Gift Cards for everyday purchases to double points?

[tocal]

I've been reading through the EDR threads, and it seems that people manage to buy gift cards (and get points), and then spend that giftcard and get points for that purchase as well. Is that possible, or am I misunderstanding, because it seems like a huge loophole. If you can explain why people are very into wish cards, I'd love to understand!

 

[cove]

That is the whole idea of Woolworths Gift Cards. You buy them at 95 cents in the dollar,pay on your Woolworths everyday rewards credit card. At the check out you blip the back of the WOW EDRCC to get your bonuses and pay off your gift card.
National seniors is a place you can join for 3 years at $60 and because it is like a club age is no barrier. Weekdays you can call
1300 76 50 50 to join.

 

[Mal]

You don't get EDR points for purchasing the gift cards - only redeeming them.
What is generally done is:
- You can purchase Woolies and Coles gift cards through some organisations for several % off. (Entertainment book is one, places like UnionShopper and some of the industry associations are similar). If you use a credit card for that purchase, you get the credit card points, plus a gift card worth a bit more than you paid. When you use them, you use your EDR card and get the EDR points at that point.

In the past there have been some "loopholes" where you could perhaps double dip - but these are pretty rare and are usually closed quickly.

 

[tocal]

Thank you - that makes sense now! Considering we do spend a large amount of money at the supermarket, and once this silly week of "rewards" is over with nothing really specific or useful to me, I'll have to get into that! Thanks guys

DISREGARD THESE CALCULATIONS:
Having looked into the maths, though, as someone who has a Woolies QFF CC:

If I buy 1 card at $95, I get 95 points via the CC. I then buy $100 worth of groceries, and get my 100 points on my EDR card. $95 = 195 points

If I buy $100 worth of groceries on my CC, I get the 100 points from the CC but also the 2-for-1 Woolies points for a spend over $30, which ends up at $100 = 300 points.

Even if I don't get the 2-for-1 points, it's $100 for 200 points, which is an extra 0.5 point per dollar - which is good, but even with a $1,000 card (which I know you can't buy, but assuming you could do it in one transaction instead of 10) would end up reaping only an extra 500 points for the effort.

Am I correct? Or are there circumstances in which it is actually useful?

 

[RWJ777]

I've looked at this before but the value doesn't strike me as particularly great -- quite the contrary.

While you get a small % discount for buying upfront, the points you accrue would seem to be the same if you use a Woolies CC except that you get them up-front rather than the time of purchase (had you paid at the till). So I don't see the benefit other than the tiny discount and that the points accrue upfront.

Against that, there's the risk that if you buy a lot upfront, you lose access to your cash (and whatever interest you would have made on it / or benefitted from paying down debt). So, for eg, if the interest on any consumer debt you hold is anything more than the 5pc discount associated with upfront payment of the giftcards, I think you'd actually be behind.

Am I missing something huge here though?

 

[tocal]

I've looked at this before but the value doesn't strike me as particularly great -- quite the contrary. While you get a small % discount for buying upfront, the points you accrue would seem to be the same if you use a Woolies CC except that you get them up-front rather than the time of purchase (had you paid at the till). So I don't see the benefit other than the tiny discount and that the points accrue upfront.Against that, there's the risk that if you buy a lot upfront, you lose access to your cash (and whatever interest you would have made on it / or benefitted from paying down debt). So, for eg, if the interest on any consumer debt you hold is anything more than the 5pc discount associated with upfront payment of the giftcards, I think you'd actually be behind.Am I missing something huge here though?

I think, in bulk, if you put in the effort and don't have a WW CC, then you'll still be earning extra points - 500 points per $1000 value on the cards. However, it does seem like a small return to me, and as I mentioned, given I get 2 points per dollar over $30 spent at WW, plus the normal EDR points, it's not as beneficial.

 

[markis10]

I would not call a 5% discount small when it's effect compounds.

 

[tocal]

I would not call a 5% discount small when it's effect compounds.

This sounds stupid (because it is), but the actual financial discount didn't occur to me - you're saving $50 per $1,000. Personally, I think I'd still choose the extra 100 points over the $5 saving, even when compounded, but if it works for people (and clearly it does!) then they get to profit from it!

 

[cove]

That compounding could be as high as 5% plus 4% plus 4% for me as I do Qantas JASA redemptions between Perth and Sydney or Perth and Melbourne or a trip to LAX in First from time to time.
My spending money comes from the $98s I save each time I get $2,000 of Gift Cards. Now that saving is tax free versus say getting 5% on a savings account somewhere which would earn you $100 in a year.
You can of course do this for your extended family provided you can get them to give you back money for the cards you hand out.

 

[tocal]

That compounding could be as high as 5% plus 4% plus 4% for me as I do Qantas JASA redemptions between Perth and Sydney or Perth and Melbourne or a trip to LAX in First from time to time.

I know it's not applicable to me, but can you explain that? I presume you can use the wish cards for flights, but how do you save the extra 4% + 4%?

 

[cove]

I redeem the double lots of points earned for flights that have the highest retail value. So we run up points hard and fast then look for a delightful Qantas flight and book front of plane seats with those doubled up points.

