topic Re: Amex Blue Cash in Credit Cards

Amex Blue Cash

Anonymous — Thu, 20 Oct 2011 20:49:31 GMT

This may be a dumb question. I can't find an answer anywhere on the Amex website. To justify the blue cash preferred over the blue cash everyday, you need to spend over $2,500 at grocery stores (not considering gas and dept. Stores). Would you be able to just buy general gift cards that are sold at grocery stores, and have those purchases count for the 6% cash back? Seems like a loophole that I assume others have thought of and Amex most likely has covered.

Re: Amex Blue Cash

Guava — Thu, 20 Oct 2011 21:09:20 GMT

@Anonymous wrote:
This may be a dumb question. I can't find an answer anywhere on the Amex website. To justify the blue cash preferred over the blue cash everyday, you need to spend over $2,500 at grocery stores (not considering gas and dept. Stores). Would you be able to just buy general gift cards that are sold at grocery stores, and have those purchases count for the 6% cash back? Seems like a loophole that I assume others have thought of and Amex most likely has covered.

Yes!!!!

Re: Amex Blue Cash

Anonymous — Thu, 20 Oct 2011 23:11:01 GMT

Yes as in, you can buy gift cards at say Shoprite and get the 6% cash back? because that sounds pretty nice to me.

Re: Amex Blue Cash

Anonymous — Fri, 21 Oct 2011 02:43:11 GMT

Yes, because AmEx doesn't see a breakdown of everything on your receipt, all they see is a total amount for the transaction. One caveat to think about if you buy the gift cards - if you're just buying cards for restaurants or something that's fine, if you're buying merchandise, you might lose some of the consumer protections that come with using your AmEx card for the purchase ie. warranty extension, theft protection or whatever.

Re: Amex Blue Cash

Anonymous — Fri, 21 Oct 2011 04:36:34 GMT

Where you live is actually more relevant. Some grocery stores only allow gift card purchase on debit cards or cash. I think I remember that being the case somewhere in South Carolina. So check with your local grocery stores first I guess? Otherwise, I must say AMEX can't possibly know if you bought gift cards or merchandises. Just throw in a pack of gum in there to make total some odd number to avoid suspicions.

Re: Amex Blue Cash

Anonymous — Mon, 31 Oct 2011 05:30:31 GMT

Are you sure about this? If you read the terms it says you don't earn rewards on cash equivalent purchases. If anyone can provide insight that would be great because I would like to use the card for that too

Re: Amex Blue Cash

Anonymous — Mon, 31 Oct 2011 05:49:45 GMT

I buy gift cards at walmart with my Amex Blue Cash and use the gift cards to fill up at the station

Re: Amex Blue Cash

Anonymous — Mon, 31 Oct 2011 06:06:21 GMT

And this counts towards 6% I thought it discounted rewards for discount stores

Re: Amex Blue Cash

Anonymous — Mon, 31 Oct 2011 17:18:16 GMT

@Anonymous wrote:
I buy gift cards at walmart with my Amex Blue Cash and use the gift cards to fill up at the station

Did you get 6% on purchases at walmart?

Re: Amex Blue Cash

CreditMuppet — Tue, 01 Nov 2011 15:01:43 GMT

Walmart is reported as a Discount store, so if you think you are getting 6% on those purchases you might want to check your Blue rewards...

Re: Amex Blue Cash

wajj — Tue, 01 Nov 2011 18:36:53 GMT

@Anonymous wrote:
Are you sure about this? If you read the terms it says you don't earn rewards on cash equivalent purchases. If anyone can provide insight that would be great because I would like to use the card for that too

I buy Amazon gift cards at Kroger using my Blue Cash Preferred all the time ($200 to $300 each month -- I shop more at Amazon than at Kroger ) and get 6% back on all of the gift card purchases. Been doing this since the Blue Cash Preferred came out with no problems at all.

Now I have never tried to buy only gift cards. I always pick up groceries as well.

Re: Amex Blue Cash

Anonymous — Tue, 01 Nov 2011 18:51:14 GMT

If you doubt that buying gift cards at a grocery store works to get 6% back, just take a look at your CC statement. Does it give you an itemized list of what you actually purchased? Or does it just say "insert grocery store here Purchase"? AMEX doesn't know what you bought from the grocery store, just that you made purchases there.

I mean, if they didn't give you 6% back for buying a gift card from a grocery store (because a gift card is not a "grocery), they would probably also refuse 6% back on all other non-grocery items you can purchase at a grocery store.

