AA Gift Cards - Save 10% @ Costco [only remaining supply left - phasing out]
Jun 15, 2012, 6:08 pm
#1201
Join Date: Nov 2004
Location: Oakland
Programs: AA Explat, UA former 1K + PremExec, DL
Posts: 1,151
I'm not familar with the terms of the Costco AMEX, but since you are actually prepaying for AA tickets and not really a cash card, so it just might qualify.
SPG AMEX is a different card altogether, but as stated above you're buying AA tickets so not surprised (especially since I have used my SPG AMEX too and no issues there).
SPG AMEX is a different card altogether, but as stated above you're buying AA tickets so not surprised (especially since I have used my SPG AMEX too and no issues there).
Jun 15, 2012, 8:05 pm
#1202
Join Date: Nov 2006
Location: Times Square
Programs: SPG Gold, AAdvantage
Posts: 1,397
As others have noted, many jurisdictions do not charge sales tax on the purchase of gift certificates or gift cards. Could you share with us the jurisdiction you had in mind when you posted this? I'm not familiar with any jurisdiction that charges sales tax on the purchase of gift cards.
Jun 16, 2012, 12:30 pm
#1203
Join Date: Oct 2009
Location: SFO, LON
Programs: BA GGL/CCR, Bonvoy Tit, Hilton Dia etc etc
Posts: 2,354
Not so many now ... 
Bought a whole load myself yesterday, they didn't have enough in the standard retrieval area, but she went back and came back with a couple of handfuls of them. Not unusual to see people hauling out thousands of dollars' worth of these according to the cashier, he'd been doling them out in buckets. 10% + 2% exec member cash back + MR points replenishment on the AMEX. What's not to like? Might go in and get another bucketful this week too, it makes sense to stockpile 'em somewhat at least for potential travel in the next 12 months or so.
Bought a whole load myself yesterday, they didn't have enough in the standard retrieval area, but she went back and came back with a couple of handfuls of them. Not unusual to see people hauling out thousands of dollars' worth of these according to the cashier, he'd been doling them out in buckets. 10% + 2% exec member cash back + MR points replenishment on the AMEX. What's not to like? Might go in and get another bucketful this week too, it makes sense to stockpile 'em somewhat at least for potential travel in the next 12 months or so.
Jun 16, 2012, 4:58 pm
#1205
Join Date: Oct 2009
Location: SFO, LON
Programs: BA GGL/CCR, Bonvoy Tit, Hilton Dia etc etc
Posts: 2,354
Er ... no, most of my flights are corp paid, it would take me three or four years to work through that many. But I'll think about it next time I go, as really there isn't much downside to stocking these up other than the fact you're tying up so much cash in the things. Then again these days it's hard to get 12% return on anything
Jun 20, 2012, 1:53 pm
#1206
Join Date: Jul 2005
Location: SJU
Programs: Amex FHR elite travel agent, Ritz Stars, Hyatt Prive, Four Seasons Preferred Partner and others
Posts: 1,521
Even though not explicitly stated anywhere in the terms, you cannot use these on a fare difference or a change fee. The only reference to this is "initial purchase," but IMHO that is not clear enough.
Jun 20, 2012, 5:02 pm
#1207
Join Date: Jun 2011
Location: WAS
Programs: HYATT DIAMOND, SPG Gold, Hilton Gold, Carlson Gold, DL SILVER,
Posts: 158
i understand that 12% is a good deal. but why are poeple buying 27k worth of gift cards? is it because that they might stop selling these at costco? I was planning on buying a few at times i need them but it seems like i should be hoarding them too?
Jun 20, 2012, 5:08 pm
#1208
Join Date: Sep 2011
Location: Frisco, Texas
Programs: AA Gold, SPG Gold, Hyatt Plat
Posts: 95
Jun 20, 2012, 8:22 pm
#1209
Join Date: Jun 2011
Location: WAS
Programs: HYATT DIAMOND, SPG Gold, Hilton Gold, Carlson Gold, DL SILVER,
Posts: 158
i didnt know some costcos did not have them.
Jun 21, 2012, 8:30 am
#1210
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,037
Why not? They're returnable to Costco, the time-value-of-money is basically nil these days (unless you don't pay your Amex off, of course), and the risk of them being gone when you need them is definitely out there.
For me, I've got a family of four, so that alone eats up plenty. Next, I have some SWUs I'd like to use before they expire.
Jun 21, 2012, 10:05 am
#1211
Join Date: Jun 2008
Location: US
Programs: AA EXP 1MM, Starwood Gold, Hyatt Diamond
Posts: 1,020
+1 on the hoarding. Costco looks at me funny when I buy $21k worth of gift cards. The thing is, they don't sell them in Dallas, so I have to buy them whenever I'm in Houston/LA.
Jun 21, 2012, 11:20 am
#1212
Join Date: Sep 2005
Posts: 2,731
For those who are going into the $10K or $20K range, to be used over a several years, I would suggest taking a digital image backup of all the cards.
After all, few people keep $20K cash in house for a reason, and the AA GC is good as cash (or in the case of losses, as bad as cash).
Also, make sure you have a good system to track the cards. If you misplace a few, you would have given back most of the discounts to AA.
After all, few people keep $20K cash in house for a reason, and the AA GC is good as cash (or in the case of losses, as bad as cash).
Also, make sure you have a good system to track the cards. If you misplace a few, you would have given back most of the discounts to AA.
Jun 21, 2012, 11:25 am
#1213
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,037
For those who are going into the $10K or $20K range, to be used over a several years, I would suggest taking a digital image backup of all the cards.
After all, few people keep $20K cash in house for a reason, and the AA GC is good as cash (or in the case of losses, as bad as cash).
Also, make sure you have a good system to track the cards. If you misplace a few, you would have given back most of the discounts to AA.
After all, few people keep $20K cash in house for a reason, and the AA GC is good as cash (or in the case of losses, as bad as cash).
Also, make sure you have a good system to track the cards. If you misplace a few, you would have given back most of the discounts to AA.
Jun 21, 2012, 11:30 am
#1214
FlyerTalk Evangelist
Join Date: Nov 2003
Location: South Florida
Programs: AA LTG (EXP), Hilton Silver (Dia), Marriott LTP (PP), SPG LTG (P) > MPG LTPP
Posts: 11,329
Actually all you need is the card number and PIN. The physical card has NO VALUE. It is not handed over to anyone, especially when used online, so safe guarding the card is only required to keep someone else from trying to use it. I doubt Costco will take back a card that has had the PIN exposed so you may as well shred the card AFTER you have recorded the number and PIN.
Jun 21, 2012, 11:30 am
#1215
FlyerTalk Evangelist
Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
Posts: 31,789
I hope that people aren't buying several years' worth of gift cards at one time, as the annual return basically evaporates if they aren't used within a year or two.
Right now, the gift cards produce a total return of 13.11% if used within a year. The 2% executive rebate remains constant no matter how long it takes you to use them (since you get that within a year), but the 11.11% return ($30/$270 = 11.11%) begins to shrink dramatically if you don't use them up quickly.