Two current and upcoming bonused manufactured spend opportunities

Today I want to flag a couple manufactured spend opportunities to make sure readers are aware of them.

$15 off $300 in Office Depot/OfficeMax MasterCard gift cards

Through August 24, 2019, automatically receive $15 off purchases of $300 or more in MasterCard gift cards at OfficeDepot and OfficeMax store locations. $200 fixed-value MasterCard gift cards have an activation fee of $6.95, so the purchase of two $200 cards comes to a total of $398.90. I’ve seen reports that the credit is only applied once per transaction, so your best bet is to either visit multiple locations or hope that your cashier will allow you to ring cards up in multiple, separate transactions.

Using a legacy Chase Ink Plus or Bold card, or a Chase Ink Cash, you’ll earn 5 Ultimate Rewards points per dollar, for a total of 1,995 negative-cost points (depending on the liquidation methods you have available).

$15 in free groceries after $150 or more in Visa or MasterCard gift card purchases at Giant/Stop & Shop/Martin’s, plus cheap or free gas

Via Doctor of Credit, the East Coast Giant/Stop & Shop/Martin’s grocery store chain is offering a version of their periodic promotion for free groceries when you purchase prepaid debit cards. These promotions have taken several forms over the years, but this is one of the most generous versions I’ve seen:

  • it applies to purchases of both Visa and MasterCard gift cards. Some people find it cheaper or more convenient to liquidate one type of card rather than the other, and this promotion gives them a choice.

  • it offers $15 in free groceries, while previous versions of the promotion sometimes offered just $10.

  • it offers a printed coupon to be used on a future purchase, which makes the coupon transferable and means you can ring up your gift card purchase at customer service and not hold up the ordinary checkout lanes.

  • and finally, if you choose to buy MasterCard gift cards, you’ll also earn 2 gas points per dollar. For folks that spend a lot on gas, that may be a very valuable incentive to buy MasterCards over Visas.

The offer is supposed to run between August 23 and August 29, 2019, and the coupons can be redeemed for groceries through September 5, 2019.

Conclusion: Visa or MasterCard?

The manufactured spend landscape has become so fractured that there’s no one strategy that is going to work for everyone. For a long time, conventional wisdom had it that Visa prepaid debit cards were easier to liquidate due to Walmart’s almost-universal geographic footprint. But with their obnoxious new ID requirements and restrictions, that wisdom has become less conventional.

As you seek out as many cost-effective liquidation methods as possible, you’ll just need to stay even more aware of which methods might make preferring one card network or issuer or another more or less profitable and convenient given your specific circumstances.

No, you don't need to buy fixed-value gift cards for the Giant/Stop & Shop/Martin's grocery promotion

Doctor of Credit is one of my favorite resources for news about promotions (although they post so much stuff the website is almost unusable; I prefer their Twitter and RSS feeds). However, one consequence of the sheer breadth of their coverage is they aren’t specialists, which sometimes gets them tripped up when similar promotions come along from different merchants. I think that’s what happened this week when they wrote about the current Visa gift card promotion at Giant, Stop & Shop, and Martin’s store locations.

As a button on the post, William Charles wrote, “Will probably only work on a $100 fixed value card.”

The promotion: $10 off your next $10 grocery purchase when you buy $100 in Visa gift cards

This promotion may seem similar to last month’s promotion for $15 off $15 in groceries, but is actually superior in three key ways:

  • the promotion is automatically triggered when you use your Giant card during a Visa gift card purchase. There’s no need to create multiple accounts, add digital coupons to each account, and keep track of multiple alternate ID’s.

  • the promotion produces a coupon to use on a future shopping trip, so you don’t have to ring up your gift card and groceries together. That means you don’t have to check out with a cashier, who may be unfamiliar with the procedure for selling gift cards, and in any case requires summoning a supervisor and holding up shoppers behind you.

  • the coupon can be used at self-checkout stations, which gives you breathing room to troubleshoot any problems you have using the coupon, like unadvertised discounts that might bring your grocery total below $10.

