So, this is going to be one of those things that sort-of-kind-of makes sense, but I’m just surprised to see a company make a move like this. Capital One is moving forward with a change that will impact every cardmember that redeems their cashback and points for gift cards.
If you have been saving your cashback or points for a while now, and were hoping to redeem them for giftcards, you may be in trouble. Capital One has removed the ability to redeem for giftcards! Depending on which card you have, and it’s reward structure, you will be able to redeem for either statement credit or travel purchases.
Seeing that we always like to prioritize the best possible redemption, this move leaves our Capital One cardholders with a bit of a problem. Those that have cards that redeem for travel purchases like the Venture line are currently stuck and unable to purchase travel. The next best option then, would be giftcards, where there are usually deals to be had such as getting a $50 gift card for $40 or $45 dollars. While your money is parked in that service, at least you’re getting a deal.
I would imagine that Capital One is worried hat a lot of people are going to go for options like these, and in turn, Capital One would lose money. So far, they are the only ones to make this move, so we’ll see if anyone else follows suit. Hopefully this is only a temporary measure that we will see reversed once the virus situation looks better. In the meantime, if this is something you rely on, it may be better to hold off on making a bad redemption and wait this change out.
Are you one of those that usually redeem on your Capital One cards for gift cards? What is your strategy now? Let us know down in the comment section below.