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If you hold one of the Capital One Venture cards, you know that miles are generally best used to “erase” travel purchases at a 1:1 ratio (1 cent per point) or transfer to airline/hotel partners. But right now, Capital One is running a 25% off promo on select gift cards that actually lets you cash out at a higher rate than usual. (HT: ML)

The Math: Why This Deal Makes Sense

Normally, redeeming Capital One miles for gift cards yields suboptimal value, i.e a $100 gift card typically costs 12,500 miles (0.8 cents per point).

However, with this 25% off sale, the cost drops significantly:

• Promo Price: A $100 gift card costs just 9,375 miles.
• The Value: This yields roughly 1.06 cents per point.

Here is how that compares to your normal redemption options:

Cash Back Cardholders Take Note: This discount also applies to Capital One cash back cards. Interestingly, it is offered at a better rate of $90 to $100 gift card ratio (a 10% discount). Because of this, you should not transfer your cash back rewards to a Venture card if you plan on redeeming them for these gift cards. Keep them on your cash back card unless your ultimate goal is to transfer them to travel partners.

Participating Merchants

The sale applies to both digital and physical gift cards in denominations ranging from $25 to $200. The current eligible merchants are:

• DoorDash
• Domino’s
• H&M
• Lowe’s
• Buffalo Wild Wings
• Gap Options
• Michaels
• Wayfair
• adidas
• Total Wine & More
• Under Armour
• Fanatics
• Topgolf
• Academy Sports + Outdoors

Who Should Jump on This?

This deal is an easy win if you already planned to spend cash at these specific retailers and don’t normally transfer to airlines (or have the ability to do so), especially if you don’t normally cash out for travel either, and want to cash out above the standard ratio.

The Expert Caveat: If you regularly transfer your Capital One miles to airline and hotel partners, hold onto your points! Partner transfers can still net you 1.5 to 2+ cents per point in value. But for a guaranteed, effortless cash-out option, this 1.06 cpp rate is an excellent baseline.

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