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Visa Gift Cards at GiftCardMall Analysis
Last week I covered a Quick Deal over on Frequent Miler about the portal Simply Best Coupons offering .4% cash back on the purchase of Visa Gift Cards from GiftCardMall. This deal hasn’t gotten a lot of attention, but I am going to show you why it is pretty good.
The Old Days
I used to purchase Visa gift cards from GiftCardMall pretty often in the “good old days” of 2013/2014. Back then portals were paying up to 4% cashback for Amex gift card purchases. I then used Amex gift cards to buy Visa gift cards and get another portal bonus. It was a complicated, but nice process.
Then GiftCardMall reacted and banned Amex gift cards and eventually portal payouts for Amex gift cards shrunk and GiftCardMall stopped paying out on Visa gift cards. The system, as nice as it was, died.
.4% (.5%) Cash Back Sucks Right?
Update: Thanks to @tovanhung on Twitter for informing me that Top Cashback is now paying .5% on Visa Gift cards which obviously improves the math.
I’m not going to sit here and argue that .4% (.5%) cash back is amazing. It isn’t. With that said, that rebate amount makes Visa gift cards from GiftCardMall affordable, especially for people looking for an easy way to meet minimum spend requirements.
Note: Simply Best Coupons offers $5 for signing up as well. If you use my link I will earn a 5% bonus up to $50, but the $5 offer applies to anyone signing up.
Lets look at a $3,000 Visa gift card purchase from GiftCardMall. This is a very common minimum spend requirement on credit cards, so I think it will help a lot of people.
Here is the math:
- Gift card cost (6 x $500): $3,000
- Gift card fees: $23.70
- Shipping costs: $18.84
- Cashback (.4%): -$12.00
- Final Cost: $3030.54
- Cost per card: $5.09
Update: With TopCashback’s rate of .5% back, the final cost comes to $3027.54 or just $504.59 per card.
Here are a few notes about the math. Portals generally pay out on the face value of the cards not including fees or shipping. That is where I got my $12.00 calculation. ($3000 *.004) As you can probably tell, the math gets better as you purchase more cards.
The shipping method chosen with this order is Critical Mail. When you purchase one card, critical mail is much more than regular mail, but it is about the same cost (within $.20) for 6 cards. Critical Mail is highly recommended as it is trackable.
At $5.09 (or $4.59) per $500 card, this works out to be a roughly 1% cost for manufacturing spend. Sure this isn’t mindblowing or anything, but it is perfectly viable for minimum spend requirements. Most cards earn at least 1% on all purchases, so you really aren’t losing money and on the flip side are earning a sign-up bonus.
Remember too that Visa gift cards from GiftCardMall are very easy to load to both Bluebird & Serve. This is a fairly convenient method of manufacturing spend.
Why not REDbird
REDbird is an amazing product and it does generate $5k per month of fee-free manufactured spend. This works great to meet minimum spend requirements as well as category bonuses. I personally have a card that earns 5x on REDbird loads, so I would prefer to use that to maximize my return.
You can find gift cards at a lot of places of course. The most popular options are probably $5.95 per $500 at grocery stores or $3.95 per $500 at malls.
For more info see: Where To Buy Pin-Enabled Gift Cards for Manufactured Spend
I am truly excited about this development. While .4% (.5%) certainly isn’t great, it brings down the cost of these cards to a manageable level and hopefully more portals will open their coffers back up in the future.
What do you think? Is purchasing gift cards through GiftCardMall a viable method of manufacturing spend?
Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.