Gift Cards from American Express for use while RVing or traveling

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Gift Cards from American Express for use while RVing or traveling

November 21, 2012, 08:03:59 am

Yahoo Message Number: 135280

This seems to be a new way people take extra greenbacks with them when away from home. The last time I used tradition Travelers Checks, I had trouble getting them cashed. I also had been able to get them with no fee from AAA. I had a AAA Plus RV membership, which I have now dropped, due to the coverage I get from GMAC Insurance. RV insurance includes Good Sam towing. In the past, when done with a trip, I would just deposit any left over Travelers Checks. I could also just save them for the next trip, because they do not expire.

Has anyone had experience with the Amex Gift Card. If so, how much did they cost (i.e. was it a percent or a flat fee).
Could you buy anything you wanted with them and turn them back to cash when done?
Walmart has Gift Cards as well, which always could be always used to buy fuel and groceries if nothing else. They can't be turned back into cash, but don't expire, so I would be able to eventually use them.

Maybe a combo of the two, would make sense on a trip. Any pros or cons on either, or info on any others company gift card, or pre-paid debt card, that worked well in the past would be appreciated.

Scot, Orange Park, FL

Re: Gift Cards from American Express for use while RVing or travelin

Reply #1 – November 21, 2012, 08:11:04 am

Yahoo Message Number: 135281

I don't understand what advantage a gift card would have over a conventional credit card when travelling.

Dick

Re: Gift Cards from American Express for use while RVing or travelin

Reply #2 – November 21, 2012, 09:02:19 am

Yahoo Message Number: 135282

I don't either...someone please enlighten me.
Not ever having any experience with gift cards, it would seem to me if they're lost or stolen you wouldn't have any recourse...that money would simply be gone. On the other hand, a lost or stolen credit card (or, I assume, debit card) would just take a call to the bank to have them cancel the card and issue a new one.

Linda Hylton http://earl-linda.blogspot.com

Re: Gift Cards from American Express for use while RVing or travelin

Reply #3 – November 21, 2012, 09:27:48 am

Yahoo Message Number: 135283

wrote:
I don't understand what advantage a gift card would have over a conventional credit card when travelling.
--- Neither do I; sounds like a snake oil marketing ploy to me. ;-) Maybe someone can explain any advantages?

Joan

Re: Gift Cards from American Express for use while RVing or travelin

Reply #4 – November 21, 2012, 10:22:02 am

Yahoo Message Number: 135284

This idea came up a few years ago, when somebody mentioned buying several thousand dollars worth of Walmart gift cards to pay for a cross-country trip. I can see a number of disadvantages:

1. Who will accept it? Walmart cards, of course, can only be used at Walmart. If you run out of gas in a small town, or need to pay for emergency repairs, a Walmart gift card will be of no use. This is less true of American Express, but still... having spent last summer traveling with a friend who used an Amex card as her first choice when making purchases, I can testify that many if not most small-town merchants don't accept AmEx, even if they take Visa and MasterCard.

2. Why give them your money? Buying a gift card means handing over your cash to the issuer up front. They get to collect interest on it until you've spent it all. Banks LOVE people who do this, because you're making them a gift of all that earned interest. No wonder AmEx is pushing this gift card scheme so hard--it's pure gravy for them! With a credit card, by contrast, YOU keep your money in the bank, earning interest, until the bill comes at the end of the month... then you pay it off in full (if you're smart). The interest and the advantages are all on your side.

3. What it it's lost or stolen? As Linda pointed out, if a gift card is lost or stolen, you're outta luck. That money is gone, period. By contrast, if a credit card is stolen, you simply call up the issuer and report the loss, and you're off the hook--no money is lost. That's a BIG difference!
4. Can you dispute a charge?
If something you buy with a gift card turns out to be defective, you *may* be able to return it... if you happen to still be in the same city, that is. If they overcharge you and you don't notice it till later, tough luck. In any dispute with a merchant, you're in a very weak bargaining position, because *they already have your money.* By contrast, if a credit card transaction goes sour for any reason, you can simply contest the charge and refuse to pay, and the card's issuer will back you up in most cases. You have the upper hand, because you still have your money.
Notice that I haven't said anything about debit cards so far. Debit cards are closer to gift cards than to credit cards. You may or may not have any protection if the card is lost or stolen. You're handing over your money at the instant of purchase, so you have little or no leverage in a subsequent dispute. And you've sacrificed the interest your money would have earned if you'd made the purchase with a credit card and then paid off the card at the end of the month.
Not to mention that a debit card is a direct line to your bank account. If that card is stolen, a thief can siphon ALL the funds out of your account overnight, and you'll have no recourse. Every financial expert I've read has advised not using debit cards for purchases.
Bottom line: using a gift card to pay for travel expenses (or indeed any expenses!) is a great idea--for the bank! They'd love it if you made them a gift of your money. For you, it has nothing but downsides.

