Maximizing Prepaid and Reload Cards For Miles and Points – The Basics
Update: You can no longer purchase Vanilla Reload cards using a credit card and Vanilla Reloads are no longer available in Office Depot.
I've asked TPG contributor Jason Steele to take closer look at the various prepaid and reloadable card options out there that have allowed him to personally accrue thousands of points cheaply in a series that I'll be running this week. I hope you're not only learn the specifics of these products, but can decide which of these strategies might work best for you. Posts in this series include: Maximizing Reload Cards for Points and Miles: Vanilla vs. Green Dot vs. PayPal vs. REloadit, Maximizing Prepaid and Reloadable Cards for Points and Miles: Reloadable Strengths and Weaknesses, and Maximizing Prepaid / Reloadable and Reload Cards For Points And Miles - Choosing Which Credit Card To Use.
In the post One Card To Rule Them All, Frequent Miler shared strategies on purchasing Vanilla Reloads at Office Depot for use with American Express prepaid cards. While Vanilla reload cards are no longer sold at Office Depot, they are still available elsewhere and this is still a viable (and potentially lucrative) way to earn points and miles from credit card use. Along these lines, TPG recently shared his experiences Are More Flavors Than Vanilla: Maximizing Miles and Points With Green Dot & Paypal.
Today I'll be discussing the basics of both reload and prepaid cards before delving into the specifics of each in subsequent posts.
What are these products? Here are the basics on reload cards and the prepaid/reloadable cards you can use them to fund.
Reload cards or packs: These are physical cards, sometimes called packs, that are sold at retailers on the gift card rack. Reload cards cannot be used to make purchases directly, but their value is transferred to other financial instruments such as reloadable debit cards or prepaid cards such as the American Express Bluebird. The customer chooses the amount of value to be loaded, typically $20-$500 although some have limits as high as $1,000. In addition, a fee of $3.95 or $4.95 is charged at the point of sale.
Reloadable debit or prepaid cards: These are prepaid debit cards that are part of a payment network such as MasterCard, Visa, or American Express. Cardholders can add funds from to them from their bank account, through direct deposit, or from a compatible reload card or pack like Vanilla or Green Dot. These products are intended to be a substitute for traditional banking services or debit/credit cards.
What can you do with a prepaid, reloadable debit card?
All of these cards allow you to make purchases from retailers just as you would with a debit card. But in addition, most of these cards can be used at ATMs to withdraw funds, and many can be used for electronic bill payment to any person or business and even to issue checks like you would from a bank account so that you can pay for things like mortgages, car payments and utilities that you might otherwise not be able to with a credit card. Thus you are opening up the possibility of earning points on expenditures you could not have before.
How do you load a prepaid card with your credit card?
First, you need to purchase the reload card from a retailer using your credit card. Next, you visit the reload network's web site. There, you enter in the card number from a compatible prepaid reloadable card along with the ID number from the back of the reload card. You must scratch off a concealing layer to reveal the ID number. The funds from the reload card are instantly available on the prepaid reloadable debit card.
How to earn points and miles with reload cards and prepaid reloadable debit cards
First, start by finding which stores near you sell one of the four major reload products, Green Dot, PayPal, Reloadit, and of course Vanilla. Next, figure out which ones will actually sell you these cards using a points-earning credit card. For instance, some merchants are now accepting only cash to pay for these reload cards, while others will take debit cards, and only some accept credit cards. In my experience, not only is each store different, but each individual cashier may follow different rules.
Next, obtain a compatible reloadable prepaid card that offers the best features and the fewest fees to make the purchases or issue the payments you will need, while avoiding products that close the accounts of users who cash them out too quickly.
Finally, determine what your cost per point is (factor in those point-of-sale charges) and whether or not this works for your needs. Also consider what your hassle factor is; how far you have to drive, how long you have to wait in line, and how much of a criminal you feel like when a cashier denies your use of a credit card (don't take it personally!).
Stay tuned
Those are the basic things you should be keeping in mind. This is just the first piece of a series of posts designed to explore how utilize the current products available. In my next post, I will compare and contrast the four different reload cards for sale including a summary of each product and its strengths and weaknesses, drawing from personal experience where possible. Next, I will offer an overview of the various prepaid cards on the market. Finally, I will conclude with an analysis of the costs and drawbacks of earning miles and points with these products.
In the meantime, order an Amex Bluebird card because it takes about a week to get – it's free and there's no credit inquiry, so you might as well.
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TPG featured card
Rewards
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.