[Update 6/21/19: Frequentmiler reports hearing from Simon corporate that this information is inaccurate, and it’s NOT possible for churners to buy $1,000 Visa gift cards. I’m a bit skeptical given the multiple sources of these reports; it’s possible that it’s being considered or that it’s in the process of being formulated. It’s also possible it’s not meant to be a change in corporate policy, rather a change on an individual level; as reader Ric noted, once you have five orders they’ll review your account and approve it for higher limits and the $1,000 cards. Of course it’s also possible that it’s completely inaccurate, I guess we’ll see.]
Pointchaser reports that Simon Mall locations are said to be in the process of enabling miles-and-points enthusiasts the ability to buy $1,000 Visa gift cards with a $3.95 purchase fee, shipped via U.S. mail.
It’s been known for long that Simon Mall carries $1,000 Visa gift cards which are available to corporate customers. From what I’ve heard, it’s not easy for just anyone to get into that corporate program. Now, it appears Simon Mall will allow those interested in racking up credit card points the ability to join the corporate program.
The corporate program is available both in-mall and online, I believe, but the report indicates that we’ll only be able to signup for the online option which has the cards sent via mail. Some may prefer the store option for security while many others prefer the mail option as they aren’t near a mall location. I don’t know if there are shipping fees on top of the $3.95 purchase fee.
This policy is said to be coming to Simon Malls nationwide. Regular gift card buyers will need to join a special mailing list. This could be done in-store or online.
In addition to the ability to buy $1,000 Visa gift cards, the program will also run “special promotions” for regular gift card buyers. I imagine this will be things like lower fees for limited times, e.g. $2.95 fee during holiday season.
This new program has not been publicly advertised yet, the information is coming from various Simon reps. I’m inclined to believe it only because we’ve seen Simon reach out to the churner community over the past number of months (Frequentmiler has been reporting on that); this is another move on that front.
Reader Ric adds: “I have confirmed with Simon Mall, and They need you to have a purchase history of at least five orders prior to approving higher limits and $1,000 cards. They will happily review your account order limits.”
Reader Philip adds: Shipping fee is between $.47 and $3.75, depending how many cards you order (1-10).
Hat tip again to Pointchaser
View Comments (102)
Noob comment/question alert...
I looked on their website and can't find anything about $1,000 gift cards and shipping them. I used to have a Simon Mall in Kansas City but it was bought out. Lame.
Anyone have luck buying $1,000 online with them?
For some reason, the link in notification email is broken. I had to search to get to this thread. Looks like all the new comments are gone?
I can verify that my Simon Mall does not have the ability to do $1000 in store for corporate; only amex.
How exactly do they make any money on selling these cards to the mile enthusiasts? I presume they get liquidated very quickly by us (compared to the organic buyers) and 0.395% fee for a 1k card would be insanely low on a permanent basis.
" ... 0.395% fee for a 1k card would be insanely low on a permanent basis."
That's probably why this was only a (now debunked) rumor. Despite the multiple sources, If it sounds too good to be true....
Good question. If this does take off on a significant scale, that would mean GC issuers like Meta Bank would be losing money on such cards. Meaning fewer promos at places like Safeway, possibly higher fees, and eventual shutdowns at Simon Malls. Oh, and possibly wider implementation of Level3 tracking or something like that, making it impossible to use CCs to buy GCs. This is coming anyway, just a question of how fast.
Not to worries that Metabank is losing money on this. Besides, if they loose money on some merchants (Simon, in your example), I'd expect them to tighten that up and instead focus on merchants where they presumably make more money (like grocers, etc).
I think we can safely assume Metabank isn't going broke on this scheme, unless they are going after VC money, and then that's a different end-game calculation of profitable vs losing money.
Big if true
If true, then big, else small.
For folks drooling over the possibility of buying $4k in MOs at WM in a single transaction, keep in mind that anything above $2K or $2500 triggers a requirement for you to provide info such as SSN, occupation, and other invasive info. May not be a big deal to everyone but worth mentioning.
True but that assume WM is getting a real SSN...
LOL, lying about stuff like this is a great way to end up in real trouble. This comment is on par with a 'genius" post above about faking a credit card number. Seriously, some folks are losing all connection with reality trying to score 20 bucks worth of points off a gift card.
Since it is not easy to get approved for a corporate account, I don't think many will have the chance to drool. Even those who are approved will think twice about "abusing" card in 1 swipe lest they get shutdown immediately.
I may be changing my first name to Simon.
Shutdowns and suspensions for some are likely to follow...
I see a few other asking but no answers yet. What is the big deal with this? Only Angle I see is either for sign up bonus... Or maybe with a card light freedom & transfer to sapphire? Seems like an easy catch for banks though
dont see a benefit. You can get 2 500.00 VGC in grocery with a 5% card. Pay fee of 12.00 Here you pay 8.00 on a 2 or 3% card... No difference. Also have to trust US Mail..I have had no problem with mail after 3 years of using GCM and GC.com..but still...
I suppose you are saving the time and miles to buy GC from physical location. Also, many areas no longer have Grocery Stores that sell $500 cards. My area doesn't. So you significantly reduce the buying time. If you are limited to a 4 swipe 1 trans WM, then $2K on a 2% card would get you $40 minus fees, get you to about $30 right? Might pay for your groceries on a visit.
I figure my Staples Ink purchases get me $35 or so. But then I need to work to liquidate UR or actually use them. I think I would take $30 cash instead. A BOA 2.625% card would net more if Iwant to take the MS risk. I actually get 15% more from BOA rewards by transferring rewards to BOA Bus card and buying Home Goods cards at 20% off. My wife is an interior decorator and spends at ton at Home Goods. I will be looking into this.
Possibly do this in addition to the 6 ink cards I have. I try to go to the local WM 1/day. Maybe need to get wife into it as well, as supplemental retirement income. I need the exercise as well for the couple mile bike ride to WM, so it is no cost to me.
Am I the only one paranoid that this is some elaborate trap? Don't they have to pay interchange fees? Perhaps the card is heavily discounted but churners are not going to leave unused money on the cards, we are not profitable customers.
They (I'm meaning Simon Mall C-suites/decision makers) may be benefiting in other ways. Increased YoY sales, Increased asset efficiency, return on net operating assets etc.
Aggressive accounting with those cards may make Simon Malls look like a beacon of profitability in a sea of struggling competitors. Their stock goes up or management incentives are paid out - and the C suite all get new houses/boats.
Could also just be padding a stat to attract better (or charge more) retailers to their properties - total goods sold, $ spent per visitor, or some other metric.
Inflating the right stats with MS VGC purchases may also enable them to keep a more favorable debt rating, which enables them to borrow at low/lower rates of interest.
I'm sure Visa GCs have a lower 'money that never really gets spent' rate than retailer-specific GCs, but they may be hoping to make some money off the forgotten leftover funds too.
Wouldn't the VGC provider (Blackhawk, US Bank, etc) be the one who profiteers on any all money left unspent on a VGC, not the merchant that sold it or has its brand on it?