Of course, the drawback is that the discount is just $10 off $10 in groceries, rather than $15 off $15. Whether the increased simplicity outweighs the lower value is an exercise left to the reader.

The confusion: some promotions require fixed-value Visa gift cards, intentionally or not

There are two ways to get confused about what gift cards are eligible for which promotions. First, promotions may explicitly target fixed-value cards. For example, Safeway gift card promotions frequently specify that the promotion applies exclusively to $100 MasterCard gift cards. Second, promotions may not explicitly require fixed-value gift cards, but a store’s own policies mean they’re the only cards eligible. For example, during a lucrative promotion a few years back, a Office Depot stores sold both fixed-value and variable Visa gift cards, but only fixed-value cards could be purchased with credit cards. That wasn’t a restriction in the promotion (and indeed, some folks realized the promotion was worth doing even if you had to pay in cash for variable loads), but it was a restriction that applied to the promotion.

In the case of the current Giant promotion, the coupon is triggered by the purchase of $100 in Visa gift cards, not the purchase of $100 Visa gift cards; variable Visa gift cards work fine, and most (if not all) store locations will sell variable cards by credit card.

Conclusion

I don’t mean to give the DoC team a hard time for the mistake; like I said, I think they’re one of the most valuable resources in the community. I just want to make sure folks who were surprised or confused after reading their post know that this promotion is indeed available to those who find it more lucrative and convenient to purchase and liquidate variable value Visa gift cards rather than fixed-value ones at grocery stores.

The return of free+ groceries at Giant/Stop & Shop/Martin's

One of the most lucrative, most annoying grocery store promotions returns this week, just in time for folks who have been waiting to max out their Freedom second quarter bonus spend: receive $15 off $15 or more in groceries when you buy $250 or more in Visa gift cards at Giant, Stop & Shop, or Martin’s grocery stores.

Here’s how it works.

Load the digital coupon to each of your accounts right away

This promotion has taken a few different forms over the years, but the current version is a single-use digital coupon that has to be activated online before you can use it. The digital coupon expires July 6, 2019, but this is slightly misleading, and has tripped me up in the past.

Once you’ve loaded the coupon, you have until July 6 to use it, but the coupon will not be available to load that long. In past versions it’s only been available during the period covered by the current week’s circular, so I suspect it will disappear on June 27 if you haven’t loaded it by then.

Here’s the digital coupon you’re looking for:

You can have an unlimited number of loyalty accounts, but they do need to be created with unique e-mail addresses (for login and coupon loading) and phone numbers (for in-store lookup). There’s no verification of either, so you can be creative, but I recommend using a password manager like 1Password or LastPass so you can easily reuse your duplicate accounts during future promotions.

Select $15 in groceries before taxes and after coupons are applied

The terms of the offer state that it “will be applied to your grocery order before taxes and after all other coupons and savings are applied.” I’m not sure if this was made deliberately confusing in order to encourage people to buy more “just in case” their order doesn’t reach $15, but in practice it has not mattered for me. I simply keep a running mental total of the display prices of my groceries until I get to a little over $15, and if I end up a little short due to a coupon or unadvertised discount I just grab a box of Altoids off the candy rack to get me over the top.

I’ve had trouble replicating it but it seems that certain coupons or discounts can even reduce your grocery total below $15 while still triggering the credit, meaning you may be able to buy groceries at a negative cost (or get a discount on your gift card activation fee).

Add a $500 Visa gift card

Note that unlike in earlier versions of this promotion where you received a paper coupon you could use for later grocery purchases, the Visa gift card has to be purchased in the same transaction as your groceries. That means having to deal with ordinary cashiers who may not be familiar with the procedure, which requires a supervisor’s “key turn.” Hopefully over the course of the next two weeks you’ll give them enough practice to get comfortable.

So far so good.

But what do you buy?

I do a lot of grocery store manufactured spend already, and I love free groceries, so naturally I love it when this promotion comes around. The flip side of that is it turns grocery shopping into a part-time job two weeks at a time. I’m well aware that most travel hackers enjoy considerably more residential storage space than I do, but the fact is still that I live in a one-bedroom apartment and there’s only so much room to stockpile groceries. Even things that I use a comparatively large amount of I don’t buy months of in advance because there’s nowhere to put it.

