Why do I value all $100+ travel-related purchases at 50 cents on the dollar when using my Barclaycard Arrival Plus card? It’s a straight matter of economics:
- Gift cards cost either $3.95 or $4.95 per $500
- Liquidating gift cards cost either $0.46 or $0.59 per $500
- That puts total costs per $500 spend at around $5.00
- 2.05% travel cash back on $500 credit card spend equals $10.25
- For every $10.25 in travel expense my cost is really ~$5.00, or 50% off
I’m sure some naysayers will talk about opportunity cost with 2% cash back cards, or Discover It Miles at 3% for the first year. And don’t worry, I utilize those as well. But I currently sit with a very large credit line with Barclays for my Arrival card, utilize it for some everyday spending, and have good reach with the card.