Gift cards are one of the most convenient presents and payment tools available today. Whether you’re buying one for a friend or just for your own use, they offer flexibility. But a common question that comes up is, can you buy gift cards with a credit card? It seems simple, but the answer depends on where you’re shopping, what kind of credit card you have, and the policies in place.
In this blog, we’ll explore all the aspects of using a credit card to purchase gift cards, including restrictions, benefits, risks, and tips. This guide will help you understand the rules and make informed choices when you’re standing at the checkout line or browsing online.
What Happens When You Try to Buy Gift Cards With a Credit Card?
When you use a credit card to buy a gift card, the transaction works like any other purchase. The amount is charged to your card, and it appears on your monthly statement. However, some credit card companies or stores may treat it differently.
At some retailers, these transactions are flagged as cash advances, which come with higher interest rates and fees. This can surprise buyers who expect a regular purchase and end up paying extra.
So, can you buy gift cards with a credit card without extra costs? In most cases, yes but only if your credit card provider doesn’t treat it as a cash advance and if the retailer allows it.
Where Can You Buy Gift Cards With a Credit Card?
You can typically purchase gift cards at most grocery stores, gas stations, pharmacies, big-box retailers, and online marketplaces. However, the rules may vary between locations. For example, stores like Walmart and Target usually allow it, but some grocery stores may block credit card payments for third-party gift cards.
Here’s a breakdown of popular store types and how they usually handle credit card purchases for gift cards:
| Store Type | Allows Credit Cards for Gift Cards? | Cash Advance Risk |
| Grocery Stores | Sometimes (depends on chain) | Medium |
| Gas Stations | Yes (usually for store-branded cards) | Low |
| Big-Box Retailers | Yes (Walmart, Target, etc.) | Low |
| Pharmacies | Often yes, but limited brands | Medium |
| Online Retailers | Yes (Amazon, Best Buy, etc.) | Low |
Always check the store’s policy before making a purchase. Some locations will put up signs at checkout if gift cards can’t be bought with credit.
Why Do Some Stores Not Allow Credit Cards for Gift Cards?
Retailers sometimes block these transactions to prevent fraud. Scammers often use stolen credit cards to buy gift cards because they are harder to trace. Additionally, stores might want to reduce fees charged by credit card companies, especially for high-value purchases.
For the same reason, some stores may limit the amount you can spend when using a credit card for gift cards. Others might ask for ID or a manager’s approval.
So while the answer to can you buy gift cards with a credit card is generally yes, there are a few hurdles depending on the store and the card issuer.
How Do Credit Card Companies Treat These Transactions?
This is where things can get tricky. While most credit card companies treat gift card purchases like normal charges, some treat them as cash equivalents. That means they treat the gift card like cash, leading to:
- Higher interest rates (cash advance rate)
- No grace period (interest starts immediately)
- Cash advance fees (usually around 3%-5%)
Here is how different credit card companies may treat them:
| Credit Card Issuer | Treat as Purchase | Treat as Cash Advance |
| Chase | Usually purchase | Sometimes cash advance |
| Capital One | Usually purchase | Rarely cash advance |
| American Express | Purchase (most cases) | Limited cash advance |
| Discover | Purchase | Rarely flagged |
| Bank of America | Mixed (depends) | Common for large amounts |
Always check your credit card agreement or call customer service if you’re unsure how your provider handles it. It’s better to ask before you swipe.
Do You Earn Rewards for Buying Gift Cards?
Yes, you can earn rewards when using a credit card to purchase gift cards, as long as the purchase is not marked as a cash advance. Many credit cards offer points, cash back, or airline miles for purchases.
However, some issuers exclude gift cards from their rewards programs. That means even if the charge goes through as a regular transaction, you might not get any points.
To get the most out of your card, make sure you know your rewards policy. Some cards even offer bonus rewards for purchases at grocery stores or drugstores, which often sell gift cards.
Is It a Good Idea Financially?
If you’re asking, “can you buy gift cards with a credit card to earn points or save money?” the answer is yes but only under the right conditions.
It’s smart if:
- Your credit card offers rewards on purchases.
- The store treats it as a regular transaction.
- You pay your balance in full every month.
It’s risky if:
- Your credit card treats the purchase as a cash advance.
- You are close to your credit limit.
- You can’t pay the balance before interest kicks in.
Remember, gift cards are not refundable in most cases. If you get stuck with a card you can’t use, returning it may be impossible.
Common Mistakes to Avoid
While trying to take advantage of deals or rewards, many people make simple mistakes. Don’t be one of them.
- Forgetting to check if it’s a cash advance
- Buying from unauthorized sellers online
- Purchasing large amounts to flip or resell
- Ignoring expiration dates or card fees
These can all lead to losses or fraud, especially when dealing with third-party gift cards.
Frequently Asked Questions
Can you buy gift cards with a credit card online?
Yes, many online platforms like Amazon and Best Buy accept credit cards for gift card purchases. Always check if the issuer flags it as a cash advance.
Do you pay extra fees when using a credit card to buy gift cards?
Some gift cards come with an activation fee, especially prepaid Visa or Mastercard cards. Credit card fees depend on your provider.
Can I earn cashback or points when buying gift cards?
Yes, if your issuer counts it as a purchase and doesn’t exclude gift cards from the rewards program.
Are there any spending limits when buying gift cards with credit cards?
Yes, some stores impose daily or per-transaction limits for gift card purchases with a credit card to prevent fraud.
What’s the safest way to buy a gift card using a credit card?
Buy from reputable stores, avoid third-party websites, and make sure your issuer treats it as a purchase not a cash advance.
Conclusion
So, can you buy gift cards with a credit card safely and smartly? The short answer is yes but you must know the rules. Retailer policies, credit card issuer terms, and potential fees all play a role in whether or not it’s a good deal.
If your credit card offers rewards and treats gift cards as regular purchases, it can be a smart way to earn points or plan gifts. But if the transaction is flagged as a cash advance, the fees and interest can make it a bad financial decision.
Always do your homework, check your card policy, and stay informed. That way, you can shop smarter and make the most of every purchase including gift cards.