That being said, here are my friendly suggestions for what to think about loading up on during the promotion. I typically devote a day to a single item or category so I don’t have to think about mixing and matching each day.

  • Paper goods. Paper towels and toilet paper. You know you’ll use them eventually, and they never go bad, so load up and stuff them in the back of the closet if you have to. Just don’t forget they’re there!

  • Toothpaste. This is a favorite of mine since it also lasts forever (I hope?), is relatively expensive, and takes up relatively little room. This also goes for things like electric toothbrush heads which take up almost no space and are almost as expensive as printer cartridges.

  • Feminine hygiene products. Expensive and non-perishable: not everybody needs them, but if you do, you know you’ll use them eventually so this is a good chance to stock up.

  • Dried, canned, and non-perishable groceries. The problem with actual groceries is they’re not very expensive so $15 represents 7 or 8 boxes of pasta, 4 or 5 jars of pasta sauce, etc. But I usually devote a day or two to each, since I know I’ll get through it eventually. If you’re a bean guy, buy 15 cans of beans. If you’re a soup gal, but 15 cans of soup. Canning is miraculous technology.

Think about stuff you can give away

I always throw this option in because travel hacking in many respects is a case of what my mom always calls “the rich getting richer.” Virtually every midsize or larger city will have a resource center that can put you in touch with local diaper banks, homeless and domestic violence shelters, transitional housing, etc. and they’ll typically have a long list of things their clients need. You shouldn’t claim a tax deduction for donating stuff you got for free, but Giant’s corporate shareholders will no doubt receive some leniency in heaven for their generosity towards the needy.

A legal riddle: what's the difference between avoiding and evading a reporting requirement?

For years, I’ve held what I think is the mainstream view in the travel hacking community:

But I recently ran into a situation that has me somewhat baffled.

I want to comply with reporting requirements but Walmart won’t let me

As many readers know, Walmart recently started requiring cashiers to input data from a government ID for money order purchases over $1,000. This slowed down the process of liquidating high-denomination Visa debit cards, but since my stores only allow one transaction with up to 4 debit card swipes, it wasn’t the end of the world, just adding 2-3 minutes per day to my liquidation routine.

The other day, I ran into a different problem: after inputting all the information from my ID, the computer simply dumped the cashier back into her main screen, without allowing the purchase to proceed. No explanation was given, so I have no idea if this was a one-time glitch or if my information has been flagged for some reason.

However, purchases below $1,000 don’t require ID, so I’m still able to liquidate, for example, three $300 Visa debit cards or two $499 Visa debit cards.

Now you can start to see the problem: if a store has a reporting requirement, but does not allow you to fulfill the reporting requirement, does it constitute structuring to instead make transactions that don’t trigger the reporting requirement? In other words, if I’m avoiding triggering, rather than evading complying with, the reporting requirement?

You can imagine more clear-cut cases. Since even nearby Walmart stores can have vastly different store policies, you might have access to one store that allows 4 debit swipes per day, one that allows 2, and one that only allows 1 swipe. If you want to liquidate a stack of $500 debit cards, you could visit each store once per day, triggering the reporting requirement at two of the stores ($2,000 and $1,000 transactions) and not triggering it once (the $500 transaction). There would clearly be no problem in this situation since you’re in full compliance with each store’s policy on transaction limits and company policy on reporting requirements. I actually used to do something like this fairly regularly.

You can also imagine clear-cut cases of violations. If a store has a policy of only allowing one swipe per day, you might visit the same store once on your way to work to liquidate one $500 card, and the same store on your way home to liquidate another. In this case you’d obviously be exhibiting a pattern of behavior deliberately intended to evade both the store’s one-swipe policy and the company’s reporting requirements. Don’t do that.

But my case seems to fall right in between those two bright lines. If I’m in full compliance with store policy (using only 2 or 3 of my four allowed swipes), and company policy (reporting requirements are only triggered for transactions above $1,000), then is it legitimate or illegitimate to keep my transactions below the reporting requirement, with which I am more than happy to comply? In other words, I’m not trying to evade the reporting requirement, I’m trying to avoid triggering what is, for all I know, simply a bug in their reporting software.

