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Gift card purchase at grocery store counts as 5% cb?

6,862 469 April 5, 2018 at 06:31 PM
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Chase freedom card 5% cash back this quarter for grocery stores.. if I buy $1500 VISA prepaid card at safe way (grocery store), do I get 5% cash back?

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#2
First off, many stores will not let you use a CC for gift card purchases over a certain amount. Some in certain areas prohibit CC use on it altogether.

That said, generally CC companies can not tell (nor do they usually care) what you purchase as they are getting their cut per transaction. So yes you get the cash back on gift card purchases at grocery stores. That said, if you abuse it to the level where you put $1500 in charges on a CC at a grocery store, it may raise some fraud and\or other alerts and they may decide to look it over. Others here may have more info from their experience.
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#3
Quote from YanksIn2009
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First off, many stores will not let you use a CC for gift card purchases over a certain amount. Some in certain areas prohibit CC use on it altogether.

That said, generally CC companies can not tell (nor do they usually care) what you purchase as they are getting their cut per transaction. So yes you get the cash back on gift card purchases at grocery stores. That said, if you abuse it to the level where you put $1500 in charges on a CC at a grocery store, it may raise some fraud and\or other alerts and they may decide to look it over. Others here may have more info from their experience.
Credit card companies can tell what you purchase. Many have the clause that gift cards do not count towards bonus. "Purchases of gift cards and other cash equivalents do not count towards bonus spending requirement." I know for a fact, that welcome bonus purchases of gift cards no longer works on AMEX.
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Quote from NickG1768
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Credit card companies can tell what you purchase. Many have the clause that gift cards do not count towards bonus. "Purchases of gift cards and other cash equivalents do not count towards bonus spending requirement." I know for a fact, that welcome bonus purchases of gift cards no longer works on AMEX.

I have bought gift cards on Amex at grocery stores and ALWAYS received the grocery store bonus %. Maybe it depends on what gift card\how much or some other metric, but grocery stores do not transfer the details of the receipt to Amex or anyone else when purchasing a gift card. They normally would have no way of knowing unless the merchant POS system is somehow flagging it for them. It is not like they are sending the info that you bought a gallon of milk, some cold cuts oh and yes, a $25 Shell gift card so that Amex can exclude it from their bonus points calc.
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Quote from YanksIn2009
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I have bought gift cards on Amex at grocery stores and ALWAYS received the grocery store bonus %. Maybe it depends on what gift card\how much or some other metric, but grocery stores do not transfer the details of the receipt to Amex or anyone else when purchasing a gift card. They normally would have no way of knowing unless the merchant POS system is somehow flagging it for them. It is not like they are sending the info that you bought a gallon of milk, some cold cuts oh and yes, a $25 Shell gift card so that Amex can exclude it from their bonus points calc.
I only buy a few restaurant, gas cards
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Quote from YanksIn2009
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They normally would have no way of knowing unless the merchant POS system is somehow flagging it for them. It is not like they are sending the info that you bought a gallon of milk, some cold cuts oh and yes, a $25 Shell gift card so that Amex can exclude it from their bonus points calc.
is this fact or your conjecture?
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#7
Quote from dayv
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is this fact or your conjecture?
(similar opinion based on historical experience) As I understand it, there are different levels of data that can be sent from the stores. Most of the time CC companies will not get that level of detail unless it is requested. Back during the $10,000 Discover Apple pay deal, Discover began flagging transactions as gift cards based on how big of a purchase was made (with no detail). Obviously $504.95 purchases were an obvious one.

During that promo, I would routinely buy a $500 GC, some groceries, then use $100-$200 in rebate cards to pay for it so it would come out to $3XX. I think I was only flagged once during the process. When I was, I requested a detailed info from Discover to show what amount related to a GC and what amount related to groceries. They ended up just giving me the full credit.

In the end of it all, Discover ended up giving everyone the bonuses several months later that they initially denied That was a pretty easy $2.5K (converted Discover CB to Staples GC's) deal.

Unless something has changed in the past year, the CC's are likely not getting the data without requests. Amex however is particularly strict to MS.

Regarding the OP, the 5% would more likely than not be counted (Discover/ Freedom). I would break it up into multiple transactions and add groceries to the purchase as well.
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#8
Quote from dayv
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is this fact or your conjecture?

Fact based on personal experience with gas gift cards and ones to B&M stores I buy as gifts for my nieces. Granted it is not like I put more than $100-$150 dollars at a time on the purchases as I get the gift cards as I need them. If you go and spend 500+ dollars at a time or are not buying any groceries so the dollar amount is an even number like $100.00, their system may flag it. I am not looking to MS, just getting the discount on stuff I need to buy anyway.
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Quote from YanksIn2009
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Fact based on personal experience with gas gift cards and ones to B&M stores I buy as gifts for my nieces. Granted it is not like I put more than $100-$150 dollars at a time on the purchases as I get the gift cards as I need them. If you go and spend 500+ dollars at a time or are not buying any groceries so the dollar amount is an even number like $100.00, their system may flag it. I am not looking to MS, just getting the discount on stuff I need to buy anyway.
this "Fact based on personal experience" is not facts, that's anecdotal experience.
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Quote from iBoo
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Chase freedom card 5% cash back this quarter for grocery stores.. if I buy $1500 VISA prepaid card at safe way (grocery store), do I get 5% cash back?
in general, yes, it counts as 5%. some CC companies like AMEX get overzealous and clawback if they see you did manufactured spending, but with chase you should be fine
safeway, by the way, has 15 off when buying 2 $100 GCs. It's $197 for two, but beats having to pay any fees at all
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#11
Quote from YanksIn2009
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I have bought gift cards on Amex at grocery stores and ALWAYS received the grocery store bonus %. Maybe it depends on what gift card\how much or some other metric, but grocery stores do not transfer the details of the receipt to Amex or anyone else when purchasing a gift card. They normally would have no way of knowing unless the merchant POS system is somehow flagging it for them. It is not like they are sending the info that you bought a gallon of milk, some cold cuts oh and yes, a $25 Shell gift card so that Amex can exclude it from their bonus points calc.
Big data is very interconnected in the items you buy. It may not matter to Amex for rewards...but be sure if you switch from whole milk to skim, it's logged.
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