Do You Pay With Credit Card (with Cashback) or Buy Gift Card at Discount?

Lavoidfullprice on 14/01/2021 - 12:06
Last edited 14/01/2021 - 12:09 by 1 other user

For those who wants a bit of saving for themselves…

Assuming you get same % of benefit and giftcard is available for that particular store …

And you get to buy the exact value giftcard for your purchase (so no excess balance)..

Would you choose between:

• Use credit card at the store, and hope Cashrewards/Shopback/other tracks your cash back… but potentially get chargeback protection
• Use credit or debit card to buy GC at discount with no fees, and pay the store with GC (e.g woolies GC portal)
• Use credit or debit card to buy GC at discount with fees, and pay the store with GC (e.g. AGL portal)
• use cash to buy giftcard at discount and no fees (e g. Via Macquarie Marketplace place)
• Use either credit or debit card to buy GC and get cashback later via Cashrewards/Shopback (tracking almost "guaranteed"), no fees
• Other ways not mentioned

No polls as we can choose one or more ways, depending on store etc.

Keen to hear if CC chargeback protection is a decision for your purchase, and also if people don't mind delayed cashback v.s. instant discount.

Did a quick search and this doesn't look like it has asked before or recently.

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  Pecan on 14/01/2021 - 12:17

  +5

  Depends on what is being purchased, but generally the preference is for cc because if you need to return it, you will get the refund back on your card (as opposed to a refund back in gift cards, especially important with big ticket items). I also have price protection on the cc. The exception is discounted gc for groceries i.e. Woolies/Coles.

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  z10cvbnm on 14/01/2021 - 12:24

  +3

  I only buy GC if I am 100% sure I will keep the product, or else CC. If the savings % is the same, then CC.

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  theoracle30 on 14/01/2021 - 12:42

  +1

  Definitely CC for reward points, chargeback protection and not having the pay off that amount for another 20-50 days.

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  Trying2SaveABuck on 14/01/2021 - 12:59

  +3

  +90% of my transactions are HSBC tap and go to get 2% cashback

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  Seraphin7 on 14/01/2021 - 14:09

  Use credit or debit card to buy GC at discount with no fees, and pay the store with GC (e.g woolies GC portal)
  Use credit or debit card to buy GC at discount with fees, and pay the store with GC (e.g. AGL portal)

  Well, no one is going to choose the second if the first is available.

  Use credit or debit card to buy GC at discount with no fees, and pay the store with GC (e.g woolies GC portal)
  Use either credit or debit card to buy GC and get cashback later via Cashrewards/Shopback (tracking almost "guaranteed"), no fees

  Again, the first will always be preferred.

  In more general terms, the choice between paying on CC vs. GC all comes down to whether or not you believe you are going to have "problems" with your purchase.

  Gift cards/store credit at Colesworth is effectively cash to me … I know I'm going to spend it over the next few weeks so it doesn't worry me value (even a few hundred dollars) stored in this way. If I need to make a return and it comes back as some form of credit, that's fine, I'll just use that credit next time I'm in.

  I would not want to be holding GCs/credits with practically any other store. For small, consumable items I might consider discounted GCs, but for any large purchase, I don't want any risk that I'm going to get left with hundreds (thousands?) of dollars locked up in GCs/credit that I'm unlikely to have use for.

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  jsb on 14/01/2021 - 14:17

  I buy woolies gifts cards using Coles mastercard. This way I earn flybuys points on purchasing gift cards. Groceries from woolies are done through gift cards. And In Coles through flybuys points whenever I can. For all other purchases, if I need 2 year insurance, it's Coles mastercard. If no insurance required it's HSBC for 2% Cashback. Simple.

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  zooter on 17/02/2021 - 14:30

  Interesting topic and something I have been mulling about. For example, a Coles/Woolies/Dan Murphys gift card is always equivalent to cash since you are going to use it and not going to return stuff (well you can return still in Coles/Woolies for replacement if there is an issue)

  The GC values are always higher for example Suncorp gives me 3% off on say a Coles GC. Even earning 2 flybuys points on a platinum mastercard is lesser value than the GC. Dan Murphys/BWS is even better at 5% off and using cashback and online purchase (or raiz rewards) you still probably get additional cashback. All small amounts but add up

  I also have started using Amazon GC because mostly I buy consumables which I'll less likely return or even in the rare case of a return, I'm always going to be buying stuff from Aamzon one way or another

  The only thing that I didn't consider was the extended warranty and insurance on my coles card. Now, I suppose it makes sense on larger items? For example, I'm considering a SSD drive for $100 - would paying by credit card help? I'm not sure if I'd rather have the cashback now or extended protection. It's highly unlikely if the drive fails after 3 years for me to use my CC to process a warranty I suppose, but food for thought!

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  jv on 17/02/2021 - 14:32

  Do You Pay With Credit Card (with Cashback) or Buy Gift Card at Discount?

  I pay cash…