 

[JohnK]

If I buy $100 worth of groceries on my CC, I get the 100 points from the CC but also the 2-for-1 Woolies points for a spend over $30, which ends up at $100 = 300 points.

Everyday Rewards credit card offers 2 QFF points for each $1 spent and comparing that to purchasing gift cards at 5% off.
- Purchase $100 in wish cards for $95 and receive 95 credit card points (assume converted to QFF points at 1:1) and then spend $100 Wish card and receive 70 QFF points for a total of 165 points but also a cash saving of $5
- Or Spend $100 at Woolworths and receive 100 QFF points + 140 credit card points at 2:1 for total of 240 points

So by buying a 5% discounted Wish card you have earned 75 points less but saved $5. If you value those points at 4c/point then you have actually saved $2 by buying discounted wish card.

- Purchase $200 in wish cards for $190 and receive 190 credit card points (assume converted to QFF points at 1:1) and then spend $200 Wish card and receive 170 QFF points for a total of 360 points but also a cash saving of $10
- Or Spend $200 at Woolworths and receive 200 QFF points + 340 credit points at 2:1 for total of 540 points

So by buying a 5% discounted Wish card you have earned 180 points less but saved $10. If you value those points at 4c/point then you have actually saved $2.80 by buying discounted wish card.

- Purchase $500 in wish cards for $475 and receive 475 credit card points (assume converted to QFF points at 1:1) and then spend $500 Wish card and receive 470 QFF points for a total of 945 points but also a cash saving of $25
- Or Spend $500 at Woolworths and receive 500 QFF points + 940 credit card points at 2:1 for total of 1,440 points

So by buying a 5% discounted Wish card you have earned 495 points less but saved $25. If you value those points at 4c/point then you have actually saved $5.20 by buying discounted wish card.

I think that calculation is right. Numbers vary up and down depending on how much you value points or how much per shopping trip. Personally I value points at 2.5c so if I can get discount gift card it would be best saving for me.

 

[medhead]

Everyday Rewards credit card offers 2 QFF points for each $1 spent and comparing that to purchasing gift cards at 5% off.
- Purchase $100 in wish cards for $95 and receive 95 credit card points (assume converted to QFF points at 1:1) and then spend $100 Wish card and receive 70 QFF points for a total of 165 points but also a cash saving of $5
- Or Spend $100 at Woolworths and receive 100 QFF points + 140 credit card points at 2:1 for total of 240 points

I'm sorry but this calculation doesn't add up for me. $100 spend at woolworths on a EDR card earns 1 point per $, so 100 points plus another 70 points if you scan your EDR barcode. A total of 170.


Sent from the Throne

 

[tocal]

To clarify, on the two-for-one Qantas/Woolies deal, I know it's only if you spend over $30, but I assumed the points were then for the entire amount?

 

[medhead]

To clarify, on the two-for-one Qantas/Woolies deal, I know it's only if you spend over $30, but I assumed the points were then for the entire amount?

What 2 for 1 deal. You get full points for all spend with the card and you get the usual 1 point per $ on spend over $30 at Woolworths (and etc.) if you scan your EDR card at the same time.


Sent from the Throne

 

[JohnK]

I'm sorry but this calculation doesn't add up for me. $100 spend at woolworths on a EDR card earns 1 point per $, so 100 points plus another 70 points if you scan your EDR barcode. A total of 170.

It adds up if you receive 2 points per $1 spend on Everyday Reward credit card as mentioned earlier in the thread. I don't have an Everyday Rewards credit card.

Plus don't some credit cards give you 2 points per $1 or 3 points per $1 on supermarket spend?

 

[medhead]

It adds up if you receive 2 points per $1 spend on Everyday Reward credit card as mentioned earlier in the thread. I don't have an Everyday Rewards credit card.

Plus don't some credit cards give you 2 points per $1 or 3 points per $1 on supermarket spend?

Except I'm not aware of EDR credit cards getting 2 points per $ on Woolworths spend. Certainly it is not the usual earn for these cards. I think there is something wrong with the figures that have been presented.

Yes, some Amex MR cards earn 3 per $.


Sent from the Throne

 

[JohnK]

Except I'm not aware of EDR credit cards getting 2 points per $ on Woolworths spend. Certainly it is not the usual earn for these cards. I think there is something wrong with the figures that have been presented.

What is wrong with the figures presented? Assume that an Everyday Rewards credit card earns 2 points per $1 spend as stated in the post I quoted.

It was just used for tocal to make comparison.

 

[medhead]

What is wrong with the figures presented? Assume that an Everyday Rewards credit card earns 2 points per $1 spend as stated in the post I quoted.

It was just used for tocal to make comparison.

The card does not earn 2 points per $ for Woolworths spend. It only earns 1 point per $. The post you quoted appears to be wrong. The maximum that can be early for $100 spend is 170 points. 100 for the card spend and 70 ($100-$30) for scanning the EDR card.


Sent from the Throne

 

[JohnK]

The card does not earn 2 points per $ for Woolworths spend. It only earns 1 point per $. The post you quoted appears to be wrong. The maximum that can be early for $100 spend is 170 points. 100 for the card spend and 70 ($100-$30) for scanning the EDR card.

So my post will be relevant if the Everyday Rewards credit card ever earns 2 points per $1 spent. For now just use it as a hypothetical.