I'm trying to understand something. I can buy Visa gift cards with air miles from shell? Is there a fee for using them? Is there a limit to what I can pick up? Seems like this would be a good way to pay for some vacations we take but I keep thinking there must be a catch.
There is a very big catch...
Activation fee as much as $6.95 (Visa $200 card).
I was browsing the grocery store gift card rack for my coworker who really wants to convert his STB Miles to cash.
Currently the highest denomination that could be loaded onto a prepaid Visa or Mastrcard was $200. MCard activation fee was $5.95 (plus HST). Visa $6.95.
Used to be one could get a Visa Paypower card for $6.95 and load as much as $950.
So at $200 maximum load with a $6.95 activation fee, you're paying 3.5% to convert Air Miles to a kind of cash.
I see where it is worth the fee to some people, like my coworker. He doesn't want to change his habits and shop at Sobeys or Metro and he doesn't care for Shell. He did STB five times with family cards, so has about $1,000 he would like to convert to cash. Given how easy STB was for him, it's certainly worth the 3.5% fee if he can convert the Air Miles to cash.
I shop at Sobeys and Rexall fairly regularly so I prefer to save my Cash Miles for bonus redemption opportunities.
Though I do have some concern that Air Miles will devalue everything.
Money is fungible. If they do devalue, I'm happy to just buy Sobeys gift cards etc online and use some mental accounting to earmark the Air Miles cash for travel.