topic Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards in Credit Cards

Question about using Amex Blue Cash Preferred to Purchase Gift Cards

Jordan23ww — Tue, 19 Oct 2021 14:24:07 GMT

So I've had my Blue Cash Preferred a year and a half so I'm well outside the welcome offer period. I know when it comes to welcome offers Amex frowns upon buying gift cards to meet the spend goal.

I'm wondering though would it be safe to use it to buy $2000 in Apple gift cards so I can get 6% back on a new MacBook. I did something similar while buying household groceries when I bought an Xbox Series X last year but I only did $500 (2 of the $250 Best Buy gift cards).

Since the amount is so huge I would only do $500 per week and buy them with groceries. Any thoughts or information is welcome! Thank you!

Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards

pizzadude — Tue, 19 Oct 2021 14:37:50 GMT

I've purchased numerous gift cards with my BCP and AMEX has never tapped me on the shoulder or taken any AA.

Assuming that your account has always been in good standing then you'll probably be okay. Also you mentioned that this would fit within your previous purchasing history / patterns so I don't see it raising a red flag.

Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards

Anonymous — Tue, 19 Oct 2021 16:38:57 GMT

I'm wondering though would it be safe to use it to buy $2000 in Apple gift cards so I can get 6% back on a new MacBook

Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards

Kforce — Tue, 19 Oct 2021 18:11:19 GMT

Member on this forum for about 6 years.

Have seen many people receive AA from Gift Card use/abuse .....

Also have seen many members gain a lot of points/cashback from gift cards.

It is like playing cards, some times you win and sometimes you lose !

Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards

Anonymous — Tue, 19 Oct 2021 18:29:36 GMT

In general (i.e. I take no responsibility for any adverse events from following this advice!): on a capped card like BCP, Amex is unlikely to care. If you splurged all the grocery $6K on gift cards, the rewards would be only $360 and you could easily meet this with pure grocery spend anyway. Where some (including myself) ran into trouble was with the older uncapped cards (like the original BCP and OBC), I was buying about $30-40Kin gift cards a month, and that did get noticed. (While, to echo @Kforce point, others spending much more didn't get caught).

Similarly with the current Alitude Reserve, which is uncapped for 3% (4.5%) mobile. People there ran into trouble buying even small amounts, at least early on. It's not the amount, it's the potential, and with uncapped cards if you buy $100 today maybe you will buy lots more later, so I may as well shut you down now.

Amex BCP doesn't have those characteristics. But sure, buy them in smaller chunks just to avoid questions!

Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards

MrDisco99 — Tue, 19 Oct 2021 20:12:15 GMT

Amex has rewritten the terms of their rewards programs to exclude cash equivalents from purchases that are eligible for earning rewards. This includes gift cards.

It's likely this is small enough they won't notice and you'll get 6% and everything will be fine. Severe AA like shutdowns appear to be limited to activity relating to signup bonuses, but they have language they can point to if they just want to deny your rewards.

Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards

Jordan23ww — Tue, 19 Oct 2021 20:20:47 GMT

@pizzadude wrote:
I've purchased numerous gift cards with my BCP and AMEX has never tapped me on the shoulder or taken any AA.

Assuming that your account has always been in good standing then you'll probably be okay. Also you mentioned that this would fit within your previous purchasing history / patterns so I don't see it raising a red flag.

@pizzadude Thank you for this feedback! I appreciate it! I've had a great relationship with Amex so far in the just under 2 years I've been with them.

Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards

Jordan23ww — Tue, 19 Oct 2021 20:21:41 GMT

@Kforce wrote:
Member on this forum for about 6 years.
Have seen many people receive AA from Gift Card use/abuse .....
Also have seen many members gain a lot of points/cashback from gift cards.
It is like playing cards, some times you win and sometimes you lose !

Thank you for this feedback!

Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards

Jordan23ww — Tue, 19 Oct 2021 20:23:58 GMT

@Anonymous wrote:
In general (i.e. I take no responsibility for any adverse events from following this advice!): on a capped card like BCP, Amex is unlikely to care. If you splurged all the grocery $6K on gift cards, the rewards would be only $360 and you could easily meet this with pure grocery spend anyway. Where some (including myself) ran into trouble was with the older uncapped cards (like the original BCP and OBC), I was buying about $30-40Kin gift cards a month, and that did get noticed. (While, to echo @Kforce point, others spending much more didn't get caught).

Similarly with the current Alitude Reserve, which is uncapped for 3% (4.5%) mobile. People there ran into trouble buying even small amounts, at least early on. It's not the amount, it's the potential, and with uncapped cards if you buy $100 today maybe you will buy lots more later, so I may as well shut you down now.

Amex BCP doesn't have those characteristics. But sure, buy them in smaller chunks just to avoid questions!

@Anonymous thank you for this feedback! You do bring up some great points to consider!

Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards

Jordan23ww — Tue, 19 Oct 2021 20:25:48 GMT

@MrDisco99 wrote:
Amex has rewritten the terms of their rewards programs to exclude cash equivalents from purchases that are eligible for earning rewards. This includes gift cards.

