How I Made $7000 in Two Months Selling Gift Cards Without Leaving my Computer and Paid for My Honeymoon

Last Summer I signed up for the “Chase Ink Cash” business card and was able to earn 5x points on various gift card websites due to the way Chase was coding the purchases.

Buying Websites for Giftcards:
Paypaldigitalgifts (a huge moneymaker)

Selling websites for Giftcards:

I started off buying and selling starbucks digital cards.  I would buy about $1000 worth of Starbucks cards per day from Cardcash at around 15% – 17% off their face value.  I was then able to sell these on for around 2% off their face value (and Raise also takes a 12% fee).  I’ll explain my returns below:

 $1,000.00                   $980.00 Raise
Discount   16.0% Discount 2.0%
PricePaid $840.00          Fee       12%
Points 5x    4200 Net Money $862.40
Points 1.5x 6300
Breakeven     $777.00 Return
Profit            $85.40 10.17%
Now lets walk thru these numbers.  I bought $1000 face value of Starbucks cards at 16% off for a total price of $840 which Chase codes as 5x because the purchase is considered a Utility.  5 x 840 is 4,200 Chase Points.  Now if you have the Sapphire Reserve you achieve a 1.5x multiple on travel on points earned so these points are really worth 1.5 x 4200 = 6300 (or $63).  So I then subtract the price I paid $840 – $63 = $777.00 to see what my breakeven price would be.  After selling my cards on Raise for 2% off and them taking their fee I receive $862.40 which is a profit of $85.40 and a return of 10.17%.  This was done in a matter of hours or a few days.  I was able to find profitable arbitrage opportunities in many other brands and used a variety of websites and plan to post a bit more about my strategies.  At the end of the day I sold about $75,000 worth of gift cards to pay for the honeymoon of my dreams.

My LendingClub Dashboard

Above is my LendingClub Dashboard.  Of late, LendingClub is offering higher rate loans that still meet my criteria so the hope is that I can buy some 12%+ product.  My charged off rate has tailed off a bit since I tightened my buy box about six months ago but we will see if this actually comes to fruition as these loans tend to default after about 22 months (at least in my portfolio).  I only buy 3yr loans.