Can I Buy a Gift Card With Zip?

It is generally possible to purchase gift cards using Zip, a buy now, pay later (BNPL) service, but the methods and applicable terms can vary. Zip allows consumers to split purchases into manageable installments over time, typically four payments over six weeks, providing an alternative to paying the full amount upfront. This financial tool can be used for various retail transactions, but its application to gift card purchases has specific considerations.

Purchasing Gift Cards Using Zip

The primary method for acquiring gift cards with Zip involves directly utilizing the Zip application. To initiate a gift card purchase through the app, users typically navigate to the ‘Pay’ tab and locate the ‘Buy a Gift Card’ tile. Alternatively, a search function within the app’s ‘shop’ tile can help locate gift card options.

After selecting the desired gift card and its value, the user proceeds to checkout with Zip, choosing the specific Zip account for payment. These transactions usually involve digital gift cards, which can be purchased for personal use or sent directly to a recipient via email. Some gift cards may require up to two hours for activation before they can be redeemed. This direct in-app process or through specific partners like Giftcards.com allows for the purchase of various brand gift cards using Zip’s installment plans.

Key Details for Zip Gift Card Purchases

Purchasing gift cards with Zip comes with specific terms and potential limitations. A significant point to recognize is that Zip’s agreements with payment processing partners, such as Stripe, explicitly state that Zip generally cannot be used for the payment of gift cards, gift vouchers, or prepaid stored value cards in the United States. This means that while Zip’s own platform may offer gift cards for sale, attempting to buy a gift card at a general retailer using a Zip virtual card could be against their terms and result in a declined transaction.

Regarding fees, Zip Pay accounts typically require a minimum monthly repayment, which can be around $40 or $80 depending on the credit limit. A monthly account fee, such as $9.95, may be applied if the full statement closing balance is not paid by the due date. Additionally, some purchases made with Zip might incur installment fees, which are added to the total repayment amount. For instance, a $180 purchase could include a $5 installment fee, spread across the four payments.

Payment schedules for Zip purchases typically involve four equal payments spread over six weeks, with the first installment due at the time of purchase. Users can manage their repayment schedules within the Zip app, with options for weekly, fortnightly, or monthly payments. If a payment is missed, late fees may apply. It is important to note that gift cards purchased through Zip are generally non-refundable and cannot be returned or exchanged once acquired. In cases where a refund is processed for other types of purchases, the refund amount is credited back to the Zip account, not directly to the consumer’s bank account, and any fees incurred are typically not refunded.