Paying balance with gift cards?

I’ve been reading posts about buying Disney gift cards at a discount and using them to pay the balance on a vacation package. I think it’s a great idea and can really save a family some cold hard cash. However, I have one concern that I need your advice on before I actually decide to do it.

If I pay the balance with GCs and somethings comes up that I have to cancel, the balance will be refunded to the GCs. If that happens, what do you possibly do with 2-3K on Disney GCs, assuming you are not planning another trip in the foreseeable future? I hate to tie up that much money in GCs. I also hate to pass up the opportunity to save a little money.

Thank you for your help.

Open a DVA. Disney vacation account. You can use it to pay for packages, room, tickets. You can deposit your GCs in the DVA for safe keeping and combining. If you need to cancel, refunds will return to the DVA account. But it will still be Disney funds only. So if you are not sure that you will take a Disney trip at sometime or don’t have enough emergency cash regular savings, this is likely not a good choice of savings for you.

I agree with @AuntB_luvsDisney. I recently paid off my upcoming trip with gift cards (I had transferred a number of cards into one). My TA reminded me to keep that card in case I cancel. Since I always have a Disney trip in at least planning stage I am not concerned about not using that card.

You can withdraw funds back out of the DVA with no penalty at any time. The form of payment for deposit is how the funds will be refunded. Refunds take 5 days to process.

Their site states there is a 7 day hold on any funds put into the account (probably for clearing purposes) and this applies to requesting a refund within 7 days of making a payment into the account.

So you can do the DVA and have the funds not tied up in GC’s if you have to cancel. Use DVA funds to pay for qualifying vacation purchases and buy your GC’s right before your trip.

Your cash money is better off in a regular savings account earning interest than in a DVA earning nothing. The only reason I have a DVA is to deposit discounted Disney GC (10-20% discounted) I would not recommend depositing cash into a DVA. It’s not a good choice for savings.

[quote=“nolacrazygrl, post:4, topic:26130”]
You can withdraw funds back out of the DVA with no penalty at any time. The form of payment for deposit is how the funds will be refunded. Refunds take 5 days to process.
[/quote]. This is true. I have deposited GC for safe keeping/combining and then withdrew closer to my trip to pay for dining and spending expenses on vacation.

Doesn’t the DVA earn you a gift card? Is it $20 for every 1,000? I understand that is a lump sum “interest” payment but if you combine that with discounted gift cards or payments from a Disney visa (that you pay off monthly) and earn rewards in the long run the interest/benefits are interesting.

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The DVA earns $20 for every $1000 you SPEND on Disney qualified purchases not what you deposit. So yes if you are depositing discounted Disney cards and using those funds for a vacation purchase you will come out ahead with your “interest” earnings. However, if you are depositing cash and withdrawal the funds because you decide not to take a Disney trip then you have earned a big fat zero! I only deposit discounted gift cards so I am not sure how the Disney visa rewards would work, maybe 2% rewards for each deposit? I am greedy that’s not enough savings for me :wink:

Disney vacation account, I had not idea this existed. This sounds like a great idea. If I have to cancel our current trip, I’m sure we will plan another one, just not sure when our schedule will allow it at this point. Thank you for the great information. I’ll start looking into DVA right away.

I knew I could count on LIners to help me out.