Can I Buy Gift Cards With Affirm?

Affirm is a financial service that allows consumers to purchase items and pay for them over time through installment plans. This “buy now, pay later” (BNPL) model provides flexibility for many retail goods and services, helping individuals manage their budgets by spreading out costs. Gift cards, whether physical or digital, represent a prepaid value that can be used for future purchases or given to others.

Understanding Affirm’s Purchase Restrictions

Affirm generally restricts the direct purchase of gift cards through its financing service. This policy applies to most types of gift cards, including general-purpose cards and those specific to certain merchants. Affirm’s terms of service typically classify gift cards as cash equivalents, which are generally excluded from eligible purchase categories. This is a common practice among BNPL providers. While some retailers might offer gift cards as part of a bundle with other tangible goods, directly financing a standalone gift card purchase with Affirm is usually not permitted.

While Affirm’s official policy generally prohibits gift card purchases, some users have reported success buying them through specific retailers or via a one-time-use virtual card generated by Affirm. Affirm itself deprecated its own gift card service as of October 15, 2024. The core intent of Affirm’s service is to finance tangible goods and services, not cash-like instruments.

Why Gift Cards Are Restricted

The restrictions on purchasing gift cards with BNPL services like Affirm stem from financial and operational considerations. Gift cards are considered highly liquid assets, meaning they can be easily converted into cash or used anonymously. This liquidity presents a higher risk of fraud and potential money laundering. Prohibiting gift card purchases helps mitigate these risks.

For instance, an individual could purchase gift cards using a BNPL service and then quickly resell them for cash, potentially defaulting on the installment payments. This poses a significant financial risk to the BNPL provider. Gift cards, due to their untraceable nature, can also be exploited in various fraud schemes, including victim-assisted fraud where individuals are coerced into buying gift cards and providing codes to scammers. The business model of BNPL services is built around financing tangible goods and services, where the value and usage can be more readily tracked and assessed, aligning with their risk management strategies.

Alternative Payment Options for Gift Cards

Since using Affirm for direct gift card purchases is generally not an option, consumers need to consider alternative payment methods. Traditional payment solutions remain widely available for acquiring gift cards, including debit cards, credit cards, or cash directly from retailers.

Consumers can also explore various digital payment platforms or online gift card marketplaces that accept traditional payment methods. Some other BNPL services, such as Klarna, Afterpay, or Zip, might offer options to purchase gift cards through their apps or with virtual cards, though terms and fees can vary. Alternatively, some cash advance applications provide funds that can then be used to purchase gift cards from any retailer, offering broader flexibility.