Andy Baird http://www.andybaird.com/travels/

Re: Gift Cards from American Express for use while RVing or travelin

Reply #5 – November 21, 2012, 10:22:56 am

Yahoo Message Number: 135285

This idea came up a few years ago, when somebody mentioned buying several thousand dollars worth of Walmart gift cards to pay for a cross-country trip. I can see a number of disadvantages:

1. Who will accept it? Walmart cards, of course, can only be used at Walmart. If you run out of gas in a small town, or need to pay for emergency repairs, a Walmart gift card will be of no use. This is less true of American Express, but still... having spent last summer traveling with a friend who used an Amex card as her first choice when making purchases, I can testify that many if not most small-town merchants don't accept AmEx, even if they take Visa and MasterCard.

2. Why give them your money? Buying a gift card means handing over your cash to the issuer up front. They get to collect interest on it until you've spent it all. Banks LOVE people who do this, because you're making them a gift of all that earned interest. No wonder AmEx is pushing this gift card scheme so hard--it's pure gravy for them! With a credit card, by contrast, YOU keep your money in the bank, earning interest, until the bill comes at the end of the month... then you pay it off in full (if you're smart). The interest and the advantages are all on your side.

3. What it it's lost or stolen? As Linda pointed out, if a gift card is lost or stolen, you're outta luck. That money is gone, period. By contrast, if a credit card is stolen, you simply call up the issuer and report the loss, and you're off the hook--no money is lost. That's a BIG difference!
4. Can you dispute a charge?
If something you buy with a gift card turns out to be defective, you *may* be able to return it... if you happen to still be in the same city, that is. If they overcharge you and you don't notice it till later, tough luck. In any dispute with a merchant, you're in a very weak bargaining position, because *they already have your money.* By contrast, if a credit card transaction goes sour for any reason, you can simply contest the charge and refuse to pay, and the card's issuer will back you up in most cases. You have the upper hand, because you still have your money.
Notice that I haven't said anything about debit cards so far. Debit cards are closer to gift cards than to credit cards. You may or may not have any protection if the card is lost or stolen. You're handing over your money at the instant of purchase, so you have little or no leverage in a subsequent dispute. And you've sacrificed the interest your money would have earned if you'd made the purchase with a credit card and then paid off the card at the end of the month.
Not to mention that a debit card is a direct line to your bank account. If that card is stolen, a thief can siphon ALL the funds out of your account overnight, and you'll have no recourse. Every financial expert I've read has advised not using debit cards for purchases.
Bottom line: using a gift card to pay for travel expenses (or indeed any expenses!) is a great idea--for the bank! They'd love it if you made them a gift of your money. For you, it has nothing but downsides.

Andy Baird http://www.andybaird.com/travels/

Re: Gift Cards from American Express for use while RVing or travelin

Reply #6 – November 21, 2012, 10:37:34 am

Yahoo Message Number: 135287

A couple of other points to add to Andy's post:
• Amex is more expensive for the retailer than MC/Visa which is why many won't allow it • Some Visa/MC companies actually automatically extend the warranty on items purchased (of course read the fine print)

Bill Bussiere
Fox Head, Inc.

Re: Gift Cards from American Express for use while RVing or travelin

Reply #7 – November 21, 2012, 11:27:48 am

Yahoo Message Number: 135289

Debit cards are only slightly better. If you have one stolen and used, it is YOUR cash that is consumed by the bad guy. You may be able to get it back, eventually. But it the meantime, if your checking account is drained, you may have a big problem.

