Buying Gift Cards at Supermarkets - 5% cash back

Thanks to FFGuru for revising his excellent rewards card thread to touch on something I have been thinking about for awhile. While some discussion (and a list) has started in that thread, I think this topic merits its own thread.

Within the past couple of years, supermarkets have started selling gift cards of all types. I've seen gift cards for Disneyland, Sears, and Macaroni Grill--just to name a few. With a little planning, those of us who have rewards cards that offer 5% Cash Back at supermarkets can take advantage of these gift cards to extend the 5% reward beyond the supermarket realm. This might come in especially handy for large purchases, such as buying a fridge at Sears.

Has anyone developed a good strategy with respect to these gift cards? Has anyone had any positive/negative experiences? For instance, does Sears have a cap on how much in gift cards you can apply to one purchase? Or has buying these gift cards raised any red flags with your CC issuer?

Is there any interest in trying to develop a list that covers the types of gift cards available at specific supermarkets? I know FFGuru started one in his thread, but it might be valuable to pool our resources and try to come up with a somewhat comprehensive list that could point FW'ers to specific supermarkets if they are in need of a specific gift card.

Thoughts?

Edit: Dealpass has come up more than once in this thread. Since Dealpass isn't discussed much in FW Finance, I thought it would be helpful to refer people to the definitive Dealpass discussion taking place over on FW Deal Discussion.

Edit #2: New, focused FW Finance discussion of Dealpass found here.

The Dealpass offers are a better option for GC buying. Sure 5% is nice, if you need it today. But if you plan, 10-20% through the DP programs is obviously a better deal.

20% Home Depot / Lowes + 10% Lowes Coupon + Clearance Items = Fatwallet Deal

maddybeagle said: I have used my citi div. select card at supermarkets to buy a few gift cards. The problem is that some of the cards expire or lose credit after awhile. I personally think doing this probably just makes you spend more.

That's an important point. I think the key is to have your purchase already planned out.

Doing research online, it looks like you can buy Kroger gift cards (Ralph's, Food 4 Less, Kroger, Smith's etc.) that are good at any Kroger family store, including 3 jewelry stores--Fred Meyer Jewelers, Barclay Jewelers and Littman's Jewelers.

So this might be one way FW'ers can save an additional 5% on a big, preplanned purchase for a significant other.

I'm just wondering, why buy the gift card at all? If your credit card gives you 5% CashBack, just use your credit card when you make a purchase at the store. I can only see this strategy justified if it's a limited time offer (for 5%) or if the store offers you incentives to buy their gift cards. If not, I think you're just taking on more risks because you might lose those gift cards.

I just realized that you guys were talking about giftcards to other places, and not the grocery store's giftcard. 4% difference is not worth spending my money on something i don't really need.

Our company offers 20% off certain giftcards (Macy's, Brinkers Restaurants, etc...) and a ton of people line up to get them. On the flip side, a lot of people don't get them because they think it'll give their significant other an excuse just to go shopping.

But like someone else said:

20% off Macy giftcard + 10%-20% coupon in the mail + clearance item = Fatwallet deal.

scanlan17 said: I just realized that you guys were talking about giftcards to other places, and not the grocery store's giftcard. 4% difference is not worth spending my money on something i don't really need.
C'mon man, think about it. OP is not talking about just casually buying GC's. If you're going to some retailer to buy something anyway, why not plan ahead and get an easy 5% off with the GC?

I buy restaurant gift cards at the grocery store. My son gets a free personal pizza every month from Pizza Hut for school. I buy the gift card and then the we use it when he gets his certificate.

FYI - For those with the Citi Simplicity card you do not get 5% back at grocery stores, but you will at drugstores and gas stations. I've used this to buy gift cards at Wawa and I've gotten the 5% back. This was really nice at the end of last year when I didn't hit my annual limit, so I bought a few hundred in wawa gas cards which I know I will use. Same principle works for Sunoco, shell, etc gift cards.

HEATHER77 said: I buy restaurant gift cards at the grocery store. My son gets a free personal pizza every month from Pizza Hut for school. I buy the gift card and then the we use it when he gets his certificate.

Me too! I also buy at the gift cards at Giant Eagle, which also gives fuel perks. You earn 10 cents off a gallon of gas for each fifty dollars spent, including gift cards. Saves about 10% when you have a 25 gallon fuel tank and a 5% CC rebate. Add coupons for a pizza or buffet for everyone else, and it's a cheap night out for the family.

And if you use a 2% back credit card DP giftcards are more like 22% off - actually I guess 21.6% off.

