A couple of notes...
- Staples offers $300 VGC now online with better return. Roughly, 33 cards, $270 fees or so, shipped to your door. If you jump on a promotion these stores often have, the fees can be wiped out for a portion at least by going to the store.
- if you have a good cycle/liquidation path, 50 or 100 cards is not intimidating. I liquidated 9 cards last night at a WM Kate, took me 9 minutes max. WM BP is 4/minute probably, PPMC -> Serve or VISA Buxx is from the couch, etc. Liquidating the equivalent of 60 cards isn't a barrier once you find your rhythm.
- I don't have one but would agree, OBC does sound like the bomb as the kids say up to its cap.
Originally Posted by
RJP3
Other than meeting sign-up minimums and other spending targets, all my MS activity goes on 5% unlimited cash back "Old Blue" accounts.
$500 GC at a grocery store:
Cost: $505.95
Cashback: $25.30
Net cost: $480.65
Typical net profit: $19.35 per card after $5.95 card fee
Typical net profit per $10k spend = $387
I say "typical" because that assumes you are paying full gift card fees, which might not be the case. Our local grocery store gives a 1% discount to members of the Booster Club of the local high school, so my net cost per $500 card is only $500.89, for net of $482.20 on $10k spend at that store. Another grocery chain gives gas discounts on spend there, so that would come off the cost column. (And never mind all the free hams and turkeys at Christmas and Easter.)
But lets assume I wasn't so lucky...
Even if I intend to use MS activity for travel, I find it easier and more efficient to use the 5% cash-back money to purchase plane tickets, hotel, etc than to try to generate a lower return in travel points on some other credit card. On a recent trip to the Caribbean a round trip ticket for my selected dates was 50,000 United points... or $730 cash.
Forgetting sign-up bonuses and starting with ZERO points/dollars, look at what that ticket would cost if you used various cards to MS your way onto that flight...
UNITED MILES
$50k in United Visa Spend + $595 out of pocket costs in card fees for 100 $500 cards, which then requires you to liquidate ONE HUNDRED GCs
CHASE UR POINTS
$10k in Ink spend at Staples + $297 out of pocket costs in card fees for 50 $200 cards, which then requires you to liquidate FIFTY GCs
BARCLAY ARRIVAL POINTS
$33k in spend on a Barclay Arrival card + $392 out of pocket costs in card fees for 66 $500 cards, which then requires you to liquidate SIXTY SIX GCs
OL BLUE CASH BACK
$18k in spend on an Ol' Blue card with ZERO net out of pocket card fees and only 36 $500 cards to liquidate.
Far more cost-efficient and time efficient. How long would it take you to liquidate SIXTY SIX visa GCs... to save $340 on a plane ticket compared to the value of your time. You'd probably be earning less than minimum wage on the time you spent going to Walmart every day for two weeks.
PLUS... since I will use the money to purchase the tickets from the airline there are no black out dates, seat availability is good, I can use that airline's credit card to book the flight to earn those miles too (or a Barclay card and then use those points to pay that bill, or purchase the tickets through the Chase travel portal, or use an AmEx to buy the ticket... and points to pay that bill), the actual flight miles/segments flown will count towards status, the flight can be upgraded with a handful of points, etc.