Microsoft launched a new cashback program, and you can basically get free cashback just by signing up. No one knows how long a giveaway like this will last.
[10/20 Update] Today I received an email from MS saying that Earn By Miscrosoft will soon be discontinued. The details are as follows:
- Effective immediately, Earn by MS is no longer accepting new registrations
- Users who previously signed up can still earn cashback through this program until 11/15
- All cashback earned must be redeemed by 3/5/2017, or it will expire
My suggestions:
- If you already signed up for this program but have not earned any cashback yet, and you want to trigger the $10 signup bonus, you can use your linked credit card to reload your Starbucks account or buy a gift card to activate the $10 reward. You can also trigger it by buying gas at Shell or snacks at 7-11, or by buying an Amazon gift card through the in-site Giftcardmall page. $10 is also enough to buy Skype credit, a mouse, a mouse pad, or something similar.
- If you already have some cashback in your account, you can buy something inexpensive from the Microsoft online Store, and shipping is free. For example:
- Skype Credit (can be used for international calls)
- PC accessories sale (small items like mice and cables)
- Xbox one games
- For the cashback redemption process, see: redemption process
Sigh, as expected, programs that give away free money never last long.
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Overview of Earn By Microsoft
Earn By Microsoft is a new cashback program launched by Microsoft. It is very simple to use: you just register your credit card or debit card number with the program, then use that card at eligible merchants in-store or online, and you will earn extra Microsoft credit (without affecting the rewards you already earn from your credit card itself). These merchants include gas stations (Shell), supermarkets (Whole Foods), convenience stores (7-11), coffee shops (Starbucks), and various local restaurants.
The Microsoft credit you earn can be used at Microsoft retail stores or online. You can buy electronics such as computers and XBOX, as well as software and games. Since the rewards are issued as Microsoft credit, this cashback account must be linked to a Microsoft account. If you do not have a Microsoft account, you will need to register for one first.
At the moment, the eligible in-store merchants in this program are limited to three US states: Arizona, Washinton, and Massachusetts. In other words, only purchases made at physical stores in those three states (for example, buying gas at Shell in one of those states) can earn extra cashback. Fortunately, this cashback program also supports online purchases, and online spending is not limited by location. For example, if you make a purchase on the Starbucks website, or use the mobile APP to reload your Starbucks card, you can also earn extra cashback. The credit earned can be used on Microsoft's website, but for in-store use, you can only spend the credited rewards at Microsoft retail stores in those three states.
How to Sign Up and Use It
If you do not already have a Microsoft account (such as Outlook email, XBOX, or OneDrive), first register one through the link below. If you already have one, you can skip this step.
- Microsoft account registration link (remember to set the country as the United States)
Once you have a Microsoft account, you can register for Earn By Microsoft directly through the link below. There is currently a signup bonus.
- Earn By Microsoft registration link (after signing up and using it once, you get an extra $5 credit)
Click enroll, and you will see that it gives you $5 in credit. Enter your email below to receive transaction conformation.
Then enter the credit card you want to enroll (currently only Visa and MASTER are accepted). You can choose any card for now, and you can add more cards later.
After registration, you can add multiple cards to your account.
Once all cards are added, you can use those enrolled credit cards at eligible merchants' physical stores in those three states, or online with those merchants without location restrictions, to earn an extra percentage of cashback from Microsoft. At the same time, you will still earn your normal credit card rewards as usual, unaffected.
For example, I used a registered credit card to buy a $5 Amazon gift card on the website operated through Microsoft's partnership with GiftcardMall. After the purchase, I received a confirmation email from Earn By Microsoft. At the same time, it also showed up under transaction History in the account.
Merchant Coverage Analysis
At present, Earn By Microsoft includes the following merchants, with the following reward rates:
Among them, the following merchants are especially worth noting:
- Starbucks online load 10%: Reloading your Starbucks account online earns 10% cashback. In the future, when buying coffee, do not pay directly with your credit card. Instead, use your credit card to reload your Starbucks card first, and get an extra 10% back from Microsoft for free. Direct in-store spending only earns 5%, and it is limited to those three states, while online reloads are not restricted by state.
- 7-11 5%: People in those three states are lucky, since 7-11 often sells Amazon and even Visa gift cards. After registering for this program, buying gift cards at 7-11 not only may qualify for 5% rewards from your credit card, but also earns an extra 5% from Microsoft for free.
- Shell 3%, Whole Foods 5%: If you have a card you use for gas or groceries, do not forget to register it for this program. However, it only applies at gas stations and Whole Foods in those three states (there are data points suggesting it may also work in other states).
In addition, Earn By Microsoft also offers an extra 7% cashback at some local restaurants. After registering, you can change the location to search, but it is limited to restaurants in the three states mentioned above.
