn't needed for any protection, any credit card will do. With the correct credit cards and playing the category game you can land the same cash back or better using other cards.

Edit: above F.Y.I. should say: Amazon.com, Target.com and Walmart.com for 5% categories this quarter.

Re: Disadvantage of using Amazon gift card vs credit card

Beast26 — Mon, 26 Oct 2020 01:23:10 GMT

Using the Freedom Flex I could play the category game and buy Amazon gift cards and get 5% cash back all year.

Re: Disadvantage of using Amazon gift card vs credit card

Anonymous — Mon, 26 Oct 2020 01:29:51 GMT

@Beast26 wrote:
Is there a disadvantage of using an amazon gift card to buy products on amazon vs using the Amazon credit card? I heard on a video that you don't get some type of purchase protection or something. Could someone explain this to me?

I was thinking if I got the Freedom Flex and Discover it cash back I wouldn't need to get an Amazon credit card unless there is something that I don't know about warranties and such. With both cards I would be able to cover amazon all year. I spend about $150-$200 on amazon per month on necessities.

Side note:. When I am talking about using gift cards it's not MasterCard or visa gift cards. I intend on genuinely using gift cards purchased from stores in order to cover my spend for Amazon.

Totally random input, they also have a program now where you can reload your amazon giftcard with a debit card and you get 2% added to your balance:

Say you add $100 to the amazon giftcard, your balance will be $102.

So at least as good as 2% CB CC and the "reward" is instant.

Just an alternative to a CC, not to detract, but you asked if you "needed" a CC.

Good luck with whatever you choose!

Re: Disadvantage of using Amazon gift card vs credit card

Anonymous — Mon, 26 Oct 2020 01:31:04 GMT

@Beast26 wrote:
Using the Freedom Flex I could play the category game and buy Amazon gift cards and get 5% cash back all year.

Right, for the first year you could buy them at supermarkets (assuming you aren't going to use the $12K on real groceries) and after that some of the quarters may include places to buy Amazon gift cards too. But with a fairly low amazon spend, you don't want to tie up funds stocking up too much.

Re: Disadvantage of using Amazon gift card vs credit card

notmyrealname23 — Mon, 26 Oct 2020 02:20:50 GMT

@Beast26 wrote:
Is there a disadvantage of using an amazon gift card to buy products on amazon vs using the Amazon credit card?

If you make any kind of large purchase, the Amazon Prime Store card from Synchrony offers 0% interest for 6 to 12 months (depending on the size of the purchase). I found that handy for doing some larger purchases, in that I can space out repaying the purchase (also lets the balance float up a little bit before it goes down, showing that it can be repaid).

Also, you're going to tie up funds in gift cards for the half of the year where you're not using a 5% category.

It's not a terrible plan if you don't want to deal with Synchrony, blow a 5/24 slot on a Chase card, or apply for the AMEX Amazon Business card, and also don't mind tying up the cash.

Re: Disadvantage of using Amazon gift card vs credit card

Beast26 — Mon, 26 Oct 2020 02:51:59 GMT

Well when I get freedom flex it will be my 5th slot. Then I will garden for a year and get US Bank Cash+. At that time I will be back at 4/24. I could then wait 3 months and app for the chase Amazon after that. I'm just scared to get a synchrony amazon to be honest I'm reading so many things about them. I could use Amazon gift cards for the first year with flex then get the Amazon Visa 3 months after I get US Bank. Plus from what I see the synchrony amazon mostly max out at $10k. I've seen many people with the Chase version surpass that. But with the 12 month grocery promo I could get amazon gift cards from Publix every month to cover purchases. I will PC my discover it Miles to 5% cashback in a year when the cashback match is up. Then I will have both rotating category cards.

Re: Disadvantage of using Amazon gift card vs credit card

iced — Mon, 26 Oct 2020 16:30:10 GMT

@Beast26 wrote:
Is there a disadvantage of using an amazon gift card to buy products on amazon vs using the Amazon credit card? I heard on a video that you don't get some type of purchase protection or something. Could someone explain this to me?

I was thinking if I got the Freedom Flex and Discover it cash back I wouldn't need to get an Amazon credit card unless there is something that I don't know about warranties and such. With both cards I would be able to cover amazon all year. I spend about $150-$200 on amazon per month on necessities.

Side note:. When I am talking about using gift cards it's not MasterCard or visa gift cards. I intend on genuinely using gift cards purchased from stores in order to cover my spend for Amazon.

