How Do I Pay Online With a Gift Card?

Gift cards offer a convenient and flexible payment solution for online purchases, streamlining the checkout process like traditional credit or debit cards. This guide explains how to use gift cards online, from identifying card types to troubleshooting common issues, enabling you to confidently use gift cards for your online shopping needs.

Understanding Your Gift Card Type

Gift cards generally fall into two main categories: store-specific and general-purpose. Store-specific gift cards, often called closed-loop cards, are issued by a particular retailer or brand and can only be used on that merchant’s website or physical stores. For example, a gift card from a clothing retailer can only be redeemed for items sold by that specific company.

General-purpose gift cards, known as open-loop cards, are issued by financial institutions and carry the logos of major payment networks like Visa, Mastercard, American Express, or Discover. These cards function similarly to a debit card and are accepted by most online merchants that display the corresponding network logo. This broader acceptance makes them highly versatile for various online purchases.

Regardless of the card type, checking the balance before attempting a purchase is important to avoid declined transactions. Most gift cards provide a website address or a toll-free phone number on the back or packaging for balance inquiries. Entering the card number and security code on the designated website reveals the current balance.

For general-purpose gift cards, online registration with a billing address is often necessary before they can be used for online transactions. This process links a specific address to the card for Address Verification System (AVS) checks. AVS is a security measure that compares the billing address provided during checkout with the address on file for the card. Instructions for registering your card are usually found on the card itself or its accompanying materials.

Steps to Pay Online

Once your gift card’s type is identified, its balance is confirmed, and, if it is a general-purpose card, it has been registered, you can proceed with your online purchase. Begin by adding your desired items to the shopping cart on the merchant’s website. Navigate to the checkout page to initiate the payment process.

During checkout, you will encounter the payment method selection. For store-specific gift cards, look for a clearly labeled “Gift Card” or “Redeem Gift Card” option. This field requires you to enter the gift card number and, sometimes, a PIN or security code found on the card. The system will then apply the card’s value to your purchase.

When using a general-purpose gift card, select the “Credit/Debit Card” payment option, rather than a “Gift Card” option, as it functions like a standard bank card. You will then be prompted to enter the 16-digit card number, the expiration date, and the three or four-digit security code (CVV) usually located on the back of the card. For the billing address, enter the exact address that you registered with the gift card.

Addressing Payment Issues

Despite careful preparation, online gift card payments can encounter issues. One common problem is insufficient funds, where the purchase amount exceeds the gift card’s balance. If this occurs, the transaction will be declined. In such cases, you may need to use the card for a smaller purchase or, if the merchant’s system allows, combine it with another payment method, such as a credit card, to cover the remaining balance. Many online retailers do not support splitting payments between a gift card and another form of payment.

A card may also be declined if it has not been properly activated or registered, especially for general-purpose cards that require linking to a billing address for security purposes. An Address Verification System (AVS) mismatch can also cause a decline, occurring when the billing address entered during checkout does not precisely match the address registered with the gift card. Ensuring these addresses are identical is important for successful transactions.

Merchant limitations can also present challenges. Some online retailers may not accept specific types of gift cards, or they might have policies that prevent combining multiple payment methods. Certain gift cards may also have restrictions on what can be purchased, such as not allowing cash equivalents or specific product categories. Additionally, technical glitches, such as browser errors or website issues, can interfere with the payment process. If issues persist, reviewing the gift card’s terms and conditions or contacting the card issuer’s customer support can provide further assistance.