Vastly better to risk someone else's money, than your own.

-Dave '06 MB, Indianapolis

Re: Gift Cards from American Express for use while RVing or travelin

Reply #8 – November 21, 2012, 11:30:31 am

Yahoo Message Number: 135290

I recently shifted from pretty much all cash (obtained at ATMs) to rebate credit cards. I use them now for anyone who'll accept them.
Pentagon Federal for 5% gas rebate. Costco Amex for restaurant meals and lodging (2%). Discover 5% on rotating schedule of items.
Even at the minimum 1% rate the cash eventually adds up. These cards currently save me hundreds of dollars per year.

Of course nothing remains the same and strategy

Re: Gift Cards from American Express for use while RVing or travelin

Reply #9 – November 21, 2012, 11:33:22 am

Yahoo Message Number: 135291

One place I do use gift cards occasionally is where a $100 gift card can be purchased for $75 (restaurant or entertainment deals at Costco). If the card is good for a place you would go to anyway, these can be a good deal.

Re: Gift Cards from American Express for use while RVing or travelin

Reply #10 – November 21, 2012, 11:52:45 am

Yahoo Message Number: 135293

We are generally on the roam for 7 months a year and find that the combination of credit cards-ATM card-check works quite fine and on-demand...no need to lay out a vast amount of cash in one blow which creates a real security headache, no matter how careful one thinks one is.
Costco has a very cheap ATM fee if you're out of range of your normally-free network, as does Wal-Mart (slightly more expensive than Costco).
Wal-Marts all across the country take your local (that's your home address local) check anywhere. You should note that it creates an automatic instant withdrawal from your checking account so there is no "float." But the trade-off is that you can get your groceries, prescriptions and whatevers anywhere there's a Wal-Mart with a check.

Many campgrounds will take your hometown check, too.
I also find that gift cards/pre-paid cards can be a hassle because when was the last time you made a purchase for $50 or $75 or $200 exactly? I'm always left with $2.33 or some small number left on a card which I then have to "work" to remember to fish it out and burn it off.

So, in sum from all of us, AMEX Gift Card...leave home without it.

TinaP 2006 MB

[Non-text portions of this message have been removed]

Re: Gift Cards from American Express for use while RVing or travelin

Reply #11 – November 21, 2012, 12:59:44 pm

Yahoo Message Number: 135296

Gift Cards are meant to be gifts. You give it to someone and save on the postage from sending them a big box of stuff plus they can pick out what they want.

Michelle Ress

Re: Gift Cards from American Express for use while RVing or travelin

Reply #12 – November 21, 2012, 04:47:03 pm

Yahoo Message Number: 135300

"Every financial expert I've read has advised not using debit cards for purchases."

Tiny exception: if I'm far from a free ATM and I need cash, I'll use a debit card and get cash back. Typically I can get up to $100 back, with no fee.

Howard

Re: Gift Cards from American Express for use while RVing or travelin

Reply #13 – November 21, 2012, 05:43:43 pm

Yahoo Message Number: 135301

I really don't understand this paranoia about debit cards. I have been using one almost daily ever since there was a debit card. I have never had a problem, but maybe it's because of where I use them. It's always a national or regional chain like Walmart or McDonald's. Costco, gas stations, hotels and restaurants get the AMEX card. Those that won't take AMEX get my bank's credit card. Works for me.

Dick

Re: Gift Cards from American Express for use while RVing or travelin

Reply #14 – November 21, 2012, 06:20:25 pm

Yahoo Message Number: 135302

If I understand what you said, you have an AMEX and a bank credit card.
If so, why would you ever use a debit card? Is there some advantage that I don't understand? I have the same type credit cards and have never felt any need to have or use a debit card. At the same time, when in line at various stores, I see a debit card used way more often than I see a credit card being used. Am I missing something?