From a purchase standpoint, no difference unless you're using a card that gives you some added benefit for placing the purchase on it. I use gift cards on Amazon for most of my purchases, but they're also free gift cards I've received and not ones I've purchased.

If you're asking whether to pick up gift cards via a card and then use it instead of just using the card directly, just use the card directly.

Re: Disadvantage of using Amazon gift card vs credit card

Anonymous — Mon, 26 Oct 2020 16:33:37 GMT

@iced wrote:
.

If you're asking whether to pick up gift cards via a card and then use it instead of just using the card directly, just use the card directly.

I'm assuming that that was not the choice! Basically OP can use Chase Freedom Flex (first year) to buy Amazon gift cards at a supermarket for 5%, but can't, except in one quarter maybe, use it directly on Amazon for the same savings

Re: Disadvantage of using Amazon gift card vs credit card

iced — Mon, 26 Oct 2020 17:23:04 GMT

@Anonymous wrote:
I'm assuming that that was not the choice! Basically OP can use Chase Freedom Flex (first year) to buy Amazon gift cards at a supermarket for 5%, but can't, except in one quarter maybe, use it directly on Amazon for the same savings

Then it would technically fall under added benefit, though I'll never recommend that as I see using GC puchases to maximize reward as a form of MS.

Re: Disadvantage of using Amazon gift card vs credit card

Beast26 — Mon, 26 Oct 2020 17:34:32 GMT

Do companies see this as MS? Im not buying MasterCard or Visa gift cards and I'm going nowhere near $1500 in purchases in a quarter if I went this route.

Re: Disadvantage of using Amazon gift card vs credit card

iced — Mon, 26 Oct 2020 17:42:54 GMT

@Beast26 wrote:
Do companies see this as MS? Im not buying MasterCard or Visa gift cards and I'm going nowhere near $1500 in purchases in a quarter if I went this route.

If it's a few hundred once in a while, probably not. If you hit the $1500 every quarter, though...

AmEx has cracked down on some users who really milked the travel credits buying gift cards, and there's been other examples here and there of cards clawing back rewards for flagrant abusers.

EDIT: here's an example: https://frequentmiler.boardingarea.com/amex-going-clawback-happy-for-grocery-store-spend/

Re: Disadvantage of using Amazon gift card vs credit card

Anonymous — Mon, 26 Oct 2020 17:43:19 GMT

@Beast26 wrote:
Do companies see this as MS? Im not buying MasterCard or Visa gift cards and I'm going nowhere near $1500 in purchases in a quarter if I went this route.

Generally not, and certainly $1500 a quarter would be fine. Spending all $6000 on the CFF grocery benefit in one trip, then that would probably be queried! So, IMO (and be sure to tell them I said so if they complain!) there are no concerns about MS here.

Re: Disadvantage of using Amazon gift card vs credit card

Beast26 — Mon, 26 Oct 2020 17:46:56 GMT

The most I would spend in a quarter is $600 on a category. That's $200/month.

Re: Disadvantage of using Amazon gift card vs credit card

Anonymous — Mon, 26 Oct 2020 17:55:02 GMT

@Beast26 wrote:
The most I would spend in a quarter is $600 on a category. That's $200/month.

I really wouldn't worry. The only problem with gift cards is that they can potentially be "discovered" more easily than other tricks promoted here, such as prepaying something to get in the right quarter (or meet a SUB). But issuers are going to focus on the bigger fish.

Re: Disadvantage of using Amazon gift card vs credit card

Beast26 — Mon, 26 Oct 2020 17:59:38 GMT

If I don't get the Freedom Flex I would get the PNC Cash rewards card next year. In the end the Freedom Flex would be primarily for gas along with my discover. But at $200/month that works be only a $24 difference in a year for just gas.

Re: Disadvantage of using Amazon gift card vs credit card

Anonymous — Mon, 26 Oct 2020 18:37:00 GMT

The only time I ever use GC's is if they didn't cost me anything such as a gift, or from Amazon as a promo etc. Because to me it's essentially free cash to use. Otherwise I use a CC for the rewards. As for returns Amazon is pretty good about taking car of the ustomer most of the time so I wouldn't be worried too much in that regard, GC versus CC. Although if it's for something pretty expensive and likly to fail then would stick to the CC and use the GC on random lower piced everyday stuff/consumables.