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Giftcards.com Lowering Portal Cash Back to 1% on April 6

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

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Total fees: $42.20

– Cash Back Earned: $25

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= 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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Ariana Arghandewal

30 Comments

  1. I don’t like the drop, going to stop buying giftcards.com unless there’s needs for manufactured spending. Your $6.88 does not include cost to liquidate, so actual number is slightly higher. Considering SPG is well worth 2 cents, It’s still not a bad deal, but I’m not enthusiastic for the change.

  2. You have not had any red flags on your Amex SPG manufacture spending? I’m still trying to meet my minimum and am thinking of gift cards through GCMall. just don’t want to get shut down

    • No, but that’s because I’ve cooled off in the last three months. I don’t think I’ll be putting any ms on that card for a long time. It’s just regular bills and the odd TPM gift card purchases for now.

  3. you are talking about giftcards.com but what about giftcardmall – same deal? also, maybe time to explore if there are other cashback portals that still offer somewhat higher rate

    • I haven’t heard about Giftcardmall dropping their rates. I haven’t been able to get an order approved with them for years, so it wouldn’t make a difference for me personally. But you’re right – might be time to start looking elsewhere.

  4. I’m curious to find out if gift card mall will remain the same or, is it also dropping? Thanks!

  5. Agree with Ariana. Maybe after we cool down for a while, the rebate rate would go up again.

  6. ugg! my part time job just got a pay cut !! BIG THANKS! for keeping us informed Ariana !!!

  7. Why not use one of the other cashback portals that pay 1.2% rather than sticking with Yazing at the lowered 1% rate??

  8. This puts a damper on things, but I still think there is value. I am usually doing about 75 to 100k of ms a month and I think if you combine this with the Discover Miles card to subsidize some of the cost, you should be fine. What do you think Ariana?

    • I don’t know what Ariana thinks but I think it’s a great idea.
      James, how many cards do you use to MS that many miles per month?

  9. @Ariana The last couple of days I have been trying to maximize the 5k at GC.com and have not been able to log in a couple of times. When I go to login, the page does not load. I first noticed this when I was up at Tahoe last weekend at a Hampton Inn. When I came back home, I was able to order again. Now last night I was not able to login to my account. Do you think GC.com blocked me? Should I set up a VPN? Have you experienced something like this?

    • They are doing a large site rework. It is temporary.

      Also on the change to e-gift card payout to 2% – this is for merchant egift cards not Visa egift cards.

  10. Not sure how you are able to order five $500 gift cards from Giftcards.com. but when I do it, it allows only four, stating that $2,500 (five cards) plus five times the fee ($6.95) is $2,527.80, which is over the daily limit of $2,500. So I have had to scale the orders back to four. What am I doing wrong? Or is there a technique to ordering?

    • Not exactly $2500 per order, I was able to order $2465 ($500×4, $465×1), the cards and activation fee add to $2499.75. Plus $7 something for shipping, the totally comes to little over $2507. Also, my impression is that, it’s $2500 per order, not per day.

      • @Ariana. Good to know that I do the same thing. I do 4 @ 500 and 1 @ 450 for the same reason. Just make the 450 a different design to differentiate and do a rapid reorder twice a day. The total ends up being $2492.20. Ramped up the MS to about 50k a week. I have it down to only 5-6 hours of work a week due to a friendly WM 10 minutes away.

  11. FYI: Giftcardmall.com is also lowering payout to 1% on VGCs. Effective 4/11 on Yazing; already effective on TCB.

  12. So, you buy the gift cards then they ship them to you and then you take them to WM? Where can I go to read up on how to learn how to MS? Some people are spending 100K a month?!?

  13. I have been placing orders with GCM using Yazing on May and now Jun and the reported cashback from Yazing is 2%; to get around the 250 max value on cards, I created a personalize card, this way you can get the 500 dollars cards. I normally order 1500 a day with free shipping and 2% cashback

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