Yes, you can buy gift cards with a credit card at some retailers but others might not accept credit cards. For example, you can buy gift cards with a credit card at Walmart, Target, Amazon.com, etc. but you won’t be able to buy gift cards with a credit card at Giant or Harris Teeter. Many stores don’t accept credit cards because buying gift cards with stolen credit cards is a common practice and store owners want to avoid fraudulent activities. Moreover, in many cases, if you buy gift cards with credit cards then you could run into an issue buying a store-issued gift card!
- When you buy a gift card with a credit card, many store owners might ask you to show some form of identification
- In some case, credit card issuing company declines gift card payments to protect you from fraud
- You can use your credit card to buy gift cards from Staples.com, Walmart.com, and Target.com
- Blue Cash Preferred® Card From American Express offers 6 percent cash back on up to $6,000 spent at U.S. supermarkets per year
Can You Buy Gift Cards With A Credit Card?
In most cases, you can buy gift cards with a credit card. However, there are some occasions when you might run into a bit of trouble. You should understand that a gift card works like a debit card. There are some differences between credit cards, debit cards, and gift cards. A debit card works like liquid cash whereas a credit card you can spend money before you have it. So, the main difference between a debit card and a gift card is the balance. Once you have exhausted the funds, the gift card has no more value.
Some retailers allow store-based gift cards to be purchased with credit cards, but others have their own restrictions. While buying gift cards with a credit card, many store owners might ask you to show some form of identification to make sure the name on your ID matches the one on your credit card. On the other hand, open-loop gift cards can be purchased with a credit card. In some cases, credit card issuers might refuse the payment as a suspicious transaction to protect you from fraud. If it happens to you then you should contact the card issuer company about this problem.
How To Buy Gift Cards With A Credit Card
Buying a gift card in person means you will simply bring the gift card to the register and choose credit as payment. The process is the same when you are buying gift cards online with a credit card. For example, if you want to buy an Amazon.com gift card then you have to visit the official website of Amazon and select whether you want a gift card mailed to you or you can also print at home or a gift card via email. From there, you can add the gift card to your online cart and proceed to the payment page as normal. You can also use the same method to buy gift cards from Staples.com, Walmart.com, and Target.com.
Should You Purchase Gift Cards With A Credit Card?
There is nothing wrong with paying for gift cards with a credit card but you should know that buying gift cards with credit cards has some pros and cons. If you buy gift cards using a credit card then there is potential for rewards on your spending. Although, how much you will earn depends on the cashback credit card or rewards credit card you have. Moreover, if you use a credit card then you might be able to buy gift cards at a discount and save money on a large purchase. Moreover, buying gift cards from small businesses can also help businesses recover from the economic impact of COVID-19. You can buy the gift cards now and wait to redeem your gift card for goods or services at a later date.
On the other hand, some retailers limit how many gift cards you can buy with a credit card. Moreover, some rewards credit cards have a restriction that you won’t earn any cashback or points if you make the payment with a credit card. For example, the terms and conditions of the Amex EveryDay® Credit Card from American Express includes –
“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.”
List Of Best Credit Cards To Buy Gift Cards
Blue Cash Preferred® Card From American Express
This gift card lets you earn 6 percent back on up to $6,000 spent at U.S. supermarkets per year. Moreover, you can earn a $300 statement credit after you spend $3,000 in purchases on your new Card within the first six months. If you buy gift cards with this gift card then you will earn 6 percent back up to annual limits. You will also earn 3 percent back on gift cards purchased from U.S. gas stations.
Chase Freedom Unlimited
This credit card starts you off with a $200 cash bonus if you spend $500 within three months of account opening. Moreover, you will earn at least 1.5 percent back on all purchases, 5 percent back on travel booked, 5 percent back on Lyft purchases, etc. If you buy gift cards from drugstores with Chase Freedom Unlimited then you will get 3 percent back.
Ink Business Cash® Credit Card
With this credit card, you will get 5 percent back on up to $25,000 spent in combined purchases at office supply stores or on the internet, cable, etc. Moreover, you will get 2 percent cash back on the first $25,000 spent each year at gas stations and restaurants. You can also earn $750 in bonus cashback when you sign up and spend $7,500 within three months of account opening. If you use the Ink Business Cash® Credit Card to buy gift cards at office supply stores then you will get 5 percent back on up to $25,000 spent each account anniversary year.
Costco Anywhere Visa® Card by Citi
This card doesn’t charge an annual fee when you have a Costco membership ($60), you will also earn 4 percent back on the first $7,000 you spend at eligible gas stations each year! In addition, you will get, 3 percent back on restaurants and eligible travel purchases, 2 percent back at Costco and on Costco.com, and 1 percent back on other purchases. If you buy gift cards at gas stations then Costco Anywhere Visa® Card by Citi will allow you to earn 4 percent back up to annual limits.
This card is only available for purchases made at Target, so its use is limited. However, this card doesn’t have any annual fees which is a great thing. With this card, you will get 5 percent off everything you buy at Target and Target.com. This card also lets you save 5 percent off specialty gift cards for travel, restaurants, subscription services, etc.
FAQs About Can You Buy A Gift Card With A Credit Card
Where Can I Buy Gift Cards?
You can buy gift cards both online and offline. You can buy gift cards from various stores like –
1. Grocery stores and supermarkets
2. Superstores and warehouse clubs
3. Convenience stores
4. Gas stations
Moreover, some popular retailers for gift cards are –
5. GiftCards.com, etc.
What Type Of Gift Card Should I Buy?
According to experts, you should buy gift cards without any fees associated with them. So, store gift cards are the best option when it comes to gift cards.
What Are The Types Of Gift Cards?
There are two main types of gift cards. They are –
1. Retail or store-specific gift cards
2. Generic gift cards
Some common examples of Generic Gift Cards are –
3. American Express gift cards (personal and business versions)
4. Discover gift cards
5. Vanilla Visa gift cards
6. Vanilla Mastercard gift cards
7. Vanilla Discover gift cards
Can You Buy A Gift Card With A Debit Card?
Yes, you can buy a gift card with a debit card. You can use a debit card to buy gift cards both online and offline. Just make sure you have your debit card on hand when you’re purchasing the gift card.
When I Buy A Gift Card With A Credit Card, Is This A Cash Advance?
Usually, buying a gift card with a credit card is not considered a cash advance. However, it might be considered a cash advance in situations when –
1. You buy a prepaid card
2. You buy a gift card at a financial institution
Last Updated on October 31, 2022 by Magalie D.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.