Bluebird vs Redbird (Target Prepaid Redcard) – Which is Better for Manufactured Spend?

Bluebird vs Redbird

If you haven’t heard about it yet, the Target Prepaid Redcard, which we in the miles/points world now refer to as Redbird, is a brand new product that is very similar to Bluebird but has some key differences. These differences are rather significant for those who manufacture spend, so let’s point out some of the positives and negatives of each so you can decide which product you like better. It might not be a no-brainer as you might have expected.

Bluebird

First, let’s go through a quick refresher for Bluebird:

• Can load up to $5K/month per card.
• Can load up to $2.5K per day at Walmart.
• Can only be loaded with PIN-enabled cards or reload packs, both of which usually charge a fee to obtain.
• Pay off your credit cards (and other bills) directly from your online account.

Redbird

Redbird works similarly. Here’s a list of the important features:

• Can load up to $5K/month per card.
• Can load up to $2.5K/day at Target, BUT only $1K per transaction.
• Can be loaded directly with a credit card for no fee.
• Pay off your credit cards (and other bills) directly from your online account.
• Only available in select states/cities so far.
• See Frequent Miler’s Complete Guide to Redbird if you need more info.

Now let’s take a look at some benefits of one card versus the other. As you read through these, try to determine which factors are important to you so you can decide which of the two products is best for your situation.

Benefits of Redbird/Target over Bluebird/Walmart

1. Load Redbird with a Credit Card for Free

The most important difference is the one I underlined above for Redbird – you can load the card directly with a credit card for no fee. If you did 5 loads of $1K each with your points/miles-earning credit card, you’re earning 5,000 points for $0 in fees. The only thing wasted is your time/effort getting to Target.

2. Target > Walmart…Usually

Another key difference is that you can go to Target instead of Walmart. I know I’m not the only blogger that people have complained to saying “But there’s no Walmart near me!” This problem is somewhat alleviated with the fact that Target stores are more prevalent in certain areas than Walmart. For me in Orange County, CA, There are at least 10 Target stores between my home and the nearest Walmart (which is only about 15 minutes away).

Oh and don’t forget that Target employees are in almost all cases more pleasant to deal with than Walmart ones. Let’s take that a step further and say that even Target customers are more pleasant to be around than those at Walmart. It may be a little less entertaining to look around the store, but I think most people would feel better in a Target than a Walmart.

By most counts, the above two points would put Redbird as the new champion of manufactured spend. It is what Frequent Miler would call a “perpetual points machine” whereby you can continuously earn points for free, albeit with a $5K monthly limit.

Benefits of Bluebird/Walmart over Redbird/Target

So if Redbird is a perpetual points machine, then what possible benefits could Bluebird and Walmart have over it? There are several, and they almost exclusively benefit those that partake in relatively heavy manufactured spend. They will particularly benefit those that have a Walmart with a functioning Money Center machine. Here are some benefits:

1. In Addition to Loading Bluebird, You Can Also Buy Money Orders at Walmart

A well-known limitation of the Walmart Money Center machine is that you can only load $1,999.99 at a time before the machine freezes. After waiting 10 minutes, the machine is good for another $1,999.99. In those 10 minutes you only have a few options – you can roam the store, have a seat at McDonalds, or get in line to MS some more with a cashier (either the Money Center line for money orders and/or Bluebird or regular cashiers for just Bluebird). So instead of dead time, you can MS more.

When loading Redbird, you must see a human. You can go do different cashiers and even load it at the customer service desk to make this less weird, but there are generally far fewer cashiers at Target than at Walmart.

2. You Don’t Have to Interact with a Human if You Have the Money Center Machine

3. If You’re Using the Machine, You Can Load Multiple Bluebirds a Day Without Anyone Raising an Eyebrow

To further along what I wrote above, the machine has some positives/negatives of its own. The positive is that you don’t have to deal with a human, which to me is a rather big positive. The longer this “game” goes on, the more scrutiny our techniques receive. A countless number of people have told me that they were denied a money order or Bluebird load because the Walmart (or other store’s) employee asked to see the card, then denied them from using it because they saw it was a gift card.

I’ve experienced this as well. The right thing to do in this situation is to simply say “OK” and walk away without making an issue of it. Remember that person’s face and try not to get in their line ever again. I’ve also adopted the “ninja” method of showing your real debit card, but swiping the gift card. It takes some sleight of hand, but it’s really not too hard.

Still, all this is avoided by using the machine, which couldn’t care less about what PIN-enabled card you’re using (aside from Vanilla-branded ones of course). That also means you can load 5 or 10 (or more) separate Bluebirds a day because the machine simply doesn’t care.

4. Large MS Purchases are Better Than Small Ones (In My Opinion)

Another benefit of the Walmart/Bluebird method is the way transactions go onto your credit card. For Walmart/Bluebird, you have to already have PIN-enabled cards in hand. You’ve presumably bought a large number of these gift cards at the same time to make your life easier, so the transaction on your credit card account shows as one lump sum of all the gift cards you bought in that transaction – $5K, $10K, etc. I see this as a benefit if you’ve built your MS accounts properly – it saves you time and adds fewer but larger transactions.

At Target, however, you must make multiple transactions of $1K at a time. That means that if you do heavy MS on one particular credit card (say you’re trying to earn Ultimate Rewards or SPG points), then your credit card accounts will show a lot of $1K transactions. If you control 5+ redbirds, that’s 25 separate transactions of $1K each. To me, that looks a lot more suspicious to banks than separate charges of $15K and $10K.

Again – this is only relevant to those that MS relatively heavily. If you’re using only one Redbird per month then you should have no issue with this. Similarly, if you’re not focusing your spend on one particular card or bank then you should be able to comfortably build your balances on each account (for example load one Redbird with an Amex, one with a Citi card, one with a Chase card, etc.).

If you’re trying to accrue Ultimate Rewards points then the easy way to avoid this is to split the charges onto your Freedom, Sapphire Preferred, and Ink cards. They’ll all earn the same points. For others like SPG points, you can split between the personal and business versions of the card. Still not ideal, but better than nothing if you have both versions.

Some might still benefit from using gift cards for Redbird/Target simply because of the lack of Walmarts around them.

Summary

It may be hard to locate a card, but Redbird and Target is a truly wonderful development in the world of MS. Don’t go cancelling all your Bluebirds just yet, however, because chances are that if you have more than a couple of them, Bluebird/Walmart might still be the right choice for you.

Redbird/Target is great if:

• You don’t have a Walmart around you.
• You absolutely hate paying any fees.
• You are a light MSer.

Bluebird/Walmart is great if:

• You have a Walmart with a functioning Money Center machine nearby.
• You manufacture spend at a relatively high rate.
• You control multiple Bluebirds.
• You purchase money orders.

Do you prefer Redbird/Target or Bluebird/Walmart?