At a Glance
Gift cards have become popular for gifting occasions, offering recipients the freedom to choose their presents. But the question is, can you purchase gift cards using a credit card? In this article, we will look at ways to buy gift cards with a credit card, discuss the types of gift cards available, highlight the reasons why using a credit card for gift card purchases can be advantageous, provide essential considerations before making a purchase, and list some credit cards that are ideal for buying gift cards.
In this article, you’ll learn:
Is the total value of unused gift cards in the U.S.
How can you use a credit card to buy a gift card?
1. Buy a gift card online using a credit card
One of the simplest ways to purchase a gift card with a credit card is through online platforms. Numerous retailers and websites offer the option to buy gift cards online, allowing you to complete the transaction using your credit card. These online purchases are convenient and usually require providing the necessary card details during the checkout process.
2. Redeem rewards from your credit card for gift cards
Another method to acquire a gift card with a credit card is by redeeming rewards or points. Some credit card issuers have reward programs that allow cardholders to exchange accumulated points for gift cards. This presents an excellent opportunity to turn your credit card rewards into meaningful gifts.
3. Convert reward points
Certain credit cards enable users to directly convert their reward points into gift cards. This option may vary depending on the credit card issuer and the available gift card options. Checking with your credit card provider or browsing their rewards program portal will provide more information on this conversion process.
Types of gift cards
1. Retail or store gift card
Retail or store gift cards are specific to particular businesses or brands. These gift cards can typically be used in the designated store or online platform associated with the retailer. Retail gift cards are often popular, allowing recipients to select items from their preferred stores.
2. Generic gift card
Generic gift cards, such as Visa or Mastercard, offer more flexibility. These cards function like prepaid debit cards and can be used at various establishments that accept the respective payment network. Generic gift cards are versatile options and allow the recipient to choose from a wide range of locations to use their gift card.
3. Virtual gift card
Virtual gift cards have gained popularity due to their convenience and immediate accessibility. These cards are usually delivered via email or SMS and can be used for online purchases. Virtual gift cards eliminate the need for physical cards and allow for easy sharing or last-minute gifting.
Reasons why you should buy gift cards with credit card
1. Earn points
Using a credit card to purchase gift cards can be advantageous if you have a rewards program associated with your card. By making gift card purchases, you can earn reward points, cashback, or other benefits your credit card issuer offers. It’s an excellent way to maximize your rewards while buying presents.
2. Expand bonus
Some credit cards provide bonus rewards or higher cashback percentages for purchases made within specific categories. If the retailer selling the gift card falls under these bonus categories, using your credit card can help you earn more rewards than cash or a debit card.
3. Anticipated spendings
If you anticipate future purchases from a particular retailer, buying a gift card with your credit card can be smart. It allows you to take advantage of any ongoing promotions, discounts, or rewards associated with your credit card. Furthermore, it helps you budget and allocate funds specifically for that retailer.
4. Offer benefits
Certain credit cards offer additional benefits or protections for purchases made with them. These benefits include extended warranty protection, purchase protection against damage or theft, or price protection. By buying a gift card with your credit card, you extend these benefits to the recipient.
What should you know before purchasing a gift card with a credit card?
Before buying a gift card with your credit card, there are a few crucial considerations to keep in mind:
- Fees: Some retailers or issuers may charge fees for purchasing gift cards with credit cards. You must be aware of these fees and factor them into your decision-making process.
- Credit card terms: Familiarize yourself with your credit card’s terms and conditions, particularly regarding cash advances. Purchasing a gift card could potentially be treated as a cash advance, resulting in higher fees and interest rates.
- Expiration dates and restrictions: Gift cards often come with expiration dates or certain limits, such as limitations on use or specific locations where they can be redeemed. Ensure you understand these conditions before making a purchase.
Should you purchase a gift card with a credit card?
Whether or not to purchase gift cards with a credit card depends on your circumstances and preferences. Using a credit card can be advantageous if you have a rewards program, anticipate future spending, or want to extend benefits to the recipient. However, be sure to consider fees, terms, and restrictions.
Different credit cards to use to buy a gift card
Here are a few credit cards known for their benefits when purchasing gift cards:
1. Blue Cash Preferred American Express
This card offers generous cashback rewards on purchases made at supermarkets and select U.S. department stores, making it ideal for buying gift cards.
Learn more: Blue Cash Preferred Card Review
2. Capital One SavorOne Cash Reward Credit Card
This card provides excellent cashback rewards on dining, entertainment, and grocery store purchases, making it a suitable choice for gift card purchases in these categories.
3. Citi Custom Cash Card
With this card, you can earn cashback rewards on every purchase, including gift card purchases. The card automatically provides the highest cashback rate for your top eligible spending category.
You can usually use a credit card to purchase a $500 gift card. However, it’s essential to check the specific retailer’s policies and any potential restrictions or fees associated with the purchase.
Some retailers or establishments may have policies prohibiting the use of credit cards to purchase gift cards due to fraud concerns or to prevent customers from accumulating credit card debt through gift card purchases. It’s best to check with the retailer or refer to their terms and conditions.
Yes, Visa gift cards can typically be purchased with a credit card. However, some retailers may have restrictions or charge fees for using a credit card to buy a Visa gift card. It’s advisable to verify the policies of the specific retailer or issuer.
Yes, you can buy gift cards at Walmart using a credit card. For gift card purchases, Walmart accepts various payment methods, including credit cards. However, it’s advisable to confirm with the specific store location or refer to their payment policies.
In most cases, purchasing a gift card with a credit card does not count as a cash advance. However, reviewing your credit card’s terms and conditions is crucial to understand how gift card purchases are classified and if they incur any additional fees or higher interest rates.