Can You Buy Gift Cards With A Credit Card?

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“Can I buy a gift card with a credit card?” is a common question among consumers, and you should know the answer is a resounding yes.

There are many reasons to buy gift cards with a credit card, including for convenience. If you’re buying groceries at the supermarket and planning to pay with plastic, for example, there’s no reason not to add a gift card you need for an upcoming event to your cart.

Aside from gift card purchases for occasions like birthdays or teacher gifts, some people buy gift cards with a credit card to earn rewards or save money on a specific purchase.

For example, Disney enthusiasts might buy gift cards to Disney parks when they’re on sale at Costco stores, and then use them to cover part of a trip.

How to buy gift cards with a credit card

Buying gift cards in person is a breeze, regardless of how you decide to pay. Simply bring the gift card to the register and choose credit as your form of payment.

The scene is similar when you buy a gift card online. If you want to buy an Amazon.com gift card online, for example, opt for a physical gift card that can be mailed to you, an electronic gift card you can print at home or a digital gift card you can redeem via email. From there, add the gift card to your online cart and proceed to the payment page as normal.

Can you earn credit card rewards?

Yes. A major benefit of using a credit card to pay for gift cards is rewards earned on your purchase. If you plan to give someone a $50 gift card for their birthday, for example, you could buy a gift card with a credit card and earn points or cash back on that purchase.

That said, make sure you pick the right type of rewards credit card for your gift card purchase. Some rewards credit cards earn cash back, while others offer flexible rewards or points you can use in a specific airline or hotel program.

You can also look for cards that offer bonus rewards in specific categories that can include gift card purchases. For example, the Blue Cash Preferred® Card from American Express is a stellar option for buying gift cards at U.S. supermarkets since it earns:

• 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
• 6% Cash Back on select U.S. streaming subscriptions.
• 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
• 1% Cash Back on other purchases.

Meanwhile, the Chase Freedom Unlimited® is another solid option if you buy gift cards at drugstores, as it earns:

• Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more.
• 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service.
• 1.5% cash back on all other purchases.

If you have a small business, or you’re an entrepreneur, you can also consider using a business rewards card to make strategic gift cards purchases. The Ink Business Cash® Credit Card is popular for buying gift cards at stores like Staples and Office Depot, as you can:

• Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
• Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
• Earn 1% cash back on all other card purchases with no limit to the amount you can earn

Why should you purchase gift cards with a credit card?

Benefits include:

• Convenience: Buying gift cards with a credit card may just be a matter of convenience, and that’s perfectly okay. If you’re purchasing other items and you plan to pay with credit, you might as well charge your gift card purchase along with everything else.
• Potential to earn rewards: You may be able to earn cash back or travel points for gift card purchases, although how much you’ll earn depends on the cash back credit card or rewards credit card you have.
• Potential to save money: Gift cards can go on sale, meaning you can buy a card that’s worth, say, $50 and not actually spend $50 on it. You can then use these discounted gift cards to save money on large purchases down the line.

Why you might not want to purchase gift cards with a credit card

There’s nothing wrong with paying for gift cards with a credit card, but you should know about potential pitfalls that can apply. Those pitfalls can include:

• Gift card limits: Some retailers limit the number of gift cards you can buy when you pay with a credit card. If you’re unaware of these policies, and you head to the register with a stack of gift cards in hand, you may not be able to buy them all.
• Threats about not earning rewards: Some rewards credit cards also claim in the fine print that you won’t earn any cash back or points. With certain American Express cards, for example, the terms and conditions state you earn rewards on “eligible purchases,” which does not include “fees or interest charges, cash advances, purchases of traveler’s checks, purchases or reloading of prepaid cards, purchases of gift cards, person-to-person payments or purchases of any cash equivalents.” But even cards that have this in the fine print will sometimes still earn points on these purchases, so the issuer’s rules can be unclear.
• Costly credit card interest: Finally, you shouldn’t buy gift cards with a credit card if you plan to carry a balance. If you do, the interest rates you’ll pay will wipe out any rewards you earned.

Does purchasing a gift card count as a cash advance?

Some credit cards threaten to treat gift card purchases as a cash advance. In this case, you could be charged a cash advance fee and a higher interest rate as well.

Generally speaking, gift cards code as a cash advance when you buy them directly from a financial institution or when you buy a prepaid card instead of a gift card. However, you can typically get around this by buying gift cards during your normal shopping, such as in your weekly grocery haul at the supermarket.

You can also typically avoid surprise cash advance fees by asking retailers if their gift cards code as a cash advance or purchase before you buy.

The bottom line

You can buy gift cards with a credit card instead of cash or debit, but you should only do so with a plan. If you don’t pay your balance in full, for example, you’ll wind up paying credit card interest on your revolving balance. Not only that, but make sure any gift card purchase you’re planning won’t trigger a cash advance fee.

If you know the rules, you can earn considerable rewards when you buy gift cards with a credit card. That’s true whether you plan to use the gift cards yourself or as a gift for someone else.

Frequently asked questions about buying gift cards

• Can you purchase a Visa gift card using a credit card?
  

  Yes, you can purchase Visa gift cards with a credit card. Many supermarkets and drugstores offer reloadable Visa gift cards you can buy and fund with anywhere from $25 to $500. However, purchase fees of $2.95 to $6.95 can apply. You’ll also want to make sure your issuer won’t count the purchase as a cash advance.

• Can you buy a gift card from Walmart with a credit card?
  

  Yes, Walmart lets customers purchase gift cards with a credit card, and you can make gift card purchases in the same transaction as all your other purchases.

• Can you buy a prepaid card with a credit card?
  

  Some gas stations, supermarkets and drugstores will let you purchase a prepaid card with a credit card. However, upfront fees can apply. These can also sometimes be coded as a cash advance to your issuer, which will mean paying costly cash advance fees. It’s best to ask what the purchase will be coded as before swiping.