Liquidating American Express Gift Cards

by Hu$tler on May 18, 2010

in Street Smarts

It seems that many people manage to liquidate American Express gift cards over the last year or so. I still haven’t been able to grasp all the methods since people have been pretty tight lipped about it. Here’s a quick summary.

  1. Sign up Mr. Rebates($5 bonus) and search for “American express gift cards” inside your account.
  2. Use your Schawb CC or Fidelity CC(2% cash back) to purchase these gift cards.
  3. Use promo code EMDADMC1 to take out the purchase fee. Also, sign up for premium shipping free within your American Express CC account online for 3 months so you won’t have to pay shipping. Then cancel before the third month so you won’t have to pay.
  4. With 2% Credit Card cash back + 1% Mr. Rebates cash back = 3% cash back
  5. Liquidate American Express Credit Card  ?????? = Profit!
  6. Rinse and Repeat. More details on this process here.

The whole point of this is the churning of these AmEx gift cards into cash in order to rinse and repeat. You do it enough time and 3% of say $10,000 is $300 cash profit. Some people I think can churn $100K a year, hence $3000 in profit. That ain’t bad at all playa.

The question is, how the hell do you turn gift cards into cash???

Here are my possible solutions:

  1. People buying coins from the Mint Dept in order to get cash. The Mint Dept is making it tougher since they do not intend for you to deposit these coins back into banks. I’m not even sure banks are taking these coins anymore. So in theory, you can buy these coins with your AmEx gift card and deposit the coins back into your bank. I also think that you can buy Money Order at supermarket or Wal-mart with these coins, and then deposit the Money Order checks into your checking account. Hence, rinse and repeat.
  2. Selling on Ebay or Craigslist- you can make more profit by buying high cost items like laptops and selling on Ebay or Craigslist. You use your AmEx gift card to buy the items(make sure use all coupons, Mr. Rebates etc) and then post them on Ebay to sell. Hence, you are able to liquidate these AmEx gift cards by selling items on Ebay even for a small profit. I also think people use the 13% cash back Ebay method and tell their friends and family to buy the items they listed.
  3. Buy Gold Bullion on Ebay – again, buy gold bullion on Ebay using the 13% cash back method and pay it using AmEx gift card. It’s important to buy from a legit seller with 100% feedback to avoid scams. Once you get the gold bullion, sell it back to local coin or jewelry shop. You might even make a little profit on top of the cashback.
  4. Buying Items at Stores - certain retailers when you buy the items, and return it later with a gift receipt. They send you a check instead like LL Bean stores. Any other retailers??

Again, I’m not 100% sure on these methods so you are just gonna have to test them out. If you know of any other ways, comment below.

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{ 3 comments… read them below or add one }

Ben E. May 21, 2010 at 10:59 am

I have heard it is possible to get cash back using the gift cards. By a pack of gum at the grocery store and then get cash back. Probably a limit, but I’m not sure…

Reply

David May 19, 2010 at 2:30 pm

I think bing is no longer an option for ebay as they dropped the 8% cashback.

You could have used bing on ebay but up to the lifetime limit.

Reply

Hu$tler May 20, 2010 at 11:03 am

Ebay 8% is still available.

http://www.bing.com/shopping/pages/stores.aspx?FORM=PRFS07

Never heard of a lifetime limit. I’ve heard of $2500 per year limit per paypal account. so just create more Paypal account ;)

Reply

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