Discover the Advantages of Gift Cards

Purchasing gift cards can help you meet the spending requirements of some credit card bonuses. For example, the Blue Cash Preferred from American Express offers 3% back at supermarkets and wholesale clubs (and 1% elsewhere).

The card also offers 5% back at retailers like Nike, Bath & Body Works, JCPenney and GAP. You can redeem these rewards for a statement credit or a direct deposit to your bank account.
Earn 5% Back

If you want to get the most value from a credit card, consider buying gift cards with it. For example, if you have a Discover credit card that offers 5% cash back on certain spending categories each quarter (like wireless plans, utilities or TV and internet services), you can redeem the rewards for gift cards to those companies and get a corresponding discount, such as 20% of the total value of the gift card.

The best 5% cash-back cards offer rotating quarterly bonus categories and allow you to activate each quarter to maximize those categories. You can also find 5% gift card discounts at many retailers, from major chains like Target and Walmart to smaller shops and websites that specialize in selling gift cards.

To determine which credit cards are the best 5% cash-back options, WalletHub compares more than 1,500 credit card offers. We first identify cards that earn at least 5% in at least one major purchase category, then calculate how much the average person would earn in total rewards value per year, after accounting for fees.

While 5% rewards cards are attractive for some, they may not make sense for everyone. These cards typically require you to meet minimum spending requirements each quarter in order to earn the higher rewards rate, and they often come with a annual fee that can offset the potential benefit of the 5% reward rate.

A good alternative to 5% back cards is a flat-rate cash-back credit card, which typically has no annual fee and offers a 1% or 2% cash-back on all purchases. Many of these cards also allow you to transfer your earnings to a bank account in the form of statement credits, which is convenient for some shoppers.

The U.S. Bank Cash+ Visa card, for example, pays a generous 6% cash back on the first $1,500 spent each quarter in two of the cardholder’s choice of bonus categories (like grocery stores, restaurants or gas stations), then provides 2% on all other purchases. You can redeem your cash back for gift cards at Bath & Body Works, Nike or Under Armour, and the company adds value to the gift cards to boost their initial value.
Easily Redeem for Gifts

Gift cards make holiday shopping a breeze by eliminating the guesswork about what someone else might want. But despite being one of the most popular gifts, billions of dollars in gift card value go unredeemed each year. Here are a few tips to help you maximize their potential.

1. Choose retailers with high customer satisfaction ratings.
When redeeming for gift cards, choosing a retailer with a high customer satisfaction rating can improve your chances of getting exactly what you need from the card. Use third-party apps like Yelp and Fiverr to learn more about the reputation of a retailer and how others have experienced it.

2. Beware of Overspending
Two-thirds of people who receive gift cards spend more than the cards’ face value, according to Consumer Reports. While you can always return the excess, it’s a good idea to limit your spending. This will help you avoid wasting money and potentially racking up credit card debt in the process.

3. Shop with a Credit Card
Purchasing gift cards with a rewards credit card can boost your earnings. Many cards offer a bonus when you buy them at certain locations or in specific categories. For example, the Ink Business Cash earns 5% back on office supply store purchases (on up to $25,000 in annual bonus spend) and Staples typically has a robust gift card selection. However, it’s important to remember that attempting to manufacture credit card spending by snapping up gift cards for items you would have purchased anyway could land you in hot water with your card issuer and the merchant.

4. Earn through Surveys
While taking paid online surveys won’t make you rich, it can be a quick and easy way to earn gift cards. Look for sites with a high Trustpilot rating and be sure to fill out your profile completely, so you’ll receive only the most relevant surveys. The free site InboxDollars, for instance, currently offers a $5 sign-up bonus.

5. Redeem Your Credit Card Points for Gift Cards
Most major credit cards allow you to redeem www fivebackgift com
your earned points or miles for gift cards at a variety of retailers. This can be a great option if you don’t have enough rewards on your card to make a purchase or if you’d rather put the money toward a gift card for someone else.
Reloadable Cards

The Five Back program offers 5% cash back on purchases made at participating merchants. Earnings will be added to your card balance within 48 hours. See the FAQ page for additional information about how to redeem your earnings.

There are some rules and best practices that should be followed when using a credit card to buy gift cards. For one, it’s generally frowned upon by credit card issuers to use gift cards to hit spending thresholds for a credit card signup bonus. Doing this could potentially lead to your card issuer clawing back rewards and even shutting down your account altogether.

In addition, it’s important to read the fine print of a prepaid card before buying it with a credit card. Prepaid cards can carry activation, maintenance, and inactivity fees, which can eat into the value of the card. Additionally, some prepaid cards are reloadable while others don’t have this option.

Gift cards started out as a way to purchase items at specific stores, but now most major charge or credit card issuers offer gift cards that are good anywhere those payment networks are accepted. These are known as open-loop cards and can be used to make purchases online, in store, or over the phone. They may or may not be reloadable, depending on the card and the issuing company.

It’s also important to note that some prepaid cards issued through loyalty, award or promotional programs can expire without any restrictions. In general, however, the CARD Act requires that non-reloadable prepaid cards issued by credit card companies last at least five years.

Todd Stearn is the founder of The Money Manual, where he helps 300,000 monthly personal finance and TikTok readers save, earn, and feel confident about their finances. He is a regular contributor to CNN, Business Insider and Fox News, and has written for Teen Vogue, The Los Angeles Times and other publications. He lives in Brooklyn with his wife and three children. To contact him, email tmd@themoneymanual.com. Follow him on Twitter and Instagram.
Free Shipping

If you have a Visa Five Back gift card, you can earn cash back on prepaid cards that have been purchased with credit. This is a feature that most people don’t know about, which could mean that they are leaving money on the table when purchasing pre-paid gift cards.

The Visa Five Back gift card, which was launched in October of this year, offers 5% cash back at Amazon and Whole Foods Market. It also has bonuses for spending at restaurants and gas stations, and it even has a bonus category for local transit and commuting (including rideshare). However, there are some restrictions, drawbacks and costs to consider before deciding whether this card is right for you.

For example, this card has no annual fee, but it does have a 3% foreign transaction fee. In addition, there are some additional fees such as shipping or purchase fees on physical gift cards, which can eat into any rewards you might be able to get from the card. This is why it’s important to do your research before choosing a card.

Another consideration is that not all prepaid cards are the same. Some are branded by a specific retailer, while others are part of payment networks like Visa or Mastercard and can be used anywhere that accepts those cards. Some prepaid cards are even reloadable.

For example, the Discover it reloadable gift card allows you to add value to your rewards when you redeem them for gift cards to Bath & Body Works, Nike or Under Armour. The added value can be as much as 20% of the value of your cash back. That can be a great way to stretch your rewards and make them go further than you might think. However, it’s always important to remember that the values of any prepaid card depend on the marketplace and are not guaranteed. While these tips can help you save on the cost of buying a prepaid gift card, it’s essential to understand the terms and conditions of the card before making a decision.