Conclusion

Vinh at Miles per Day mused the other day that 2019 will see more people questioning their ethical lines and delving deeper into gray zones, and I suppose this is a version of that. Structuring is a bright line that I have no interest or willingness to cross, and that hasn’t changed. Rather, I’ve run into a new situation and I simply don’t know which side of that bright line it falls on.

All travel hackers are amateur lawyers, so I trust you’ll sound off in the comments.

Four use cases for Hilton credit card spend

Lately I’ve been mulling a series of posts by Nick Reyes over at Frequent Miler about the relative value of earning Hilton Honors points directly through credit card spend, versus purchasing them for 0.5 cents each during Hilton’s periodic point sales. As someone who considers Hilton indispensable to my travel hacking practice, I took the opportunity to reflect on what I might be doing wrong (or right).

The Deal

As Reyes explains, the opportunity comes from the fact that while Hilton normally sells their points for 1 cent each, they very frequently offer sales where you can purchase up to 80,000 points per calendar year for $800, and receive 80,000 bonus points, bringing the cost per point down to 0.5 cents.

Moreover, you should be able to receive the same deal clicking through the TopCashBack portal and earning 2.5% cash back, or up to $20 on an $800 purchase. And of course the purchase itself will earn cash back, worth another $16 on a 2% cash back credit card. That means you can purchase up to 160,000 Hilton Honors points per year for $764, or 0.4775 cents each.

If that’s the cash cost of 160,000 Hilton Honors points, you should be at least reluctant, if not unwilling, to pay more than that in opportunity cost. For example, Hilton Honors credit cards earn 3 points per dollar on unbonused spend. If you can otherwise earn 2% cash back on unbonused spend, putting the same spend on a HIlton credit card would mean paying 0.67 cents per points — 40% more than they cost on the open market.

Even manufacturing spend in the Hilton Ascend bonus categories may mean overpaying: earning 6 Hilton Honors points per dollar spent at grocery stores means giving up 3 cents in travel on the US Bank Flexperks Travel Rewards card, while at gas stations it means giving up 2 Ultimate Rewards points per dollar on the Chase Ink Plus and Ink Cash.

All that is straightforward enough. What I wondered was, under what circumstances does it still make sense to put spend on a Hilton co-branded credit card?

Reimbursed business travel

It’s easy to forget today, but travel loyalty programs were not actually designed with cheapskates like me in mind. Instead, they were meant to encourage business travelers with control over their reservations to prefer one travel provider over another by offering to kick back a portion of the company’s travel budget to the traveler for later, personal use. And to an extent, that’s still what they do.

If you’re a reimbursed business traveler, it can make sense to charge your Hilton reservations to an Ascend or Aspire credit card. The former earns 12 points, and the latter 14 points, per dollar spent at Hilton properties, including taxes, resort fees, and room charges, the equivalent of 5.73% and 6.69% cash back, respectively (since 12 points can be bought for 5.73 cents during 100% bonus promotions on purchased points). That compares favorably to the 3 ThankYou points per dollar spent at hotels with the Citi ThankYou Prestige and 2 Ultimate Rewards points per dollar spent with the Chase Ink Plus.

Indeed, you would need to value the marginal ThankYou point at 1.91 or 2.23 cents each, and the marginal Ultimate Rewards point at 2.865 or 3.34 cents each to be willing to give up 12 or 14 Hilton Honors points per dollar spent. Those are not incredibly unrealistic values, but they’re well above the rate at which I would acquire those points speculatively.

And of course, American Express Offers linked to your Hilton credit cards may offer substantial additional savings, like the $70 off $350 offer I took advantage of in Hawaii last month.

Ascend free weekend night award spend threshold

If you don’t manufacture spend, and you don’t have reimbursed travel you can direct to Hilton, then you probably shouldn’t carry an Aspire card (with its $450 annual fee) and you absolutely should not carry an Ascend card unless you’re willing to meet the $15,000 cardmember year spend threshold to trigger a free weekend night award.

