Originally Posted by MoreMilesPlease
Gift cards are the same as cash. Most stores will not let you "buy cash" with a credit card. If the card was stolen or you were defaulting on it etc... then buying gifts cards is essentially the same as getting a cash withdrawal from the credit card without paying the cc fee for it.
I am sitting here with my December 29th HHilton Amex statement, looking at the 12/16/05 transaction of $250 at Wal-Mart #1497 in Matteson, IL for a gift card.
I promptly took said card next door to Sam's Club and obliterated most of the value.
Not coded as a cash advance, and no interest or fees. It is coded as "General Merchandise." I have done the same numerous times with a Citibank AAdvantage MAAstercard.
Of course, I have not done this at "most stores," but have certainly done so at in at least 6, in 3 states. Perhaps I have just been extraordinarily lucky, but I doubt it.
I just got a Costco Amex and will have to try what
fschmidt did to get a bit of cash rebate.