Get 4.2% on all purchases with the American Express Prepaid Card

Another Amex deal (no, I am not paid in any way by them, except by exploiting opportunities like this next one).  American Express has introduced a Prepaid Card, a re-loadable stored value debit card of sorts.  There is really nothing special about this card, except the way that you can reload it.  They expect you to link it to a bank account and load it via direct debit, and if you get a new card and reload it this way with $50 in July, Amex will give you $10.

However, there is another reload method that yields 4.2% on everything you buy.  For all of my strategizing to get more than 2% back, this deal trumps them all.  Office Depot sells "vanilla reload" cards, displayed right next to "temporary" American Express prepaid cards in its retail locations.  Buy these vanilla reload cards with a credit card that rebates you 5% on office supply purchases, and you will net 4.2% after the $3.95 fee per reload card (maximum value of $500).  You will pay $3.95 for the reload card but get $25 back on your $500 purchase.  Cards that give you 5% back include:

• American Express SimplyCash - No annual fee and 5% back is rebated as a statement credit (2 cycles after your purchase).  Also get 5% back on mobile phone bills.
• Chase Ink Bold - $95 annual fee (waived for the first year and more than offset if you can spend $10,000 to earn 50,000 Ultimate rewards points).  This can be a better value, because you get 5 points per dollar at office supply stores, which you can redeem for airline tickets worth 10 cents per dollar or more.  Also get 5% back on mobile phone bills, internet services, and cable bills.