That free weekend night award has two costs: the card’s $95 annual fee, and the opportunity cost of putting $15,000 on the Ascend card instead of your next best alternative. Here I’ll assume that opportunity cost is 2% for unbonused spend, and 3% for bonused spend (gas stations and grocery stores). You should re-run these calculations if your opportunity cost differs, of course.

That brings the total cost of the free weekend night award to $395 or $545, from which we can back out the 45,000 points (worth $214.88) or 90,000 (worth $429.75) points earned on the spend, for a net cost of $180.12 or $115.25.

Using the same base cost of 0.4775 cents per Hilton point, we know $180.12 can buy you 37,721 points, and $115.25 can buy you 24,136 points. In other words, any Hilton free weekend night redemption above those values leaves you at least marginally better off than if you had put the $15,000 in spend on a 2% or 3% cash back card instead and simply purchased the corresponding number of points.

But ideally, you won’t be making breakeven redemptions. At a 95,000-point property, a free weekend night is worth $453.63 in purchased points, for a profit of $273.51 or $338.38. If the new Waldorf Astoria Maldives Ithaafushi really charges 120,000 points per night for a standard award — and those awards can be booked with free weekend night awards — then the potential profit is even larger.

Increased float

Even replacement-level affiliate bloggers have enough of a conscience to warn the folks they sell credit cards to that you should pay off your balance in full every month, since the high interest rates credit cards charge (sometimes after a low-interest or zero-interest introductory period) will almost immediately reclaim the value of any rewards you earn on spend.

A newbie taking this advice literally might use their manufactured spend to immediately pay off the card used to generate it. And indeed, during opportunities like the unlimited 5% cash back offered by Wells Fargo credit cards in the past, that’s sometimes the most lucrative strategy.

But more experienced folks understand that while credit card interest should be avoided, there are lots of advantages to holding onto cash, rather than plowing it back into the card used to generate it. A card with a 30-day billing cycle and 20-day grace period effectively offers a series of rolling 50-day interest-free loans. The more lucrative your short-term investment opportunities, the more willing you should be to maximize the value of those interest-free loans, a strategy discussed by Sam Simon and Robert Dwyer in the February 1, 2019, episode of their Milenomics Squared podcast.

That means if your credit limits are too low to meet your needs for cash to plow into your most profitable gigs, you may well find it worthwhile to put spend on a second-best or third-best card.

Ascend Hilton Honors Diamond spend threshold

In general, Hilton Honor Diamond status doesn’t afford very many concrete or guaranteed benefits. In fact, the only guaranteed benefit I’m aware of is that Gold members are only entitled to executive club access when they’re upgraded to a club floor, while Diamond members receive club access even when they are not upgraded. That’s not nothing, but it’s also not much.

Moreover, Hilton status seems to last more or less forever. So while Diamond status is a benefit of spending $40,000 per year on the Hilton Honors Ascend American Express card, you don’t have to spend $40,000 every year. If you spend that much even once, you’ll probably have Diamond status for at least 2-3 years, if not longer.

However, if you’re keeping the Ascend in order to hit the $15,000 spend threshold every cardmember year, you may find it worthwhile to also hit the $40,000 Diamond status spend threshold every few years, especially if you can do so in bonused spend categories.

Bonus use case: you just need more points

As Reyes pointed out in his post, while each individual Hilton account holder is limited to purchasing 80,000 (and receiving 160,000) points per year, Hilton has made it easy to transfer and pool points, so in principle you can simply enlist as many people as needed to buy points during each promotion and then combine them for your desired redemptions.

In reality, conscripting friends and family to help you spend thousands of dollars on virtual currency is as likely to generate dead-eyed stares as it is Hilton Honors points. Once you’ve picked the low-hanging fruit of yourself, your spouse, and your kids, you might simply not have any good options for additional points purchases. At that point, instead of wasting time trying to cajole your relatives into playing along, you might find that it’s worth slightly “over-paying” to avoid the fuss.

