Where Spending Leads to Earnings

 

Five Back Gift Card offers 5% back on purchases at select merchants. However, the purchase fees — which vary by dollar amount — eat into the overall value of the cards.

As with any prepaid card, consider the pros and cons before buying this one. Read more: Get buying tips for Prepaid five back gift card balance Cards delivered to your inbox.
1. Earn 5% Back on Your Purchases

Gift cards make gift-giving easy, allowing the giver to pick out a specific amount and remove the worry about whether the recipient already has it. But not all gift cards are created equal and some carry extra fees that can add up quickly.

For example, most retailers charge a purchase fee when you buy their gift card, and those fees tend to increase with the card’s face value. In addition, some credit cards also have their own gift card rules that vary by issuer and card type. For instance, some cards only earn rewards on the card-network gift card purchases and not on the retailer purchases made with the card.

Some cards also charge a dormancy or inactivity fee, despite the fact that they’ve been used. This is a way for the card issuer to get back the money that would otherwise expire, and some states have laws in place to protect consumers from this type of fee.

The Five Back Gift Card gives you 5% back on your purchases of participating merchants’ gift cards, including in-store and online, making it a great option for buying gift cards. However, you should check the terms and conditions of the card to make sure that a merchant you want to buy a gift card from is eligible for the bonus offer.

In addition to checking the terms and conditions, you should also check your gift card balance. Make sure it has not been tampered with and that the card number or PIN has not been scratched off, which can make it easier for thieves to steal the full value of the card. You can do this by either checking your receipt, calling the merchant or going to the card issuer’s website.
2. Earn 5% Back on Gas

If you want to get the most cash back on gas, look no further than a gas credit card. The PenFed Platinum Rewards Visa Signature is one of our top picks, as it offers 5 points per dollar spent at the pump. You can also earn 3 points for every dollar you spend at supermarkets, supercenters (including Target and Walmart locations), restaurants and home improvement stores, plus TV, radio and cable streaming services.

Alternatively, you could opt for the Citi Custom Cash Rewards Card, which allows you to pad your wallet with gift cards by designating a percentage of your spending to earn rewards each month, up to a total of $500. You can choose from a growing list of merchants that include drugstores, online retailers and home improvement stores, as well as grocery and wholesale clubs. You can even earn 5% back on purchases made using Digital Wallets like Apple Pay and Samsung Pay, and in-store with Google Pay.

With both of these cards, you can redeem your earned rewards for gift cards to retailers including Airbnb, Sephora and Stitch Fix. You can also get rewarded by referring friends to the program. Most of these programs give you 2,000 points when they make their first receipt scan, with many rewarding your referrals with 10,000 points or more for submitting their receipts.

If you have a 5% cash back card, it’s worth looking at your shopping habits to see how much you can earn from gas and other categories by maximizing your purchases in those quarters when those rewards are offered. You can also pair a 5% cash-back card with a flat-rate cash back card to boost your overall earnings, especially when it comes to grocery and gas spending.
3. Earn 5% Back on Dining

Whether you want to say thanks, show your love or just let someone know you’re thinking about them, an eGift Card is a great way to do it. They’re a convenient way to send money and they’re delivered instantly to the recipient’s email inbox — no app needed.

If you don’t mind paying a fee to get cash back on your gift cards, the Five Back Visa card may be a good option. You can use it anywhere Visa debit is accepted and earn up to 5% back when you shop at select retailers and restaurants including AMC Theaters, O’Charley’s, Cracker Barrel, Nike and more. Plus, you can earn fuel points when you spend at participating gas stations.

Another way to get cash back on your gift cards is by using shopping apps or services that pay you to scan receipts and purchase prepaid cards for their partners. While these companies do charge a small commission for their service, they can help you save by letting you avoid the extra fees you’d pay to buy the card outright.

Be sure to compare the total purchase costs of different Visa prepaid cards when deciding which one to buy. Some have shipping or customization charges that can eat into the money you’ll have left on the card. Also, check to see if the card you’re considering has bonus categories. If so, you’ll want to activate those before spending your money. Otherwise, your purchases will only earn 1% cash back. This can be a big difference when you’re buying items that you know you’ll be purchasing during those periods. That’s especially true if you’re planning to do all of your holiday shopping online.
4. Earn 5% Back on Grocery Purchases

A gift card can be a convenient way to give someone a specific amount of money or store credit. But they can also be a great way to earn rewards, especially when you choose the right cards.

We’ve found that the best cards for earning 5% back on grocery and drugstore purchases include the Citi Custom Card, Chase Freedom Flex, Amex Gold and Discover it Cashback. Each of these cards earns 5% back on your top spending category each billing cycle, with no cap and a rotating quarterly bonus category.

Buying gift cards with your credit card is a convenient and effective way to maximize the value of your rewards. But it’s important to keep in mind that there may be restrictions or costs associated with doing so. These can vary by card issuer, merchant and your own spending habits.

For example, some credit cards only let you earn rewards on gift card purchases at certain locations. You might be able to buy them at Nordstroms with the Amex Gold, for example, but you’ll only earn 1% or 1 point per dollar on those purchases with other cards.

Another thing to consider is whether the retailer you’re buying from has a reputation for providing an excellent customer experience. This is important because the intrinsic value of a gift card depends on how well it’s liked. You can learn a lot about the popularity of a retailer by visiting popular review sites.
5. Earn 5% Back on Entertainment

While gift cards are an excellent choice as a present, they can also be a good way to earn rewards. Since they operate like cash at many retailers, using them is usually the same as paying with your credit card. However, some credit cards allow you to earn even more rewards by purchasing gift cards with them and then using them for retail purchases.

The Discover it Card, for example, offers 5% back in rotating bonus categories that include restaurants and wholesale clubs. Since most of these stores sell their own brand of gift cards, this is an easy way to make sure you’re getting the maximum possible value from your rewards. Similarly, the Ink Business Cash card earns 5% back at office supply stores, which often carry gift cards for retailers that don’t otherwise offer rewards.

Lastly, the no-fee Citi Custom Cash card gives you 5% back in a specific spending category each quarter from a list of eligible options that includes grocery stores, gas stations, restaurants and entertainment. If you plan to spend a lot in these categories each year, this card could be worth considering.

Remember, though, that while gift cards can help you earn rewards, overspending is still a bad idea. It’s best to use them only on things you need or want, and pay off your statement balance each month in order to minimize interest charges that could quickly eat away any rewards you might have earned. For that reason, you’ll also need to be wary of purchasing gift cards on online auction sites or in other third-party places, where there’s no guarantee the seller is legitimate. These sites may sell stolen or counterfeit cards.