Do Gift Cards Cover Shipping Costs?

Gift cards are a widely adopted payment method for both online and in-store purchases. A common question for consumers is whether these cards can cover additional transaction costs such as shipping fees?

Gift Cards as a Payment Method

Gift cards operate as prepaid currency with a specific monetary value. When used for a transaction, whether online or in a physical store, the card’s value is deducted from the total purchase amount. This total typically includes the cost of the items, applicable sales tax, and any associated shipping charges. The card’s balance is reduced by the full transaction total.

If the order includes shipping costs, these costs are part of the overall total that the gift card can cover. Both physical and digital gift cards usually follow this process, acting as a direct reduction of the purchase price.

Merchant Policies on Shipping Costs

While gift cards function like cash in covering transaction totals, the ultimate determination of whether shipping costs are covered rests with the individual merchant’s specific policies. Most retailers allow gift cards to be applied to the complete order value, which encompasses merchandise, taxes, and shipping. This is because the gift card simply provides a balance to be drawn down against the total amount presented at checkout.

However, some merchants might have specific exceptions or limitations outlined in their gift card terms and conditions. These instances are less common for standard retail gift cards, as the intent is for the card to be as versatile as other payment methods within that store. The key is that the gift card is a payment instrument that reduces the total amount owed, and if shipping is part of that total, the card’s value will typically be applied.

Verifying Shipping Coverage

To confirm if a gift card will cover shipping costs before finalizing a purchase, several steps can be taken. A primary method involves reviewing the merchant’s website, specifically their Frequently Asked Questions (FAQs) or Help sections. These areas often contain detailed information about payment methods, gift card usage, and shipping policies.

Additionally, examining the terms and conditions associated with the specific gift card or the retailer’s general website terms can provide clarity. These documents outline the accepted uses and any restrictions. A practical approach is to simulate a purchase by adding desired items, including shipping, to the online shopping cart and proceeding to the checkout page. During this process, entering the gift card details will typically show how the card’s value is applied to the total, including shipping, before the order is confirmed. Finally, if uncertainty remains, contacting the merchant’s customer service directly can provide definitive answers.