Re: Amex Blue Cash

CreditMuppet — Tue, 01 Nov 2011 19:00:56 GMT

@Anonymous wrote:
If you doubt that buying gift cards at a grocery store works to get 6% back, just take a look at your CC statement. Does it give you an itemized list of what you actually purchased? Or does it just say "insert grocery store here Purchase"? AMEX doesn't know what you bought from the grocery store, just that you made purchases there.

I mean, if they didn't give you 6% back for buying a gift card from a grocery store (because a gift card is not a "grocery), they would probably also refuse 6% back on all other non-grocery items you can purchase at a grocery store.

Its about what code the store reports to the merchant gateway not anything to do with what was actually purchased. ie walmart report any transaction as "Discount Store" thus anything and everything purchased there will NOT earn 6%

With regard to buying gift cards at a store that reports all transactions as "grocery store" yes that should work, as long as that store has a policy of "no gift card purchases with a credit card". At walmart you would be out of luck.

Simple really.

Re: Amex Blue Cash

Anonymous — Tue, 01 Nov 2011 19:03:40 GMT

@CreditMuppet wrote:
@Anonymous wrote:
If you doubt that buying gift cards at a grocery store works to get 6% back, just take a look at your CC statement. Does it give you an itemized list of what you actually purchased? Or does it just say "insert grocery store here Purchase"? AMEX doesn't know what you bought from the grocery store, just that you made purchases there.

I mean, if they didn't give you 6% back for buying a gift card from a grocery store (because a gift card is not a "grocery), they would probably also refuse 6% back on all other non-grocery items you can purchase at a grocery store.
Its about what code the store reports to the merchant gateway not anything to do with what was actually purchased. ie walmart report any transaction as "Discount Store" thus anything and everything purchased there will NOT earn 6%

With regard to buying gift cards at a store that reports all transactions as "grocery store" yes that should work, as long as that store has a policy of "no gift card purchases with a credit card". At walmart you would be out of luck.

Simple really.

Yup, makes sense to me. I never thought of buying gift cards from the grocery store though. Don't they usually charge some extra fee, like a few cents for every dollar you put on the card?

Re: Amex Blue Cash

CreditMuppet — Tue, 01 Nov 2011 19:08:34 GMT

@Anonymous wrote:
@CreditMuppet wrote:
@Anonymous wrote:
If you doubt that buying gift cards at a grocery store works to get 6% back, just take a look at your CC statement. Does it give you an itemized list of what you actually purchased? Or does it just say "insert grocery store here Purchase"? AMEX doesn't know what you bought from the grocery store, just that you made purchases there.

I mean, if they didn't give you 6% back for buying a gift card from a grocery store (because a gift card is not a "grocery), they would probably also refuse 6% back on all other non-grocery items you can purchase at a grocery store.
Its about what code the store reports to the merchant gateway not anything to do with what was actually purchased. ie walmart report any transaction as "Discount Store" thus anything and everything purchased there will NOT earn 6%

With regard to buying gift cards at a store that reports all transactions as "grocery store" yes that should work, as long as that store has a policy of "no gift card purchases with a credit card". At walmart you would be out of luck.

Simple really.

Yup, makes sense to me. I never thought of buying gift cards from the grocery store though. Don't they usually charge some extra fee, like a few cents for every dollar you put on the card?

Some might but I think most dont. I would never really bother to go this route as it seems like a lot of hassle to save a couple of $

Re: Amex Blue Cash

Anonymous — Tue, 01 Nov 2011 19:13:06 GMT

If it's a store gift card, normally no. I've only seen amex and visa gift card that have purchase fees

Re: Amex Blue Cash

Odiseous — Tue, 01 Nov 2011 19:50:29 GMT

Yup, makes sense to me. I never thought of buying gift cards from the grocery store though. Don't they usually charge some extra fee, like a few cents for every dollar you put on the card?

As Johnnie pointed out, some Pre-paid "credit" cards may gave a fee associated to load, or activate them.

Most other types of cards don't (store "gift" cards).

One thing you have to watch for though; is retailers incorrectly charging you sales tax for the Gift Card. Note: check your local and Federal tax laws, to see if the initial Gift Card purchase is taxable in your area.

I've heard of many retailers charging sales tax, at the time the Gift Card is purchased. Then whomever uses the Gift Card for purchases also gets taxed, on taxable items, at the time the Gift Card is used for the end purchase. These same retailers also usually refuse to credit the sales tax, or refund the purchase.

As an example: If you're getting charged 8% sales tax on a $100 Gift Card, and get 6% cash back from your BCP; you've already lost 2% (approximately) on the deal.

Edit: Must learn to proof-read first, post second.