It looks like this:
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We've previously dug into the best cards for Amazon purchases, including cards that earn up to 5% cash back on your purchases. However, if you're willing to take an extra step before making your Amazon purchases, you could walk away with up to 5 points per dollar spent or an effective 10% return. And that's before factoring in any American Express Offers or other special Amazon promotions.
The secret to earning the most points on Amazon purchases is gift cards. While very few credit cards offer Amazon as a bonus category, some offer high category bonuses at places that sell Amazon gift cards, such as grocery stores, gas stations and office supply stores.
So, you could buy an Amazon gift card at Staples or OfficeMax and earn 5 points per dollar spent for an effective 10% back. Then, you can use that gift card like cash at Amazon.
(Photo by John Gribben/The Points Guy)
The Amex Gold offers 4 Membership Rewards points per dollar spent at U.S. supermarkets, on up to $25,000 per calendar year (then 1 point per dollar). Four points per dollar spent means an effective 8% return since TPG values Amex points at 2 cents apiece.
There are many options for maximizing your Amazon gift card purchases. However, there's one important caveat to keep in mind. Although all of the cards mentioned offer purchase protection, the coverage does not apply when purchasing an item with a gift card instead of a credit card. So, you may want to avoid using gift cards on certain purchases.
Bottom line
A little time and effort can go a long way. An effective 10% return on Amazon purchases is as good as it gets, though it's important not to forget the trade-off between earning points and getting purchase protection.
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