Can You Buy Things Online With a Gift Card?
Master using gift cards for online purchases. This guide clarifies different card functionalities, provides clear steps, and helps resolve common transaction problems.
Gift cards offer a convenient way to make purchases, and in many cases, they can indeed be used for online shopping. The ability to use a gift card for an online transaction largely depends on the type of card you possess. This guide explores these distinctions, details steps for online use, and provides solutions for common issues.
Understanding Different Gift Card Types
Gift cards are broadly categorized into two main types: open-loop and closed-loop. Open-loop gift cards are general-purpose cards issued by financial institutions and branded by major payment networks such as Visa, Mastercard, American Express, or Discover. These cards function similarly to debit or credit cards and are accepted anywhere their respective network is supported online. To use them effectively for online transactions, it is often necessary to register the card and/or link a billing address or zip code to it.
In contrast, closed-loop gift cards are specific to a single store or a limited group of affiliated merchants. They can only be redeemed at that merchant’s website or physical stores. While less versatile than open-loop cards, they can sometimes offer store-specific discounts or promotions.
Steps to Use a Gift Card for Online Purchases
Using a gift card for online purchases involves a slightly different process depending on whether it is an open-loop or closed-loop card. For open-loop cards, like those bearing a Visa or Mastercard logo, you typically select “credit card” or “debit card” as the payment method during online checkout. You will then enter the 16-digit card number, the expiration date, and the three-digit Card Verification Value (CVV) code, usually found on the back of the card. A crucial step for these cards is providing a billing address that matches the one associated with the card’s registration. If the card was not registered to a specific name, you can often use your home address as the billing address.
If your purchase exceeds the gift card’s balance, many online merchants allow for splitting payments between the gift card and another payment method, such as a credit card. For closed-loop cards, look for a specific “gift card” or “apply gift card” option during the checkout process. You will enter the gift card number and a Personal Identification Number (PIN) if one is provided on the card. The balance of the closed-loop card is usually applied directly to your order total, and any remaining balance can then be paid using an alternative method.
Addressing Common Issues
Gift cards can sometimes be declined during online transactions. One frequent issue is an insufficient balance, so it is important to check the gift card’s available funds before attempting a purchase. This can typically be done online through the issuer’s website or by calling a toll-free number found on the back of the card.
Another common problem arises if the gift card has not been activated. Many cards require activation, either online or via phone, before they can be used for purchases. Incorrectly entering the card number, expiration date, or CVV/PIN can also lead to a decline, so double-checking these details is always a good practice. For open-loop cards, a mismatch between the billing address entered and the address registered with the card can cause a transaction to fail. Some gift cards may also have geographic restrictions, limiting their use to within the United States, or specific merchants might not accept certain types of prepaid cards. If issues persist, contacting the gift card issuer’s customer service, usually found on the back of the card, is the recommended next step.