Rich - W7JVL - 2000 MB Birch Bay, WA

Re: Gift Cards from American Express for use while RVing or travelin

Reply #15 – November 21, 2012, 06:54:07 pm

Yahoo Message Number: 135303

I really don't understand this paranoia about debit cards.
Here's a good explanation as to why you want to use credit, not debit cards, for your transactions. Stated simply, you are in a much better position as a consumer on a purchase if the purchase is made with a credit instead of a debit card. In addition, don't forget that you are only liable for $50 in charges if your credit card is lost or stolen and you report it within 2 days of the incident. No such protection exists for debit cards. For me, as a CPA, I'd never, ever want to use a debit card until the protections for both are equalized by law. And I recommend no one use a debit card. Period.
http://www.cbsnews.com/8301-505146_162-57365965/4-reasons-to-use-credit-cards-versus-debit-cards/

http://www.wisebread.com/credit-cards-vs-debit-cards-a-comprehensive-comparison

John 1994 TK

Re: Gift Cards from American Express for use while RVing or travelin

Reply #16 – November 21, 2012, 08:01:41 pm

Yahoo Message Number: 135304

"I really don't understand this paranoia about debit cards."
In my post I listed four specific disadvantages. The articles John linked to expand upon the drawbacks I mentioned, and mention additional reasons not to make a practice of paying for purchases with debit cards.
This isn't paranoia; it's a calm analysis of the few pros and many cons.

Andy Baird http://www.andybaird.com/travels/

Re: Gift Cards from American Express for use while RVing or travelin

Reply #17 – November 21, 2012, 11:28:39 pm

Yahoo Message Number: 135306

Most folks here seem to like amazon. I use an amazon Chase visa card. It gives a percentage back for every dollar you put on it.
The percent varies depending on where you use, more on amazon of course.

The rewards you earn go into your amazon account and you can apply them to amazon purchases at checkout. By using my amazon visa for nearly everything I buy I'm constantly getting things from amazon for free or next to free like those flashlights we were just talking about. It's really nice.

I also have a PayPal debit card which also gives a percent back each month. For instance I pay my Millenicom bill with the PayPal debit card and then PayPal credits my account for a percentage of my bill giving me a discount on my internet.

Michelle Ress

Re: Gift Cards from American Express for use while RVing or travelin

Reply #18 – November 22, 2012, 04:03:19 pm

Yahoo Message Number: 135328

I can tell you one reason we use debit cards. Our credit union encourages their use and pays 2% APR if 10 debit purchases are made each month, if other requirements are met. We usually make small purchases at local stores we use frequently, charging everything else to credit cards. I have moved some of our savings from money market to checking because money market funds pay almost no interest. Sure, there's a risk of someone cleaning out our account, but it's a small risk if one is careful, and one we're willing to take. Also, we use two accounts that offer this service, so our risk is spread.

As usual, YMMV.

--Al in Scappoose --2002 26.5 MB

Re: Gift Cards from American Express for use while RVing or travelin

Reply #19 – November 25, 2012, 08:22:37 pm

Yahoo Message Number: 135375

The reason I asked this question, is that TCs are no longer accepted like they once were. What is the best substitute to raise cash in a hurry?

Credit cards are fine to charge things. However, most do not have a large limit when it comes to cash advances. Usually only about 20% of the total amount of credit availible can be taken as a cash advance.
In some cases even less. Not that much money in an emergency situation.
This is were preperation for travel comes into play, at least in my way of thinking. I'm looking for a safe cash equivalent, like TCs used to be.

