Can You Order Stuff Online With a Gift Card?

Using gift cards for online purchases is a common and straightforward process, similar to using a debit or credit card. This guide clarifies different gift card types, necessary preparation steps, the online purchasing process, and what happens with returns and refunds.

Understanding Gift Card Types for Online Use

Gift cards typically fall into two main categories: store-specific (closed-loop) and network-branded (open-loop). Store-specific gift cards are issued by particular retailers and can only be used to purchase goods or services from that specific merchant, either in their physical stores or on their website.

Network-branded gift cards, such as those from Visa, Mastercard, or American Express, function more like prepaid debit cards. These cards are generally accepted anywhere the respective card network’s credit or debit cards are processed. This broad acceptance makes them highly versatile for online shopping across various platforms and retailers.

Preparing Your Gift Card for Online Shopping

Some gift cards, particularly network-branded ones, may require activation before use. This process typically involves calling a toll-free number or visiting the card issuer’s website, with details usually found on the back of the card or its packaging.

It is also important to know the exact balance remaining on the gift card to avoid transaction declines. Most gift card issuers provide a method to check the balance online through their website or via a customer service phone number. For network-branded gift cards, registering a billing address with the card issuer is a crucial step for online use. This registration links a physical address, often just a zip code, to the card, which is then used for address verification during online checkout.

Making Online Purchases with Gift Cards

Using a gift card for online purchases involves specific steps at checkout. For store-specific gift cards, there is typically a designated field during checkout to enter the gift card number and a PIN, if applicable. Network-branded gift cards, however, are usually processed by selecting the “credit or debit card” option. You would then enter the 16-digit card number, expiration date, and the security code (CVV) found on the back of the card.

When using a network-branded card, it is essential to provide the billing address that was registered with the card issuer. If the gift card balance is insufficient to cover the entire purchase, many online retailers allow combining payment methods. You can often use the gift card for its available balance and then pay the remainder with a credit card, debit card, or another accepted payment method. It is advisable to apply any discount codes or promotions before applying the gift card balance to maximize savings.

What Happens with Returns and Refunds

When an item bought with a gift card is returned, the refund is typically issued back to the original gift card or as store credit. Retailers generally do not issue cash refunds or credit to a different payment method for gift card purchases.

It is advisable to retain the physical or digital gift card, even after its balance has been used, until the return period for any purchased items has passed. This ensures that if a return is necessary, the funds can be credited back to the original card. If multiple payment methods were used for the initial purchase, such as a gift card and a credit card, the refund may be split, with the gift card portion returned to the gift card and the remaining amount credited to the other payment method.