How to Buy Gift Cards With a Credit Card

Gift cards offer flexibility for recipients to choose desired items or services. Credit cards provide a convenient method for purchases, often with various benefits. Combining these tools by using a credit card to buy gift cards is a transaction worth understanding.

Reasons to Consider Buying Gift Cards with a Credit Card

A common motivation for purchasing gift cards with a credit card is the potential to accumulate credit card rewards. Many credit cards offer points, cashback, or miles on everyday spending, and gift card purchases can contribute to these rewards. For instance, if a credit card provides bonus rewards in categories like groceries or office supply stores, purchasing gift cards at these locations could yield higher returns.

Another reason individuals might buy gift cards with a credit card involves meeting minimum spending requirements for credit card sign-up bonuses. Credit card issuers often provide substantial bonuses to new cardholders who spend a certain amount within a specified timeframe. Purchasing gift cards can help fulfill these thresholds, especially for those who anticipate future spending at specific retailers.

Using a credit card to buy gift cards can also assist with budgeting for specific purchases or making payments where a credit card might not be directly accepted. For example, if a particular vendor only accepts gift cards, purchasing one with a credit card allows for the transaction to proceed. It can also help allocate funds for future planned expenses, separating them from general spending.

Where to Purchase Gift Cards with a Credit Card

Gift cards are widely available across various retail environments, both in physical stores and online platforms, making it generally possible to purchase them using a credit card. Major retail stores, such as department stores or electronics outlets, typically offer their own branded gift cards, which can be acquired in-store or through their official websites. These retailers often allow credit card payments for these transactions.

Supermarkets and drugstores are common locations where a diverse selection of gift cards can be found. These establishments often carry gift cards for numerous brands, including dining, entertainment, and general-purpose prepaid cards like Visa or Mastercard gift cards. Customers can typically use their credit cards at the checkout for these purchases.

Beyond brick-and-mortar stores, numerous online platforms facilitate the purchase of gift cards with a credit card. Many specific brand websites offer digital or physical gift cards directly, providing a convenient online purchasing experience. Additionally, dedicated online gift card marketplaces exist, which aggregate various brands and allow for credit card payments. These online avenues can sometimes offer instant digital delivery, making them suitable for immediate gifting needs.

Navigating the Purchase Process

Purchasing a gift card with a credit card, whether in person or online, involves a straightforward process similar to any other retail transaction. For in-person purchases, individuals typically select the desired gift card from a display, often available near checkout lanes or in dedicated sections. They then present the chosen gift card along with their credit card to the cashier. The transaction is completed at the point-of-sale (POS) terminal, and a receipt is provided as proof of purchase.

When buying gift cards online, the process begins by adding the selected gift card to a virtual shopping cart on the retailer’s or marketplace’s website. Proceeding to checkout, the user will be prompted to enter their credit card details, including the card number, expiration date, and security code. A billing address, matching the credit card’s billing address, is usually required for verification purposes. After reviewing the order details, the purchase is confirmed, and an email confirmation is typically sent. For digital gift cards, the e-gift card details are often delivered via email shortly after the transaction is processed.

Key Considerations Before and After Your Purchase

Before purchasing gift cards with a credit card, it is important to understand that some credit card issuers may classify gift card purchases, especially for general-purpose prepaid cards like Visa or Mastercard gift cards, as cash advances. Cash advances often incur higher fees, typically around 2% to 5% of the transaction amount or a flat fee like $10, and interest begins accruing immediately without a grace period. Reviewing the credit card agreement or contacting the issuer directly can clarify their specific policy on gift card transactions to avoid unexpected charges.

Potential fees associated with the gift card itself also warrant attention. Many general-purpose prepaid gift cards have activation fees, which are charged at the time of purchase and typically range from $2.95 to $6.95, depending on the card’s value. Store-specific gift cards generally do not have these activation fees. Additionally, some gift cards may have dormancy fees that apply if the card is unused for an extended period, usually after one year.

Credit utilization is another factor to consider, as large gift card purchases can affect the amount of available credit being used. High credit utilization, generally considered above 30% of the credit limit, can negatively impact credit scores. It is advisable to keep credit card balances low relative to the credit limit to maintain a healthy credit profile.

While earning rewards is a common motivation, some credit card reward programs may exclude gift card purchases from earning rewards or offer reduced earning rates. Certain issuers might also have policies against using gift card purchases to meet minimum spending requirements for sign-up bonuses, potentially leading to the forfeiture of the bonus or even account issues if suspected of “gaming” the system. Understanding the specific terms of the credit card’s rewards program is important.

After purchasing, securing the gift card is important. This involves checking physical cards for any signs of tampering and keeping receipts as proof of purchase. For digital gift cards, ensuring they are sent to the correct email address and redeemed promptly can help prevent unauthorized use. Gift cards generally do not offer the same fraud protection or purchase protections as credit cards, meaning lost or stolen gift cards may not be recoverable. Keeping a record of gift card numbers and values can be helpful for tracking and in case of issues.