GiftCards.com’s New $250 Limit
I have written quite a lot in the past about GiftCards.com Visa gift cards. These cards
are decent for manufactured spend, because they are personalized and feel very sturdy. They also work to load Bluebird/Serve at Walmart. Unfortunately they may work too well.
A couple of weeks ago I wrote about some disturbing changes with GiftCards.com. First, they killed a free shipping code that had been around for awhile. Then they raised the fee per $500 card to $6.95 and eliminated the cheaper first class shipping option. Then today happened.
Just like GiftCardMall before them, Giftcards.com has now limited the maximum denomination you can purchase to $250 with a $4.95 fee. These cards do still apparently earn 1% back in rewards, however the math is not nearly as good, especially considering that you must now deal with twice as many cards. Let’s take a look.
New Giftcards.com Visa Math
The maximum purchase at Giftcards.com is $2,500. That means you could buy nine cards with a total cost of $2,302 including fees & shipping before hitting the limit.
- Cost of cards: $2,302
- Face value of cards: 2,250
- Total fees paid: $52
- Minus rewards earned (1%): $22.50
- FINAL COST: $29.50
- Cost as percentage: 1.31%
As you can see, the cost as a percentage is still not too bad at 1.31% after rewards, however you now have to deal with twice as many cards. For most people this will only make sense when trying to meet minimum spend. There are of course better deals out there if you have a category bonus at office supply, grocery or other stores.
This is another manufactured spending hit in a week that saw a ton of ups and downs. Overall this doesn’t surprise me considering the relatively rapid moves they have made to change things over the past couple of months. Mission accomplished Giftcards.com. Mission accomplished. Time to hit the brakes.
HT: Doctor of Credit