Just need to know a couple weeks in advance, and be sure you'll have enough volume/goodtiming to compensate for fees.

Go to the menu right below forums and click on "DEAL DISCUSSION". Then look for dealpass or 20% - lots of info (accurate and inaccurate) there. Or just expect folks here to restate it all...

SUB said: I cannot believe that someone would advocate buying GCs at face value to get 5% on their credit cards when you can get GCs at 20% off thru DP and other programs.

You act like it's one or the other. Say I plan to go to Olive Garden tonight, how is dealpass going to work for me? Or how about if there is a Hot Deal this week at Staples, Circuit City, etc? An xtra few percent is better than nothing.

Nothing beats Dealpass for gift cards. But you can't plan for every potential GC use 1-2 weeks in advance.

VTrain said: SUB said: I cannot believe that someone would advocate buying GCs at face value to get 5% on their credit cards when you can get GCs at 20% off thru DP and other programs.

You act like it's one or the other. Say I plan to go to Olive Garden tonight, how is dealpass going to work for me? Or how about if there is a Hot Deal this week at Staples, Circuit City, etc? An xtra few percent is better than nothing.

Nothing beats Dealpass for gift cards. But you can't plan for every potential GC use 1-2 weeks in advance.

I agree with you that you can't plan for every possible scenario. Realistically speaking - if you're going to Olive Garden tonight, why not use your 5% restaurant card (you do have one, right?) as opposed to buying one from the store (assuming your supermarket sells OG cards, and that you have time to go to the store). It is the same percentage and you don't have to worry about leaving $$ on the gift card.

If, on the other hand, you go to Olive Garden a lot - then you can definitely plan for this ahead of time. DP cards usually take 4 business days to receive after you place an order.

Also, the OP said this:
This might come in especially handy for large purchases, such as buying a fridge at Sears.
I definitely hope that one would plan ahead for large purchases (this is FWF after all).

One advantage of buying GCs at a store as opposed to DP is the DP monthly/yearly fee, but there's ways to minimize those.

Fees are killer on those AMEX cards.

SUB said:
I agree with you that you can't plan for every possible scenario. Realistically speaking - if you're going to Olive Garden tonight, why not use your 5% restaurant card (you do have one, right?) as opposed to buying one from the store (assuming your supermarket sells OG cards, and that you have time to go to the store). It is the same percentage and you don't have to worry about leaving $$ on the gift card.


Which credit card are you referring to, that gives 5% back from restaurants?

Also, for most people, having a different credit card for each type of store they shop at is not a realistic option.

manuel said: sigh. Please search. Was probably referring to discover rest. or citi mtvu or citi prof. or another card with 3-5% back on all restaurants. Very good thread on this if you look.

Not really relavent, but if one's not ready to carry a few cards around this thread is not a place to loiter...

I did search, and I'd already seen that thread. The only 5% restaurant card there is the mtvu card, which is only for college students. Discover restaurant card is no longer available.

VTrain said: manuel said: sigh. Please search. Was probably referring to discover rest. or citi mtvu or citi prof. or another card with 3-5% back on all restaurants. Very good thread on this if you look.

Not really relavent, but if one's not ready to carry a few cards around this thread is not a place to loiter...

I did search, and I'd already seen that thread. The only 5% restaurant card there is the mtvu card, which is only for college students. Discover restaurant card is no longer available.

I've got it. Look at citi prof. & AMEX costco true rewards as options.

Billiken said: SUB said: Billiken said: SUB said: I cannot believe that someone would advocate buying GCs at face value to get 5% on their credit cards when you can get GCs at 20% off thru DP and other programs.

Okay, well fine then. If "DP" and these other programs are so great, maybe you'd like to take the time to share why, and how for the rest of us?

Hmm, maybe a link even would be nice?

did YOU search?

Why yes, I did. Thanks for asking though. Try seacrhing for Deal Pass, and Gift card. I don't see any information of any value... Do you?

As a favor to the rest of us, I'd sure link the info if I could find it though. That way not everyone is wasting time looking for the same information.


If you look in "DEAL DISCUSSION" as I suggested you'll see a thread with 3875 replies on this very subject!

I purchased a fridge and new carpeting at Home Depot, total around $2K, with giftcards purchased at a local supermarket. The guy asked where I got all the gift cards, so I told him I purchased them at the supermarket to get the 5%. He thought it was a great idea. He did have to check with a manager to make sure it was OK to take so many gift cards, but the manager said it was ok. It did take a long time for him to enter all the gift cards into the system.

Excellent. Will do that from now on.