Question about Staples Visa GCs

[aishel]

When I use the staples Visa gift cards, do vendors see it as a credit card or a debit card? In other words, can I use it to pay school tuition without getting charged a 3% credit card fee?

[Gvann]

Its a debit card

[aishel]

Thanks. I was playing with the math and even if they do charge the fee (which is actually 2.85%), I would come out ahead if I used my Ink cash to buy Visa GCs and pay the tuition.

$38000 total tuition.
*2.85% CC fee = 39,083 (total of $1083 in fees).

If I use my Ink Cash card to buy visa cards, I would earn 195,415 points, which when moved to my Reserve account is worth $2931.23.
So my net gain is $1848.23 after accounting for the extra $ for fees.

Is my math correct?

[Gvann]

If you’re using ink cash from staples, you get 5x back, if you get charged a ~3% fee, you’re 2% ahead. Times 1.5 and you’re 3% ahead. If they don’t charge a cc fee (shouldn’t trigger) you’re 7.5% ahead.

Try and wait for a no fee sale on visas so you save a ton of money

[Joeymc]

$38000 total tuition.
*2.85% CC fee = 39,083 (total of $1083 in fees).

If I use my Ink Cash card to buy visa cards, I would earn 195,415 points,

Just keep in mind that you are capped at $25,000 spend for 5x categories per year so you would need 2 ink cash cards

[aishel]

Just keep in mind that you are capped at $25,000 spend for 5x categories per year so you would need 2 ink cash cards

Good call, thanks. I have one in my name as well as my wife's name from when they had the great sign-on bonuses.

[Gvann]

Good call, thanks. I have one in my name as well as my wife's name from when they had the great sign-on bonuses.

@Dan posted that there are mastercards on sale on now from staples, 8 at a time. Hatzlacha, happy i’m not the bookkeeper who has to punch in 200 gift cards

[5/3]

Thanks. I was playing with the math and even if they do charge the fee (which is actually 2.85%), I would come out ahead if I used my Ink cash to buy Visa GCs and pay the tuition.

$38000 total tuition.
*2.85% CC fee = 39,083 (total of $1083 in fees).

If I use my Ink Cash card to buy visa cards, I would earn 195,415 points, which when moved to my Reserve account is worth $2931.23.
So my net gain is $1848.23 after accounting for the extra $ for fees.

Is my math correct?

Something to consider if you have a few weeks or more to pay depending on your credit profile is getting sign up bonuses. There are good bonuses out there for $5,000+ spend depending on the card. It would be great if someone else reading this chimes in with some card ideas. Could easily get 10+% cash and or points back which would more than offset the 3% processing fee.

[yawn]

Something to consider if you have a few weeks or more to pay depending on your credit profile is getting sign up bonuses. There are good bonuses out there for $5,000+ spend depending on the card. It would be great if someone else reading this chimes in with some card ideas. Could easily get 10+% cash and or points back which would more than offset the 3% processing fee.

True, but that can also be done with everyday purchases. So you can get the SUBs and the additional 7.5%. Tuition is unique in that you can often pay large amounts with GCs. Additionally, you can meet you SUB requirement by buying GCs and then use them to pay tuition.

[Gvann]

True, but that can also be done with everyday purchases. So you can get the SUBs and the additional 7.5%. Tuition is unique in that you can often pay large amounts with GCs. Additionally, you can meet you SUB requirement by buying GCs and then use them to pay tuition.

You can just try and get a few of ink cash cards to increase points back, but im assuming that part of the process here is a 0apr business card that lets him hold 40k without interest and slaps to credit score.. unless he’s just paying it off immediately then sign up for a few different cards, but ink cash is probably most lucrative non-special sign up bonus right now, ink preferred 100k with 8k spend is good too but not 0apr

[aishel]

Something to consider if you have a few weeks or more to pay depending on your credit profile is getting sign up bonuses. There are good bonuses out there for $5,000+ spend depending on the card. It would be great if someone else reading this chimes in with some card ideas. Could easily get 10+% cash and or points back which would more than offset the 3% processing fee.

I got the SUBs for the ink cards earlier this year. While I know I could probably get more, I have seven or eight Chase cards under my wife's name and another seven or eight on my name. I'm ready to tap out :-) It gets overwhelming!

I'm happy just earning five points per dollar with GC's. And I did see the post about MasterCard being on sale this week. I just have to get myself over to Staples.