An annoying (but probably good) change to Visa gift cards from Staples.com

Like most (all?) travel hackers, I consider flexible Chase Ultimate Rewards points to be the most valuable currency for hotels (World of Hyatt) and award tickets (United Mileage Plus and Southwest Rapid Rewards), and even find myself redeeming them for paid airfare periodically at 1.25 cents each through my Chase Ink Plus card.

That means it’s a no-brainer for me to spend $50,000 per cardmember year at office supply stores, to earn 250,000 Ultimate Rewards points. That’s not the only way I earn Ultimate Rewards points (I also have two Chase Freedom cards and a Freedom Unlimited), but it’s a commonsense way to make sure I have a steady stream of points coming in each month.

Staples.com Visa gift cards can no longer be activated by Blackhawk phone reps

While I stock up on prepaid debit cards at Staples and Office Depot during promotions, my city unfortunately only has one of each, and they quickly sell out, so I top up my spend with monthly purchases of $300 Visa gift cards from Staples.com.

Those cards are mailed unactivated and unusable, and for each order, a separate letter is mailed with activation codes that can be entered online or over the phone.

In my experience, those activation codes typically arrive a day or two after the physical cards, and Blackhawk has long offered a workaround if the activation codes are delayed: after verifying your identity, their phone reps were able to submit manual activation requests without the activation codes.

Sometime between the beginning of October (my last order) and this week, that process stopped working. You can still activate gift cards using their phone system, but only using the automated phone tree; there’s no longer an option to speak to a phone rep to request manual activation of cards (or anything else).

This is annoying, since I typically order 18 cards per month, and waiting for the activation codes to arrive and then manually activating them is a pretty tedious chore, especially since the website makes you complete a “captcha” for every single card you activate. I’ve spent so much time looking for traffic lights and bicycles I can’t tell them apart anymore.

The previous system was extremely vulnerable

While phone reps previously “verified” your identity before submitting activation requests, the information needed to verify your identity was delivered along with the physical gift cards: your name, mailing address, order number, and the last four digits of the cards themselves (depending on the phone rep).

That meant anyone who knew what was in the envelope (anyone who knows what Blackhawk sells) could steal the cards and call in to have them activated using only the information in the gift card package itself.

It’s possible this threat was finally realized, or that enough such thefts actually occurred, and that led Blackhawk to make the change. It’s also possible, and perhaps more likely, that they decided to lay off some of their call center workers and needed to reduce the number and type of calls they handled.

Conclusion: probably for the best

If you manufacture a lot of spend, wasting a day or three waiting for activation codes to arrive can feel like an eternity, and I was definitely frustrated trying to find a way to talk to a phone rep until I realized the option had been completely removed.

But the frustration of not being able to immediately liquidate cards pales in comparison to the frustration of trying to get your money back if one or more orders of gift cards were stolen and liquidated.

Having gift cards and activation codes arrive on separate days is a fairly primitive form of one-factor identification (you have to be able to check the mail at the same address on two separate days), but since the previous system was zero-factor identification, on balance I think the inconvenience isn’t worth complaining about too much.

On the other hand, if your activation codes never arrive, then the inability to speak with a phone rep to resolve the issue is going to get very annoying, very quickly.

Two cautionary tales

I've been blessed multiple times to unknowingly move to communities that had favorable environments for manufactured spend. Now, that's not exactly a "coincidence," since many of the most hostile environments for manufactured spend are also the most expensive cities in the country (New York City, San Francisco), and my income doesn't support living there, so I've never lived there.

But I freely admit that it means this blog focuses more on successful manufactured spend techniques than unsuccessful manufactured spend techniques, since most of my techniques are successful!

MasterCard gift cards issued by U.S. Bank are a problem at Walmart

With that in mind, I took the recent occasion of fee-free MasterCard gift cards at Staples to deliberately revisit an old problem: can you use MasterCard gift cards at Walmart?

For several years after the Federal Reserve required prepaid debit cards to be PIN-enabled, MasterCard gift cards issued by U.S. Bank worked differently than Visa prepaid debit cards issued by Metabank at Walmart. Unless you knew about, and were able to convince your cashier to go along with, the "change payment" trick, MasterCards were unusable for money orders or bill payments.

