I wrote once about a way to get rid of the gift cards you don’t need. But what if you’re on the other side – giving gift cards? Any perks there? Surprisingly – YES. So, how to save money on buying gift cards? Here’s how:
1. If you have a cash-back program on your credit card – check the terms. Almost all the programs give more points/percentage towards shopping at grocery or drug stores. So, if you want to buy a gift card anyway – use this card when buying the gift card at your local grocery or drug store, and get the higher cash-back rate. On my American Express Blue Cash I can get up to 5% cash back. Imagine that, $5 right back out of the $100 spent on holiday gift cards!
2. If you have a frequent flier program membership, you can gain miles by using the frequent fliers’ on-line mall. Log in to your frequent flier account and look for it, click on the store you like, and get the miles as the reward for your spending. Many stores allow purchasing on-line gift cards, so you don’t really need that good old piece of plastic any more.
3. Similarly, you can use your Ebates.com, Mr. Rebates or other similar site accounts, and get the cash-back through them. Note, that the same store might have different rates on different sites, so it is worth to check several different sites and choose the one that provides the highest rate.
Almost all the major on-line retailers participate in some, or all of the above options. Amazon, for example, provides 3% cash-back on it’s credit card (backed by Chase), and occasionally gives additional cash-back when using that card to buy their gift cards.
Your Little Advisor