Disadvantage of using Amazon gift card vs credit card

[iced]

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@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.

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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.

[longtimelurker]

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@iced wrote:

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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.

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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

[iced]

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@longtimelurker wrote:

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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

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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.

[Beast26]

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.

[iced]

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@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.

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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/

[longtimelurker]

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@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.

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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.

[Beast26]

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

[longtimelurker]

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@Beast26 wrote:

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

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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.  

[Beast26]

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.  

[Anonymous]

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.