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.
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.
as of 1/1/23
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.
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.
@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.
Using the Freedom Flex I could play the category game and buy Amazon gift cards and get 5% cash back all year.
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.