Adam over at Yazing just notified me that Giftcards.com will be lowering their cash back rates for Visa gift cards to 1% on April 6. Meanwhile, e-gift card payouts are doubling to 2% cash back. So if you’ve got a spending requirement to meet or if you’re trying to earn miles cheaply, you still have some time to take advantage of the current 1.25% cash back rate. It’s really unfortunate that Giftcards.com has continued to drop payouts, which was as high as 2% not to long ago.
Now the question for many of you is whether to continue buying Visa gift cards from Giftcards.com at 1% cash back. Previously, it cost roughly $10.95 to generate $2,500 worth of manufactured spending via giftcards.com at 1.25% cash back. Now, a $2,500 Visa gift card order will cost $17.20:
Gift Card Fees: $6.95 x 5 = $34.75
Shipping fee: $7.45
Total fees: $42.20
– Cash Back Earned: $25
= Total cost for $2,500 worth of manufactured spending: $17.20
At $6.88 per $1,000 this still works out cheaper than buying Visa gift cards at your local mall, which would set you back $7.90 per $1,000. While that $1.02 difference may not seem like much, it adds up in large quantities. For example, if you’re saving up 100,000 miles then you’re saving $102 by purchasing your gift cards online rather than at Simon Mall. So it absolutely makes sense to continue buying Visa gift cards through Giftcards.com, using the Yazing cash back portal. It still works out cheaper than Simon Mall.
This decrease in cash back rewards obviously means you’re paying a little more than before. At 1% cash back, you’re paying almost 70% more in fees to earn the same number of miles. Again, it’s still the cheapest option but it is an increase you should keep in mind. It’s important to always keep your budget in mind when you’re churning gift cards. It’s easy to just go with the herd and take “this is a great deal!” at face value. You shouldn’t just spend money because everyone else is doing it. Do the math, decide whether spending $688 out of pocket to earn 100,000 miles makes sense for you. Can you afford it and is there a better option out there? Consider these questions and do what works for you.
As for me, I’ve taken a bit of a break from manufactured spending. I think I wore myself out last year when I spent over $300,000 in a single month. Then my Barclay accounts got shut down and I’ve decided to just lay low for a while. I’ll probably take advantage of the 1.25% cash back through Yazing at least a couple of times before the April 6 deadline, but for the most part I’m in hibernation mode.
Are you going to continue buying Visa gift cards through Giftcards.com at 1% cash back?
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