Credit Tips: Credit Cards That Give Cash Back for Gift Card Purchases

Posted On: July 8, 2006

Author: Username
Posted: Sat Jul 08, 2006 1:52 pm
Post subject: Is this true regarding gift cards?

Can you actually go into a grocery store/drug store/gas station and buy a gift card using one of the 5% cash back cards and receive 5% off for example the Home Depot card?

I never realized that these places would take 5% off gift cards also. What a deal?

Has everyone had positive expereience with this and no problems? Shoot, I’ll start buying gift cards from now on and save mula.

Author: Polonius
Posted: Sat Jul 08, 2006 4:53 pm
Post subject:

Yes–that works. As long as the purchase is coded as being from a qualifying merchant in the right category, there’s no problem.

Author: mouse
Posted: Sat Jul 08, 2006 5:20 pm
Post subject: Re: Is this true regarding gift cards?

Quote:

“Username”
Can you actually go into a grocery store/drug store/gas station and buy a gift card using one of the 5% cash back cards and receive 5% off for example the Home Depot card?

I never realized that these places would take 5% off gift cards also. What a deal?

Has everyone had positive expereience with this and no problems? Shoot, I’ll start buying gift cards from now on and save mula.

I get a 10% DISCOUNT at work on top of 1–3 DELTA MILES per $1.00

(selected GIFT CARDS)

Author: Username
Posted: Sat Jul 08, 2006 6:00 pm
Post subject:

I wished I realized this long time ago. I guess you’d actually get an extra 1% off when you used it for a total of 6% off. I’m going to have to start doing that.

Author: Polonius
Posted: Sat Jul 08, 2006 8:01 pm
Post subject:

Quote:
I guess you’d actually get an extra 1% off when you used it for a total of 6%
How do you figure that? If you use a gift card for a purchase, you get no “points” on it. In fact, your net profit is more like 3%-4%–yes, you can buy the gift cards for 5% savings, but when you spend them you do NOT get the 1-2%% you’d get by using a different rewards card to do the purchase, so you lose that reward.

Author: Username
Posted: Sat Jul 08, 2006 8:20 pm
Post subject: Credit Cards That Give Cash Back for Gift Card Purchases

Thanks so much polonius. You are SO right!!

Thanks for straightening me out. I don’t know what I was thinking, but your’re right. duh It’s just the 5%. Still a good deal amigo!

I didn’t think about that….losing the 1% for using the gift card so you DO only get a 4% extra off the purchase. Oh well, better than 1%.

So much thought and finageling (sp?) has to go into all these little scenarios we do to save money.

I was reading another forum on the Citi Diamond Preferred card promo out now. Get 5 years of no interest off card for purchases of gas/grocery and drugstore at 5% cash back. It’s interesting reading. They are saying you use card for just those purchases and since you don’t have to pay off monthly because of no interest, you can put that money into saving accumulating 5% interest and then pay off in 5 years and make money to boot. There’s so many things to consider though and interesting to read how others make it work for them…things I’d never think of. Don’t you just love reading all the little tricks of the trade?