Great discount on eBay Gift Cards
I buy a lot of stuff on eBay. Sometimes I buy the gift card deals that I write about from time to time and other times I buy merchandise to resell. It isn’t uncommon for me to spend thousands of dollars per month at the online auction site.
Whenever you are spending thousands of dollars at a store then you should look for ways to save money. One of the ways to do this is through discounted gift cards. My goto for buying eBay gift cards has been Gyft. When you purchase the cards from Gyft and pay with a Chase Ink card through PayPal, you earn 5X Ultimate Rewards. That is a nice discount in my book. Unfortunately Gyft began limiting the denominations on eBay gift cards to just $25. Yikes!
Another option in the recent past has been to purchase eBay gift cards at Target online and pay with a REDcard. Unfortunately Target recently stopped selling eBay gift cards, which means no discount. Fortunately, there is a scenario I am taking advantage of right now that is helping me save at least 12%.
4X Fuel Points + 5% Cashback
My local Smith’s (Kroger) store sells eBay gift cards in denominations up to $500 each. Normal purchases at Smith’s earn 1 fuel point per dollar spent, however gift cards earn 2 points. That is normally a decent earning rate, but through June 19 they are offering 4 points per dollar on gift cards. To get that rate make sure to login to your online account and load the coupon to your card.
So for the purchase of a $500 eBay gift card, I earn 2,000 fuel points or $2.00 off per gallon. (Max $1 off per fill up.) Normally my wife and I both fill up our cars together and get about 30 gallons of gas, but for this scenario I am going to be conservative and say I only get 18 gallons per trip. (The size of my car’s gas tank.)
- So here is the basic math of my fuel savings: 18 gallons X $1 = $18 X 2 trips = $36 saved.
Not a bad little discount, but it gets better. Many cards earn a grocery store bonus. For example, the Chase Freedom card earns 5X this quarter at grocery stores on up to $1,500 in spend and others have a grocery bonus as well. (Such as my Old Blue.) Of course, I am not using my Freedom, since I have a card that is earning 5X everywhere right now!
To purchase the $500 eBay card I used my BBVA NBA Amex which earns 5% back during the NBA Finals.
- Here is my cashback earned for the $500 eBay gift card: 5% X $500 = $25
So I will earn $25 cashback on the purchase. If I add that to my fuel savings, I save about $61 total off of the $500 gift card. That makes the math look like this:
- $500 – $61 = $439 final cost
- $61/$500 = 12.2% savings!
Every time I post a deal like this people come up with their own scenarios of why this isn’t a good deal. Here are some consideration you should make, but that I won’t include in my math:
- How far the Smith’s/Kroger gas station is from you and how convenient it is to visit.
- If there are cheaper stations in your local area.
- How much you would earn in credit card rewards on a simple eBay purchase opposed to using the gift card.
- The fact that fuel points expire the month after they are earned.
With That Said…
This is a good deal. I actually plan to save about $60 on gas since we will probably get 30 gallons per visit. That bumps my overall discount up to 17% which is great in my book. No matter how you slice this, the fuel points make the deal if you can redeem them.
While I am sad that I can’t easily rack up 5X Ultimate Rewards on eBay gift card purchases, I plan to use my NBA Amex to stockpile a few months worth of eBay gift cards. The Smith’s gas station is one block away and while they are about $.10 more expensive than Costco, it is farther away and I am still coming out way ahead with this method.
Am I wrong about this being a good deal? Found a way to save even more on eBay gift cards? Let us know in the comments!