Stuck with Gift Cards? Not Really, Thanks to These Options

Gift Card Problems

Many points and miles hobbyists dabble in gift cards to take their earnings to new levels.  And we do so in very creative ways, covering a variety of methods.  Among other options, some hobbyists resell them, buy discounted ones to consume, and/or simply use lots of them.  I don’t participate in the first one, but I enjoy the latter two.  I recently experienced one of the more infrequent gift card problems – for me, at least.  For a change, I was happy to not be a victim of gift card fraud.  Rather, after my preferred method of use died, I was stuck with some.  Here’s how I used them up without too much effort.

Taxes

I used several of the gift cards to make estimated federal and state tax payments.  By doing so, I earned credit card points while paying a relatively-lower fee on such payments.  Debit card payments, including ones made with gift cards, are subject to a flat rate (now hovering just over $2), while credit cards come with a percentage fee based on the transaction amount.  Here are the options for payments to the IRS.

When it makes sense, I also use certain gift cards for real estate tax payments on my home, as well.

Utilities

I enjoy paying bills without a fee using gift cards, and it’s even better when those bills are based on our natural consumption.  For instance, no matter how thrifty we are, we’ll have water and electric expenses.  I paid the current bills and ahead for future periods.

Unbonused Normal Spend

We’re inevitably subject to expenses where we don’t achieve a bonus category multiplier on credit card spend – if the entity takes credit cards at all.  So by using gift cards in these situations, we’re avoiding additional fees and aren’t missing out on extra points.  Here are just a few examples:

• School extra-curricular activities
• Tithe/charitable donations
• Insurance payments
• Car registration

Gifts

We used a bit of these gift cards to buy gifts for family and friends.  Sure, we probably missed out on some bonus categories or fuel points by doing so, but the key is we weren’t paying fees to use on the cards (more on that below).

Pay A Bit, and You’re Done

Here’s where things can get simpler, or more complex – depending on the person or situation.  I purchased these gift cards for a specific use which is no longer available.  Before doing so, I knew options existed to use these gift cards while paying a fee.  Indeed, if I didn’t mind the fee, I could scrap the above options and just pay the fee to use all of them.  But I knew I had normal ways to use the cards without the fee, so those won out.

Conclusion

Things are great, until they aren’t.  When it comes to gift card problems, consumers primarily focus on being the victim of fraud.  But anyone dabbling in gift cards should have contingency plans if their primary options for using them dry up.  And it’s key that anyone looking to use gift cards should not create unnecessary spending while doing so.  That contradicts the pursuit of credit card rewards in the first place.  So think through all of your points and miles options before taking on new endeavors.  While you may not feel all the preparation is warranted, you’ll be ready when those surprises occasionally appear.  Have fun!

Disclosure: Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.

---

Lower Spend - Chase Ink Business Preferred^® 100K!

Chase Ink Business Preferred® is a powerful card that earns 3X Ultimate Rewards points in a broad range of business categories on the first $150K in spend per year. Right now earn 100K Chase Ultimate Rewards points after $15K $8K spend in the first 3 months with a $95 annual fee.

Learn more about this card and its features!

---

Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.