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Update 1/6/20: Just a quick reminder that these new categories started a few days ago.
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There are several credit cards that offer 5% cashback in rotating categories each quarter. Most of them can now be activated for Q1 2020 (January 1 to March 31), so here are their links and how to maximize them for gift card purchases in case you wouldn’t meet their respective spending limits through organic spend.
Cards, Categories, Limits & Activation Links
Chase Freedom
- Gas Stations
- Internet, Cable & Phone Services
- Select Streaming Services
- 5% cashback on up to $1,500 spend in combined purchases of this quarter’s categories
- Eligible retailers & exclusions
- Activation link
Gas stations are pretty much the only gift card play here, unless your streaming service sells gift cards directly. In most cases though, you’d be better off buying discounted gift cards for Spotify, Showtime, etc., or from a grocery store that offers fuel points of some kind.
With regards to gas stations, not all of them sell gift cards and those that do might not necessarily code as a gas station. It’s therefore best to do some kind of trial purchase first to make sure it codes correctly before going all-in with $1,500 of spend.
Some have found that 7-Eleven can be a good option as they sell a variety of gift cards including Visa and/or Mastercard gift cards, but again – make sure your local 7-Eleven codes as a gas station with Chase.
Discover It
- Grocery Stores
- CVS
- Walgreens
- 5% cashback on up to $1,500 in purchases
- Activation link
This quarter should be pretty easy to max out seeing as grocery stores, CVS and Walgreens all sell gift cards. It’s a shame that Rite Aid isn’t included as they tend to have the best gift card deals of the three main drugstore chains, but 3x $500 Visa gift cards will quickly and easily knock out the $1,500 spending limit.
Citi Dividend
- Fitness Clubs
- Supermarkets
- Total annual (calendar year) cash back is limited to $300 and includes additional cash back earned in connection with this offer (i.e. $6,000 total spend).
- Activation link
One of the best features of the Citi Dividend card is that you’re not restricted to $1,500 of spend per quarter, as that can sometimes be a pain to maximize. You still earn a maximum of $300 cashback per year, but you can earn that cashback within the same quarter if you like.
As a result, many will prefer to simply buy some kind of gift card(s) at grocery stores during Q1 2020 seeing as that’s an eligible category. With Amazon and drugstores coming up in Q2 though, there are options there if you don’t max it out from January to March.
US Bank Cash+
- Choose two of the following:
- Home Utilities
- Electronics Stores
- Sporting Goods Stores
- Ground Transportation
- TV, Internet & Streaming
- Department Stores
- Select Clothing Stores
- Gyms/Fitness Centers
- Furniture Stores
- Cell Phones
- Fast Food
- Movie Theaters
- 5% cashback on your first $2,000 in combined net purchases in your chosen 5% categories
- Activation link
I don’t have a Cash+ card, but it’s nice that it has a $2,000 limit each quarter rather than $1,500 on the Chase Freedom and Discover It cards. The downside is that it’s not as easy to maximize profitably seeing as grocery stores, gas stations, wholesale clubs, drugstores, etc. aren’t eligible 5% categories.
If you won’t max out the $2,000 spend each quarter through organic spend, your best option will presumably be to buy high value gift cards like Amazon or Best Buy at electronics stores, department stores or clothing stores (some Old Navy stores I’ve been to have stocked Amazon gift cards). Let me know in the comments below though if there’s a better play here that I’m not thinking of.