After buying our temporary Target Prepaid Redcards from the branch outside of Providence, RI last weekend, we have since received our permanent cards (with our names on them, to boot!). For the first experiment, I confirmed that we can pay our credit card bills back using the money loaded onto the Redcard account.
When we first purchased the cards, I put $100 on each account as I am still new to manufactured spending and hesitate to dive all the way in. When looking at the account online, it notes the transaction here:
When looking at my credit cards statement for my Chase Sapphire Preferred card, I saw the same transaction with the $5 opening fee, noting the points earned in the transaction.
One I received our permanent cards, I was allowed to go to the online Bill Pay section and submit the same credit card as an option and submit the payment.
The record then shows up as paid on the Target Prepaid transaction log like this:
Finally, I checked my online Chase account to view the transaction there. It took about 5 days to post:
Overall, this will be a very lucrative use of time as every month we can max out each Prepaid card to the tune of $5000 each, meaning we will earn 10,000 points per month with this method. If we decide it’s worthwhile, I may even use my Ink Plus card to purchase Visa Gift Cards at staples to get the 5X multiplier, earning 50,000 points per month in the end. Granted, that will cost about $250 in fees, but may be worth it for certain ticket purchases.
While in Providence, RI for Thanksgiving, my fiancée and I took a trip to the local Milford, MA branch of Target to purchase our Target Prepaid Redcards. This new card allows potential manufactured spending in the $1000s per year.
Our plan is simple: every month we will go to our local Target branch with the Redcard and use a points-producing credit card to “load” money on it. Then, once the money has been processed, we will use the Redcard’s online bill pay feature to pay back the debt from the card we used. Since the monthly maximum is $5000, with the two cards we have we can earn at least 10,000 points of manufactured spending each month.
It is possible to earn more points, however, in a number of different ways:
1) If you have a credit card that earns more than 1 point per dollar spent. Some cards treat Target as a “grocery store” in their coding, allowing some cards that give 2x points some play here. Or you might have a card like the United Mileage Plus Club Card that earns 1.5x points on everything.
2) You might have a card that earns 5x points from an office supply store like staples or from a pharmacy like CVS in which case you could purchase debit gift cards (for a small fee) and loud up that way. For me, this might be lucrative enough as I can get a $200 gift card for $4.88. If I earn 1000 points, the cost becomes <0.5 cents per point purchased. We shall see.
We have not received our permanent cards just yet (they arrive in 7-10 business days) but we are excited.
If you want more particular information, visit the FlyerTalk forum page on this card.