Wednesday, October 29, 2014

Discover Credit Card 5% Possibilities

Update 11/23/2014 - Gift cards will likely not qualify for 5% cashback.

From now until the end of the year, Discover it is offering 5% cashback for Online Shopping and Department Stores, on up to $1,500 of purchases which is $75 cashback.  You must activate the 5% cashback before your purchases to qualify for the 5%.

In addition to your regular spending online, here are some possibilities of how to maximize your 5%. As usual, we are also on the look out for ways to Manufacture Spending.  Let's try to get $75, or at least some of it, without actually spending money.

Here are a couple of suggestions:

1) In Store Google Wallet NFC Payments
  • Google Wallet is one of many companies that allow you to pay for purchases with your smartphone.  Doctor of Credit reports that in store purchases using Google Wallet might be coded as online purchases. 
  • Many pharmacies, including CVS, allow for NFC payments and sell Visa Gift cards and Paypal Reload cards.

2) American Express Gift Cards - Update 11/6/2014 - I've seen reports of Discover considering Amex Gift Cards as Cash Advances, I would stay away.
  • I haven't actually tried this, but it makes sense that it will work.  They don't sell $1,500 gift cards so you can buy 1 $1,000 gift card and another $500 gift card.  Purchase and shipping fees come out to $16.85 for the $1,500 of gift cards.

  • Start you purchase from Top Cashback and you will get 1.5% cashback as well for $18.75 cashback, which more than covers your fees.
    • You can either use this as a possibility to get 5.13% cashback wherever AMEX is accepted or you can cash out via Google Wallet for a $43.50 fee for a net $33.35 gain.

3) Online Simon Mall Visa Gift Cards
  • I haven't tried this either, but once again there is no reason it shouldn't work.  You can buy $500 Visa gift cards for a $2.95 fee.  $1,500 of gift cards will cost $1,519.12 total with shipping
  • Advantage of Visa Gift Cards is that they can be used as Debit Cards in some places to buy Money Orders for cheap, load onto Serve/Bluebird at Walmart or pay bills with Evolve.
  • You are basically getting 4% cashback with slightly less work than with AMEX gift cards.