Recently, the program also added GiftcardMall as a cashback partner, meaning that buying certain designated gift cards can also earn an extra 5% cashback. However, these gift cards must be purchased through Microsoft's designated page: https://microsoft.giftcardmall.com/. Some of the available gift cards are shown below:
In other words, buying those gift cards (Amazon, Sephora, Staples) can get you a free extra 5% back from Microsoft, which is pretty nice. Also, the gift cards sold by GiftcardMall are first-hand gift cards, so they should be relatively safe.
Best Ways to Use It
General Consumers
If you’re in Arizona, Washinton, or Massachusetts, just add any credit cards you’d use at these merchants to the program and wait for the cashback to roll in. For Starbucks, loading money online earns even more cashback: 10%. If you’re not in those three states, Starbucks may be your main option. Of course, everyone can still use the extra 5% cashback on gift cards. If you can’t immediately find discounted Amazon gift cards, buying through this program is also a decent option.
Advanced strategy
If you’re in those three states, you can buy other merchants’ gift cards at 7-11—gas cards, Amazon, Visa gift cards—and effectively pick up an extra 5% cashback. Remember to use a credit card with bonus earnings on gas, since some 7-11 purchases code as gas station purchases. For the other stores, it’s still unclear whether buying gift cards on the official websites of Whole Foods or papa johns will earn cashback. If it does, then people in other states could simply buy gift cards online and use them in-store to effectively get 5%/7% cashback as well.
How to use the points
By linking a credit card, you can get Microsoft credit for free—but how do you use that credit? Don’t forget: these points expire one year after you earn them!
How Credit redemption works
The process is as follows:
- Use any credit card added to your account to make a purchase on Microsoft’s website or at a Microsoft retail store in one of the three designated states
- The charge will appear in your credit card activity just like a normal purchase
- After that card’s monthly statement closes, Microsoft will return the credit in your earn by ms account to your credit card as a statement credit (of course, if your purchase amount is less than the credit in your account, only the purchase amount will be refunded)
In short, just use a card that’s linked to your Earn by MS account for a Microsoft purchase, and let Microsoft handle the rest.
Here’s a small trick: if the card linked to your account is one that earns good rewards on dining and you use it for Starbucks purchases, then when redeeming this credit, you should use a card that earns well on online shopping. For example, the Citi AT&T credit card offers 3x on online purchases and is a great fit. You could also add an AMEX card to get extend warranty.
What should you buy?
If there’s something you actually need from the Microsoft website, just buy it directly. Don’t forget that when shopping, you should also go through a cashback portal and use a coupon to save even more. None of that will affect Microsoft giving you the credit.
If you don’t need Microsoft hardware, games, or software, consider these two items:
- T-Mobile Refill Card (can be used to pay your T-Mobile phone bill)
- Skype Credit (for international calling)
Even if you can’t use these yourself, you could sell them to coworkers or classmates who need them. Another option is buying Microsoft gift cards, though it’s unclear whether those would trigger the credit rebate. If I get a specific data point, I’ll update this.
If you really don’t need anything, buying a mouse or keyboard is fine too.
Redemption example
I happened to be looking to replace my computer recently, so I bought one from the Microsoft Store using the credit card linked to my Earn By Ms account (the Citi AT&T credit card, which should earn 3x TYP at the Microsoft Store). Here’s what happened:
- 8/23: I linked the AT&T card to my EarnbyMS account. I used that card to buy the computer, and immediately after the purchase I received an email saying the cashback in my account had been successfully redeemed
- 8/25: The computer purchase moved from pending to post
- 8/26: I received the credit from Microsoft
So the conclusion is that you do not need to wait for your credit card statement—the money shows up directly. Specifically, I bought a Dell Insprion 13, and at the time of purchase it also came with 3 months of hulu and a win10 tablet worth $99. The computer has already arrived and works quite well, though it’s definitely much uglier than a Mac...
Tips summary
[Updated 2016.6.11] I tested an in-store 7-11 purchase here (at a 7-11 outside the three designated states). By paying with a linked credit card and buying snacks, I was able to trigger the 5% cashback. It also triggered the sign-up bonus for registering an account (when I signed up it said $5, but I actually received $10). So my guess is that 7-11 gas and convenience store purchases nationwide may qualify for the extra 5% cashback. Some 7-11 locations also carry gift cards for other merchants, such as Staples,sears, and some may even have Visa gift cards or PayPal my cash.
[Updated 2016.4.14] According to the test results in this article, Shell gas purchases and Whole Foods grocery purchases outside the three designated states both successfully earned Microsoft credit in the end. Starbucks in-store purchases still do not appear to work nationwide for now, but directly loading a Starbucks card online does successfully earn 10%. If you’ve tested it successfully too, please leave a comment and let us know. Thanks!