Re: Gift Cards from American Express for use while RVing or travelin

Reply #20 – November 25, 2012, 11:54:00 pm

Yahoo Message Number: 135384

"The reason I asked this question, is that TCs are no longer accepted like they once were. What is the best substitute to raise cash in a hurry? Credit cards are fine to charge things. However, most do not have a large limit when it comes to cash advances. Not that much money in an emergency situation"
I'm not sure what kinds of emergencies you're anticipating, Scot, that would require large amounts of cash. The biggest ones I've run into in my life so far--hospitalization, major motorhome chassis work, collision damage, and so on--were all handled with a credit card. People don't expect you to have thousands in cash to pay for that sort of thing, so I'm not sure why you'd need a cash advance in an emergency. Can you give an example?
In any case, I never do cash advances with my credit card, because unlike a purchase, a cash advance begins accruing interest charges immediately. I simply pay for everything with the credit card (except in the rare cases where it's not accepted, as for example at New Mexico state parks), and then pay it off at the end of the month by electronically transferring money from my checking account.
But I know this isn't exactly answering your question, which comes down to: "I'm looking for a safe cash equivalent, like [traveler's checks] used to be." OK, let's assume that you have no credit card at all--or that you have a card with a limit of only a few hundred bucks--and you want to be prepared in case, for example, your rig breaks down and needs a new transmission, which could cost several thousand dollars.
Here's what I'd do: get a debit card, but don't carry it in your wallet. Hide it someplace in your rig, to minimize the risk that it could be lost of stolen. In an emergency, get out that card and use it to pay for repairs. (All this is assuming you have a few thousand in the account the card taps into, of course.) You could use it to withdraw cash from an ATM, but you'd only be able to get a few hundred dollars a day that way. Best to just use the debit card directly to pay for the repairs.
It wouldn't hurt to also carry a couple hundred bucks in cash--again, not in your wallet, but stashed someplace safe. (E.g., tuck it between the pages of the family Bible--thieves wouldn't be likely to steal that.)
Make sense? Of course, a credit card is still your best bet, if you have one with a decent-sized limit.

Andy Baird http://www.andybaird.com/travels/

Re: Gift Cards from American Express for use while RVing or travelin

Reply #21 – November 28, 2012, 12:28:41 pm

Yahoo Message Number: 135414

lifewithalazydazerv@yahoogroups.com, "Andy Baird" wrote: "I'm not sure what kinds of emergencies you're anticipating, Scot, that would require large amounts of cash. The biggest ones I've run into in my life so far--hospitalization, motorhome chassis work, collision damage, and so on--were all handled with a credit card. People don't expect you to have thousands in cash to pay for that sort of thing, so I'm not sure why you'd need a cash advance in an emergency. Can you give an example"
I just feel you never know what can go wrong while traveling. I just like some currency on hand if I should need it. I'm not seeing a direct replacement of TCs. Many more places take Credit Cards than in the past. Perhaps that's why Amex has not marketed a direct replacement for TCs. Just not enough demand, with almost everyone taking credit cards.

Scot in FL

Re: Gift Cards from American Express for use while RVing or travelin

Reply #22 – November 28, 2012, 10:27:30 pm

Yahoo Message Number: 135439

"I just like some currency on hand if I should need it... Many more places take Credit Cards than in the past."
Seems as if you've answered your own question, Scot: carry some currency for incidentals, but depend upon credit cards for emergencies.
There are very few places (not counting Lazy Daze!) that don't accept Visa or Mastercard these days. (As noted earlier, American Express is a different case--it's not a safe bet in small stores and small towns.) And nobody expects you to pay in cash for a major expense such as a transmission replacement or hospitalization.
It doesn't hurt to carry a hundred or two in cash for the few places like state parks and laundromats that don't take credit cards. (Although even those will always take checks, at least in my experience.) But for emergencies, a credit card is your best bet.

Andy Baird http://www.andybaird.com/travels/

Re: Gift Cards from American Express for use while RVing or travelin

Reply #23 – November 28, 2012, 10:58:42 pm

Yahoo Message Number: 135442

I wrote, "It doesn't hurt to carry a hundred or two in cash for the few places like state parks and laundromats that don't take credit cards. (Although even those will always take checks, at least in my experience.)"
What I meant was that even state parks will always take checks. But laundromats? Not likely. Sorry for the misleading wording.

Andy Baird http://www.andybaird.com/travels/

Re: Gift Cards from American Express for use while RVing or travelin

Reply #24 – November 28, 2012, 11:35:42 pm

Yahoo Message Number: 135444

Quote

"What I meant was that even state parks will always take checks."

Andy Baird

Andy & others...
Here's a situation with which I'm familiar. I camp frequently at Forest Service campgrounds on the west side of the Sierra. At one campsite they used to always take personal checks. Then one day that convenience suddenly stopped. From then on it's been cash only.
The other campsite does accept personal checks and they are within 2 miles of the first. Why the difference?
They are run by different concessionairs! And both of these camps are Federal facilities within a short distance of one another.

Steve S.
Lazy Bones & Jiggs

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