Update 11/25/20: Best Buy has been added as a 5% category on the Discover It card for purchases from November 25 to December 31, 2020. h/t Doctor of Credit
Update 10/1/20: These bonus categories are now live.
~
There are several credit cards that offer 5% cashback in rotating categories each quarter. All of them can now be activated for Q3 2020 (July 1 to September 30), 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 / Freedom Flex
- Walmart
- PayPal
- 5% cashback on up to $1,500 spend in combined purchases of this quarter’s categories
- Eligible retailers & exclusions
- Activation link
The Chase Freedom and Chase Freedom Flex categories will be easy for many people to max out this quarter through organic spend seeing as the holidays are coming up.
Still, if you get towards the end of the year and still haven’t spent your $1,500 allowance (which might be the case for people with several Freedom cards), it’ll be easy to max out when buying gift cards. Walmart sells Visa and Mastercard gift cards, as well as third party gift cards. During the holidays, they often have a separate gift card rack near the checkout which contains gift card multipacks with bonus cards inside (e.g. $50 worth of Domino’s gift cards for $55), so that’s a way to get even more value. Unlike Discover’s offering this quarter, you can earn 5% at Walmart both online and in-store.
Otherwise, many sites and apps selling gift cards accept PayPal, including Fluz, PayPal Digital Gifts, eGifter and many more.
Discover It
- Amazon.com
- Walmart.com
- Target.com
- Best Buy (added for purchases November 25 to December 31, 2020)
- 5% cashback on up to $1,500 in purchases
- Activation link
Similar to the Chase Freedom / Freedom Flex categories, the Discover It card’s 5% categories will be easy for many to max out through organic spend due to Black Friday, Christmas, etc.
One key thing to note with Discover’s categories is that you’ll only earn 5% when shopping online. That’s generally going to be a moot point for Amazon purchases (unless you have one of their bricks and mortar stores near you), but it means in-store purchases at Walmart and Target won’t be eligible.
In terms of gift card purchases, Amazon is an easy option, especially seeing as they’ll likely run more discounted gift card deals in the next few months. Target usually offers a 10% discount on up to $300 of their gift cards during the holidays, so paying with a Discover It card will get you 20% of the way to maxing out your $1,500 allowance. Walmart sometimes offers gift card deals online; otherwise you could just order Walmart gift cards. Walmart sells Visa and Mastercard gift cards online too, but the activation fees mean that option isn’t particularly worthwhile.
Citi Dividend
- Best Buy
- Online Purchases at Warehouse Clubs
- 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
The Citi Dividend card works differently to the Freedom, Freedom Flex and Discover It cards because you get a 5% allowance on up to $6,000 of spend, but that doesn’t have to be spread throughout the year. You can therefore max out that spending in one category if you like which is what some of us did in Q1 seeing as grocery stores were an eligible category back then.
If you haven’t maxed out your $6,000 of bonused spend for the year, Q4’s categories make that easy to do. Buying Best Buy gift cards from Best Buy will be profitable for some, plus Best Buy often runs gift card deals that might be worthwhile.
Otherwise, you can buy gift cards online from Costco, BJ’s Wholesale Club and Sam’s Club. Similar to the Discover It categories, note that the wholesale club category is online-only.
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
The US Bank Cash+ categories don’t rotate each quarter, although you do get to change/maintain your selection of two categories. It’s a shame that grocery stores, drugstores, etc. aren’t eligible categories, but there are a few gift card options.
The electronics stores category presumably includes Best Buy. That means you can buy gift cards for Best Buy, Amazon and many other third party brands, plus Best Buy sometimes offers discounted gift card deals. Some department stores and clothing stores also have third party gift card racks.
ABOC Platinum Rewards
- Department stores
- Electronics stores
- Target (online & in-store)
- Walmart (online & in-store)
- Costco (online-only)
- Amazon.com
- Other major online retailers.
- Earn 5% cashback on your first $1,500 in combined purchases each quarter.
- Activation link
The Q4 2020 categories on the ABOC Platinum Rewards credit card will be easy to max out organically too considering Target, Walmart, Costco.com, Amazon and other stores (including Best Buy) are eligible.
Note that although Costco is online-only, earning 5% cashback at Target and Walmart is valid for both online and in-store purchases.
You’re spoiled for choice on the gift card front as any and all of these stores sell gift cards, so take your pick.
[…] this deal lasts through to October without selling out, the Citi Dividend card will be offering 5% cashback on online purchases from warehouse clubs starting on October […]
[…] This is a pretty good deal, so it’s a shame that there’s a limit of only two per household. Pay with a Chase Freedom card via PayPal to earn 5% cashback now that Q4 has started. […]
[…] haven’t maxed out your 5% earnings on $6,000 of spend so far this year, that card is earning 5% cashback this quarter for online purchases from wholesale […]