Many www.fivebackgift.com cards offer incentives for spending in certain categories. Purchasing gift cards with these cards can help you maximize those rewards while staying within the rules set by your credit card issuer and the seller of the gift cards.

Getting the most out of your credit card rewards requires planning and strategic spending. Here's how to get started.
Getting Started

A gift card offers convenience and flexibility, but it's important to be aware of the fine print before you redeem one. Gift cards have expiration dates and many retailers charge a fee to use them. Generally, these fees are waived if you use the card within a certain time after purchase or if the balance is zero when the card expires. Some retailers also limit the number of times you can use a card before it's deactivated.

In the app, you can use your points to buy gift cards at restaurants and coffee shops such as Starbucks, Dunkin' Donuts, Chipotle, Olive Garden, and Texas Roadhouse or for grocery stores including Whole Foods Market, Walmart, and Target. You can even purchase merchandise and home improvement items at stores like Lowe's, The Container Store, and Yankee Candle. For some redemption options, you'll need to earn more points to qualify.

When you want to purchase a gift card with your rewards, head to the bottom navigation menu and tap "Rewards." You'll see the options for how much to spend and what brands you can get for those points. You'll need 9,500 points for a $10 gift card from a select group of retailers, for example.

If you have an expired gift card, you may be able to redeem it for cash. To do so, log into your Amazon account on a computer and visit the Accounts and Lists tab, then click Gift Cards. You'll need your card number and expiration date, as well as the name shown on the card (typically, A Gift for You).

Once you have a valid gift card, make sure it's activated before you start using it. You should receive a receipt or get a call from the card issuer to confirm that it has been activated. It's a good idea to keep the receipt in case you need to contact the card issuer for any reason, such as if the card is lost or stolen.

You can set up external gift cards through your payment processor in Toast Web, which is where you configure all your restaurant's sales and accounting data. To add an external gift card, navigate to Payments > Card types. In the External Gift Card type field, specify a general ledger account that holds all of your external gift cards (in demo data, you can enter 112140).
Redeeming Your Points

Redeeming gift cards with credit card points can be a great way to maximize your rewards program. But it's important to understand the restrictions, drawbacks and costs involved.

For example, some gift cards may have a higher intrinsic value than others because of factors like the retailer's customer rating or the number of different retail partners. In addition, the purchase or shipping fees associated with gift card purchases can quickly reduce the overall value of your rewards.

When redeeming credit card reward points for gift cards, you also need to consider the redemption rate. For example, if you earn rewards that can be redeemed for travel purchases, you'll often get the best redemption value when using those reward dollars for airfare, hotel stays or rental car rentals. Redeeming those same reward dollars for gift cards can reduce their value by up to 50%.

You should also be aware of any restrictions that your credit card issuer puts on how you use your rewards, including minimum spend requirements to unlock a bonus offer. For example, if you have a credit card that requires $4,000 in purchases in three months to unlock its sign-up bonus for a new Chromebook, consider timing your application around a period when you know you'll be spending more than usual. Then set a reminder on your phone or a sticky note to help ensure you make the necessary purchases to hit that threshold.

Many credit card rewards programs have partner programs that offer additional opportunities to earn and redeem. For example, some credit card cash back cards earn extra rewards when you shop at specific types of retailers, such as online clothing stores or home improvement stores. And some credit cards provide elevated rewards when you spend at grocery stores, which is a great place to pick up gift cards for friends and family.

However, it's important to remember that you should never spend beyond your means in order to earn rewards. If you end up carrying a balance, interest charges can wipe out any extra rewards you may have earned. To avoid a debt crisis, you should establish a budget and stick to it while using your credit cards to earn rewards.
Spending Your Points

Gift cards can be an easy way to buy goods or services. They are widely available in many different ways, online and in store, at retailers from Target and Walmart to the local corner gas station and on websites specializing in reselling gift cards. They can also be purchased with credit cards, which can earn cash back or points on the purchase. But there are a few important things to keep in mind before making that purchase.

First, check the card's fine print. Depending on the card, there may be restrictions or additional fees on how it is used. Some cards also have an expiration date. The fine print can also tell you what the card's security code is and give you a customer service number for any questions.

It's important to avoid using gift cards as an excuse to overspend. Two-thirds of consumers who redeem their gift cards end up spending more than the value on the card, according to Consumer Reports. This is probably due to the same psychological factor that causes people to spend more when they use a credit card rather than cash -- the money seems less real.

Another thing to consider is whether the card's purchase price includes a transaction fee, which can be charged to the cardholder. If the purchase price does not include a transaction fee, it is usually cheaper to buy a reloadable prepaid gift card and load the card with cash instead of buying the Visa card.

Lastly, it's important to know that credit card issuers frown on so-called manufactured spending, which is the practice of purchasing gift cards in order to meet a minimum spending requirement for a sign-up bonus. Some even explicitly forbid it in their terms and conditions. Violating these rules can lead to a credit card issuer clawing back rewards or, worse, shutting down your account and banning you from applying for its credit cards in the future.

Ultimately, buying gift cards with a credit card can be convenient and lucrative if done correctly. But there are some potential restrictions, drawbacks and costs that can be incurred, depending on the type of card you choose and your own spending habits.
Tracking Your Points

A lot of people use credit cards for travel, so they also have loyalty accounts with airlines and hotels. Couple that with a few co-branded credit card programs and you can end up with an impressive collection of loyalty accounts and point balances. Fortunately, there are a number of third-party tools that can make tracking all those rewards less time-consuming and labor-intensive.

One of the most popular options is AwardWallet, which allows you to track points and miles from more than 681 different loyalty programs. You can link all of your loyalty accounts and then use the tool to get a snapshot of all of your points and miles balances, as well as how much you’ve earned from various categories like dining, online shopping and airfare. The free version of the site offers a handful of key features, including account balance watch, which automatically tracks your rewards balances and lets you know when they’re close to expiring.

In addition to tracking your balances, you can also use the service to determine which credit card earns the most rewards at a particular merchant. The site also has a tool called Best Card for Spend that analyzes your spending history to help you determine which cards are the best ones to use for specific categories of purchases, such as groceries or gas.

The site also has a feature called Transfer Monitor, which monitors your airline and hotel loyalty accounts for the chance to earn more rewards by transferring unused credit card points into them. It’s a great way to keep tabs on your progress towards award flights or hotel stays, but it requires you to do some research in order to find the best transfers.

Despite these helpful tools, it’s still important to track your points manually using a spreadsheet or another system you trust. Otherwise, you may miss out on valuable opportunities to redeem your points for gift cards or merchandise, and you could risk losing your hard-earned rewards by letting them expire.

Some people even go to extreme lengths to maximize their points by “manufacturing” spending, which is the process of purchasing gift cards with a credit card in order to earn rewards on those purchase. While this can be a great strategy for earning more rewards, it’s not without its risks, such as being flagged by your card issuer for questionable activity or potentially violating the terms of your reward program agreement.