This history means most people, under most circumstances, simply avoid MasterCard gift cards. After all, most merchants that sell MasterCards also sell Visas, and if a credit card or rewards program bonuses spend at a particular merchant, then your natural preference should be to buy the easy-to-liquidate Visa rather than the hard-to-liquidate MasterCard.

However, that natural preference hits a snag when a promotion comes along that targets MasterCard gift cards directly. For example, for folks who drive a lot, the cost of gas can make up a big part of their monthly budget, so when Stop&Shop offers bonus points on MasterCard gift card purchases, folks are understandably conflicted. How does the (relative) difficulty of liquidating MasterCards weigh against the accelerated earning when you pile gas rewards on top of the bonus credit card rewards you're already earning at grocery stores?

Plastiq isn't a good liquidation technique; Plastiq referrals are a good liquidation technique

This came up over the weekend when I asked a fellow travel hacker how he'd fared during the fee-free Staples MasterCard promotion mentioned above, since I'd only been able to grab 3 $200 cards (3,000 Ultimate Rewards points with my Ink Plus). He responded smartly, "what am I supposed to do with a bunch of MasterCard gift cards?"

I mentioned Plastiq, which allows you to you make payments to a variety of payees using prepaid debit cards, including bills that can amount to thousands of dollars per month: student loans, rent, mortgage, cable, and insurance payments, among others.

My friend again pointed out that under normal circumstances, Plastiq's 2.5% liquidation fee made the service scarcely worth using, let alone worth driving around town searching for gift cards.

The trick, of course, isn't that Plastiq is a good liquidation technique, the trick is that if you're good enough at promoting Plastiq as a liquidation technique, you get to liquidate an unlimited number of your own cards for free.

Affiliate bloggers rely on a constant stream of vulnerable newbies

The only income I get from this site comes from my loyal blog subscribers, Google Adsense, my Amazon Associates link, and the personal referral links I put on my Support the Site! page.

This gives me complete editorial freedom (manufactured spend is good, Membership Rewards points are bad, free night certificates are bad, companion tickets are bad), but it also means my income doesn't depend month-to-month on driving people to sign up for particular cards, chasing bounties or fretting when lucrative payouts go away.

It also means that I don't need to recruit any new travel hackers. My basic view is that most people who are mentally configured to be travel hackers are pretty easy to identify. You can give the absolute simplest task to someone: "buy a Visa gift card," and if they come back with a Home Depot gift card, you know they don't have the attention or precision to be a travel hacker.

That's not to say I "hoard" information; I love sharing information! I just don't have a rooting interest in recruiting additional travel hackers just because they happen to be eligible for new referral bonuses.

But if, on the contrary, your income depends on getting people to sign up for the first time for something, whether it's a Chase Sapphire Preferred card or a Plastiq account, then newbies are the world's most precious resource, and there is nothing more inevitable than a blogger trying to extend their appeal deeper and deeper into less and less appropriate target audiences.

That is to say, a blogger who successfully refers 100 people to Plastiq is correct when they say Plastiq is a good way to liquidate MasterCard gift cards fee-free, because they have $10,000 in fee-free dollars, but incorrect when they tell newbies, about whom they know nothing, to go out and buy a bunch of MasterCard gift cards and to liquidate them through Plastiq.

If you don't understand this reasoning, then a lot of blogger behavior looks absurd. Even setting aside the blogs that are actually owned and operated by credit card affiliate companies, why would Rich Weirdo Ben Schlappig participate in this humiliating spectacle for Rolling Stone? But if you understand that he needs to fish where the fish are, then it makes perfect sense that the more outlandish the venue, the more likely he is to find vulnerable newbies! After all, if your livelihood depended on it, you too would prefer to attract 10 signups from Brides.com than 1 signup from Flyertalk.

Conclusion

Unfortunately, even with a patient cashier and plenty of tries, I wasn't able to make the "change payment" trick work at my local Walmart. Thank God for grocery stores (and Plastiq)!