It's likely this is small enough they won't notice and you'll get 6% and everything will be fine. Severe AA like shutdowns appear to be limited to activity relating to signup bonuses, but they have language they can point to if they just want to deny your rewards.

@MrDisco99 Thank you for this feedback! I appreciate it!

Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards

MrDisco99 — Tue, 19 Oct 2021 21:13:27 GMT

@Jordan23ww wrote:
@MrDisco99 wrote:
Amex has rewritten the terms of their rewards programs to exclude cash equivalents from purchases that are eligible for earning rewards. This includes gift cards.

It's likely this is small enough they won't notice and you'll get 6% and everything will be fine. Severe AA like shutdowns appear to be limited to activity relating to signup bonuses, but they have language they can point to if they just want to deny your rewards.
@MrDisco99 Thank you for this feedback! I appreciate it!

Glad to help.

I'll just add... Everyone has a different risk tolerance. If it was me, though, I wouldn't do it.

Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards

Anonymous — Tue, 19 Oct 2021 21:50:13 GMT

@MrDisco99 wrote:
Amex has rewritten the terms of their rewards programs to exclude cash equivalents from purchases that are eligible for earning rewards. This includes gift cards.

It's likely this is small enough they won't notice and you'll get 6% and everything will be fine. Severe AA like shutdowns appear to be limited to activity relating to signup bonuses, but they have language they can point to if they just want to deny your rewards.

I don't think Apple gift cards are cash equivalents.

Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards

MrDisco99 — Tue, 19 Oct 2021 22:09:13 GMT

@Anonymous wrote:
@MrDisco99 wrote:
Amex has rewritten the terms of their rewards programs to exclude cash equivalents from purchases that are eligible for earning rewards. This includes gift cards.

It's likely this is small enough they won't notice and you'll get 6% and everything will be fine. Severe AA like shutdowns appear to be limited to activity relating to signup bonuses, but they have language they can point to if they just want to deny your rewards.
I don't think Apple gift cards are cash equivalents.

The language in the terms is not specific.

https://thepointsguy.com/news/many-amex-cards-no-longer-earn-points-on-gift-card-purchases/#:~:text=Many%20Amex%20Cards%20No%20Longer%20Earn%20Points%20on%20Gift%20Card%20Purchases,-Ethan%20Steinberg&text=A%20frequent%20target%20of%20Amex,this%20practice%20for%20a%20while.

Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards

Jordan23ww — Tue, 19 Oct 2021 23:19:59 GMT

@MrDisco99 wrote:
@Jordan23ww wrote:
@MrDisco99 wrote:
Amex has rewritten the terms of their rewards programs to exclude cash equivalents from purchases that are eligible for earning rewards. This includes gift cards.

It's likely this is small enough they won't notice and you'll get 6% and everything will be fine. Severe AA like shutdowns appear to be limited to activity relating to signup bonuses, but they have language they can point to if they just want to deny your rewards.
@MrDisco99 Thank you for this feedback! I appreciate it!
Glad to help.

I'll just add... Everyone has a different risk tolerance. If it was me, though, I wouldn't do it.

@MrDisco99 After reading the replies from yourself and others I'm leaning towards not doing it. The risk doesn't seem worth the reward. I'd hate to have 1 or any of my Amex cards closed or get blacklisted for a little extra money.

I already have cards that I can get 3% cash back (Apple Card) or 5% in store reward points back (Best Buy) on for this purchase! If I messed up my Amex relationship, after working so hard to get it, I'd be extremely upset! Thank you again and everyone else for all the feedback and sharing their opinions and experiences!

Re: Question about using Amex Blue Cash Preferred to Purchase Gift Cards

Anonymous — Wed, 20 Oct 2021 00:56:38 GMT

@Jordan23ww wrote:
@MrDisco99 wrote:
@Jordan23ww wrote:
@MrDisco99 wrote:
Amex has rewritten the terms of their rewards programs to exclude cash equivalents from purchases that are eligible for earning rewards. This includes gift cards.

It's likely this is small enough they won't notice and you'll get 6% and everything will be fine. Severe AA like shutdowns appear to be limited to activity relating to signup bonuses, but they have language they can point to if they just want to deny your rewards.
@MrDisco99 Thank you for this feedback! I appreciate it!
Glad to help.

I'll just add... Everyone has a different risk tolerance. If it was me, though, I wouldn't do it.

@MrDisco99 After reading the replies from yourself and others I'm leaning towards not doing it. The risk doesn't seem worth the reward. I'd hate to have 1 or any of my Amex cards closed or get blacklisted for a little extra money.

I already have cards that I can get 3% cash back (Apple Card) or 5% in store reward points back (Best Buy) on for this purchase! If I messed up my Amex relationship, after working so hard to get it, I'd be extremely upset! Thank you again and everyone else for all the feedback and sharing their opinions and experiences!

Personally I think the risk is vanishingly small (if you buy smaller amounts among other grocery purchases) but not quite 0, so if you feel the potential risk isn't worth the gain, then obviously don't. And in this case where you were planning on spending $2000, the 3% gain using the BCP over the Apple card is only $60, so any level of concern is probably too much!

Also, I don't know what protections you get buying with Apple gift cards. Some credit cards will give additional purchase protections (although these things are getting harder to find)