Maximize Credit Card Rewards with Staples Visa Gift Card Promotions

Every financial endeavor, whether it’s a serious business investment or a casual hobby, carries the potential for either a positive or negative return on your investment, especially when considering the time you dedicate. Today, we delve into a strategy that many savvy individuals use to boost their credit card rewards: leveraging Staples Visa Gift Card Promotions.

This morning’s trip to Staples was a calculated move. Driving to a neighboring town’s Staples, about 20 minutes away, might seem like a detour, but it’s often where you can capitalize on deals that aren’t available everywhere. The goal? To purchase multiple Visa gift cards – in this case, ten $200 cards – during a promotional period where the purchase fees are waived. While the Staples closer to home restricts purchases to one card at a time, this location often allows larger purchases, significantly increasing potential rewards. Of course, there’s always a slight risk: the promotion might not be active, the store might have reverted to single-card limits, or they could simply be out of stock. But the potential reward often outweighs these risks.

Staples Visa  Fee Promotion

Securing $2000 worth of Visa gift cards without any fees translates directly into a positive return on time invested. Acquiring $2000 in Staples Visa gift cards at no extra cost can yield substantial credit card rewards points. For example, using a card that earns 5X points per dollar, like the Chase Ink Business Cash card, this purchase could generate 10,000 Ultimate Rewards points. Valuing these points conservatively at 1.5 cents each, that’s a minimum of $150 in value.

Considering the time investment – twenty minutes to drive there, twenty minutes back, and approximately twenty minutes to process the gift cards into money orders – the potential profit from this deal calculates to around $150 per hour. This hourly rate perspective becomes a crucial metric when evaluating the attractiveness of various deals and financial opportunities.

Calculating Your Minimum Hourly Rate for Deals

When assessing financial opportunities, it’s essential to consider your minimum acceptable hourly rate. Applying for a credit card with a substantial sign-up bonus, like a 60,000-mile airline card, can be incredibly lucrative in terms of hourly return. Spending just 15 minutes on the application and then meeting the minimum spending requirement through regular spending habits can result in an exceptional hourly rate. Similarly, opening a bank account with a bonus offer can also be worthwhile. For instance, a past bank account bonus with minimal requirements—like depositing $1500 and making a few bill payments to earn a $300 bonus—could translate to a $300 hourly rate, assuming about one hour of total effort. While this might be half the hourly rate of some top-tier credit card sign-up bonuses, earning $300 per hour is still a highly attractive proposition for many.

Personal preferences and limitations also play a role. Some may avoid bank bonuses with direct deposit or debit card transaction requirements. It’s about finding the balance between effort, reward, and personal comfort.

Understanding Manufactured Spending with Gift Cards

Strategies like manufactured spending, which involve purchasing gift cards to generate credit card rewards, require a more detailed calculation of return. This involves factoring in the time spent buying gift cards, any associated gift card purchase costs (though ideally waived through promotions like Staples Visa gift card deals), and the costs of converting these gift cards into cash equivalents, such as money orders. Previously, using an Amex Gold card combined with a Schwab Platinum card to earn 5% cash back, minus fees and money order costs, while also incorporating cashback from apps like DOSH for purchases at certain stores, provided a solid return.

The number of gift cards purchased per trip significantly impacts the hourly rate of return. Purchasing multiple gift cards, especially by leveraging self-checkout and partner cards, can dramatically increase efficiency and overall return compared to buying just one or two cards at a time.

Currently, with changes in cashback percentages and strategies, the return might be closer to $42 per hour after expenses using a 2.625% cashback card. While less than a previous $72 per hour, $42 per hour still remains a worthwhile rate for many, representing a personal lower threshold for engaging in such activities.

Ultimately, each deal is unique, and individual participation levels and preferences vary. What constitutes a good hourly rate or acceptable effort is a personal decision. Don’t let others dictate what’s right for you. Instead, focus on evaluating how to optimize each deal to maximize your personal return and hourly rate.

The Outcome of the Staples Visa Gift Card Run

So, how did the Staples trip to secure Visa gift cards unfold? The initial objective was successful: $2000 worth of $200 Visa gift cards were purchased, taking advantage of the no-fee promotion. However, converting these gift cards into money orders presented an unexpected hurdle. The nearby grocery store, usually a reliable and cost-effective option with a $0.46 money order fee, encountered a problem. A new clerk insisted on seeing the gift card used for each money order and restricted transactions to one gift card per money order.

This unexpected obstacle significantly increased the time factor. Instead of processing money orders in one location, it became necessary to visit multiple outlets, increasing both time and costs. The alternative money order locations charged $0.99 per money order, doubling the expense.

This change meant money order costs were no longer offset by earnings from cashback apps. Instead of breaking even or profiting slightly on money order fees, there was now a net expense of $5. This adjustment in the final step of the process reduced the net profit from an anticipated $150 in one hour to $145, potentially spread over two hours due to the additional stops. While the hourly rate decreased to $72.50, it remained within an acceptable range.

Evaluating every deal based on its hourly rate of return is a practical approach to personal finance. Have fun calculating and optimizing your hourly rate across all your financial endeavors.