If you're already buying Hilton points for 0.5 cents each, why not buy in bulk?

I've never successfully bought one of the US Travel Association's "Daily Getaways," but when they're released I always poke my head over to see if anything jumps out at me as a fantastic deal. As usual, there's nothing too special, but the April 16 offer did catch my attention: buying up to 250,000 Hilton Honors points for 0.5 cents each.

Now, like all Daily Getaways, this is not, on its face, a very good deal, since 0.5 cents each is roughly what Hilton Honors points are worth (unless you have a particularly high-value redemption planned, and are certain to be able to find award availability).

However, I'm already buying Hilton Honors points for 0.5 cents each when I use my Ascend American Express card at grocery stores instead of my US Bank Flexperks Travel Rewards card. The latter earns 2 Flexpoints per dollar spent, worth 3% cash back towards travel redemptions, while the former earns 6 Hilton Honors points per dollar: 0.5 cents per Hilton Honors point.

why not buy in bulk?

The reason I won't be going all-in on this offer is that one of the benefits of earning points through manufactured spend over time is that you can calibrate your earning to your actual travel needs. While I "spend" $1,250 in foregone Flexpoint value whenever I earn 250,000 Hilton Honors points, I don't do so all at once, and if I suddenly find myself in more need of airfare than hotel nights, or vice versa, I can swing the dial in the needed direction.

Not a terrible way to meet minimum spend requirements

The best argument for buying Hilton Honors points in bulk at 0.5 cents each is simply as a form of manufactured spend. If you believe, as I think it's not unreasonable to believe, that Hilton Honors points are actually worth 0.5 cents each when redeemed for hotel stays, then buying them up front is simply a way of shifting forward in time your future hotel spend.

That's precisely what we do when we manufacture spend: we incur known, fixed costs in the present with sufficient confidence that the rewards we earn will be redeemed for enough value to justify the upfront payment. Normally you'd want to do that with a margin of safety: we don't normally pay 1 cent in advance for 1 cent in travel, since if all you're getting is 1 cent in travel, you may as well pay later and hang onto your money for now.

But if you have a minimum spending requirement to meet, and especially if you have a minimum spending requirement on an American Express card, where the most common manufactured spend techniques have attracted scrutiny and can cause signup bonuses to be denied, then an opportunity to incur $1,250 in expenses for $1,250 in Hilton Honors points may be worthwhile even if you don't have plans to redeem the points for outsized value, due the potential value of the signup or high spend bonus the purchase may trigger.

Don't sleep on the next couple weeks of manufactured spend

There are a couple current and upcoming manufactured spend opportunities I want to make sure readers are aware of.

Office Depot/OfficeMax Visa gift card promotion through March 17

This promotion comes around every few months and is always a good opportunity to load up on Ultimate Rewards points for folks who have a Chase Ink Plus, Ink Bold, or Ink Cash small business card. The current iteration of the promotion is $10 off $300 or more in Visa gift cards.

If you buy two $200 Visa gift cards with $6.95 activation fees, you'll end up paying $3.90 in activation fees after the $10 discount is applied, or 0.2 cents per Ultimate Rewards point if you pay with a card earning 5 Ultimate Rewards points per dollar spent at office supply stores.

This is worth doing basically regardless of your liquidation method. Even paying Plastiq (you can find my personal referral link on the Support the Site! page) $4.88 per card in liquidation fees brings your cost per Ultimate Rewards point up to just 0.68 cents each — a good deal!

Grocery store gas points on Visa gift card purchases between March 16 and March 22

Slightly overlapping with the Office Depot promotion, via Miles to Memories I saw that Giant, Stop & Shop, and Martin's stores will offer 2 gas points per dollar spent on Visa gift cards between March 16 and March 22.

These stores usually don't offer any gas points on prepaid debit card purchases, so it's potentially lucrative to time your grocery store manufactured spend to periods when these promotions are in effect, if you drive and especially if you have a way of storing extra discounted fuel.

I don't drive but have mused in the past about options for distributing fuel points to folks who do (there are some more great suggestions in the comments to that post).