Can You Pay With a Gift Card Online?

Using gift cards for online purchases has become a common practice, offering a convenient way to spend pre-loaded funds. The usability of a gift card online largely depends on its specific type. Understanding these distinctions is important for a smooth transaction, and this guide explores how different kinds of gift cards can be applied to online shopping.

Understanding Gift Card Types for Online Use

Gift cards generally fall into two main categories: open-loop and closed-loop, each with distinct features that affect their online applicability. Open-loop gift cards are backed by major payment networks such as Visa, Mastercard, American Express, or Discover. These cards function similarly to traditional debit or credit cards and are accepted by most online merchants that support their respective payment network. They typically feature a 16-digit card number, an expiration date, and a three-digit security code (CVV) on the back.

In contrast, closed-loop gift cards are issued by specific retailers or a limited group of affiliated merchants. Examples include gift cards for a particular department store, coffee shop, or online marketplace. These cards are exclusively redeemable at the issuing merchant’s physical locations or their dedicated website. They usually require a gift card number and sometimes a Personal Identification Number (PIN) for redemption.

Making Online Purchases with a Gift Card

The process for using a gift card online varies based on whether it is an open-loop or closed-loop type. For network-branded, open-loop cards, the checkout procedure closely mirrors that of a credit or debit card. Shoppers should select “credit” or “debit” as the payment method, rather than a “gift card” option. The 16-digit card number, expiration date, and CVV from the back of the gift card are then entered into the payment fields. Some online retailers may require the gift card to be registered with a billing address to prevent transaction declines.

When using a closed-loop, store-specific gift card, the payment process is often more straightforward. At checkout on the merchant’s website, look for a specific “gift card” payment option. This option will prompt for the gift card number and sometimes a PIN or claim code found on the card. Once entered, the system applies the gift card’s value directly to the purchase total.

Key Considerations for Online Gift Card Transactions

It is always advisable to check the gift card’s balance before attempting a purchase to ensure sufficient funds are available. This can typically be done by visiting the card issuer’s website or calling a toll-free number printed on the back of the card.

Should the purchase total exceed the gift card’s balance, many online merchants allow for “split payments.” This feature enables a portion of the payment to be covered by the gift card, with the remaining balance paid using an alternative method, such as a credit card or another gift card. It is prudent to review the card’s terms for any expiration dates or potential fees. Some online merchants may also have specific restrictions, such as not accepting gift cards for recurring subscriptions or certain digital products, so reviewing the merchant’s terms and conditions can prevent unexpected issues.