What You Need To Know About Buying Gift Cards With A Credit Card
You can buy gift cards almost anywhere today. This includes grocery stores, convenience stores, drugstores and gas stations. All the major retailers offer gift cards, as do many of the warehouse clubs. Before you head to the stores, though, there are a couple of things you need to know.
First, you might be asked to present your ID. This is to fight credit card fraud. Stolen credit cards are often used to buy gift cards, because this makes it easier to steal money from the credit card.
Second, different stores have different credit card policies when you use a credit card to buy gift cards. Some chains may ban certain cards across all their stores, while single stores may also have a credit card ban imposed if they are in an area where credit card fraud is high.
Not all store staff are up to date on current policy, either. So, you could be unlucky and be refused because the clerk serving you is working to the wrong rules.
Your credit card issuer could also cause you aggravation. Again, in the battle against credit card fraud the issuer might request that you confirm your purchase on your mobile device. This could mean canceling the transaction and trying again.
To ensure these potential issues dont become annoying problems, you should:
- Check ahead to make sure that your credit card will be accepted as payment for gift cards at the cash register
- Always carry photographic ID with you
- Carry a second card in case your first is rejected because of a fraud check
Dont Risk Your Account For Extra Points
If the card issuer believes that youre gaming the system, it can close all your accounts and blacklist you from ever opening another account with them in the future.
So whats considered gaming the system and whats not? Thats all up to the discretion of the card issuer, but here are two examples to illustrate the difference:
- Jim shops at Whole Foods anyway, so he picks up a $100 gift card twice a month at an office supply store, where his card earns five points per $1. This is a savvy way to earn 1,000 points, and its unlikely to set off any alarm bells with his card issuer.
The bottom line is that a gift card purchase here and there wont be an issue, and it can help you score some extra points. Its when consumers manufacture large amounts of spending that card issuers take notice and potentially decide to get rid of those clients.
For that reason, you should stick to buying gift cards that you plan to use. The last thing you want is to lose your credit card just because the card issuer believes you were gaming its rewards program.
What Gift Cards Can You Buy With Credit Card
you can buy gift cardsGiftCardsyou canbuy gift cardsgift cardsCash storecashSell Us Your Gift Cards
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They Offer Convenience But Can Come With Hidden Fees And End In Wasted Funds
Almost all retailers offer consumers gift cards as a way to shop or give money to friends, both in the online and brick-and-mortar variety. There are two types of gift cardsphysical and digital and each comes with a wide range of features and benefits. If youre interested in purchasing gift cards for others during the holiday season, or you want to buy them for yourself, it helps to understand how they compare with other payment methods.
Can I Buy Gift Cards With A Credit Card
Yes, you can use a credit card to buy gift cards at most retailers. Occasionally, this wont be allowed for a variety of possible reasons for example, store-specific policies or a flagged transaction from your card issuer.
Buying gift cards with your credit card is usually coded as a purchase rather than a cash advance, though there may be exceptions.
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Redeem Rewards For Gift Cards
If you dont have a cash-back credit card, another option is to redeem the points or miles youve accrued for a gift card.When you redeem your points/miles for a gift card, you typically receive a 1:1 value, which means one point/mile is worth a penny. This is a standard redemption rate and can help you get gift cards without charging anything new to your card.
You should also look out for gift card redemption promotions. Chase is the main issuer that offers Chase Ultimate Rewards® cardholders 10% off a variety of gift cards, currently including Grubhub and Subway. Some eligible cards include the Chase Freedom Flex, Chase Freedom Unlimited® and Chase Sapphire Preferred® Card. Through these promotions, a $25 gift card that would typically cost 2,500 points, would only cost 2,250 points.
Where Can I Buy Gift Cards
In addition to buying gift cards at their specific stores , you can buy many different store and generic gift cards at:
- Grocery stores and supermarkets
- Online gift card websites like GiftCards.com
There are many online gift card sites, so just make sure you do your homework and use a legitimate company to buy yours.
Warehouse clubs like Costco sometimes offer gift card deals for select stores and restaurants, providing extra value for what you spend. For example, you can often get $100 worth of gift cards for $79.99. You can buy them online or at physical Costco stores .
Additionally, there are sites like Cardpool.com where you can buy and sell unused gift cards. Youll usually get a deal on gift cards when buying. You wont make the full value when selling, but if youre not going to use a card you can at least get something for it.
Did you know? Consumers spend more than $130 billion on gift cards per year, according to advisory company CEB TowerGroup, but roughly $1 billion of that goes unspent.
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Why Should I Use Gift Cards
The most obvious reason to buy gift cards is to use them as a gift to a friend or loved one, but there are also reasons why buying gift cards for yourself might be a good idea.
Gift cards operate like cash at most retailers, so using the gift cards themselves wont earn rewards. So, you might be asking why I would suggest purchasing them to use. Wouldnt it be better to use a rewards credit card for your retail purchase to earn rewards?
Unfortunately, a lot of retailers dont fall into common bonus categories, which means youd likely only end up with 1% or 1x on those purchases. But gift cards can be bought at locations that do earn rewards. If you buy a gift card to Nordstroms or Bass Pro Shop at Staples with your Ink Business Cash, thats 5%/5x earned on those purchases instead of the 1%/1x you would earn otherwise.
Chase Freedom Unlimited: Best For Drugstores
The Chase Freedom Unlimited starts you off with a $200 cash bonus when you spend $500 within three months of account opening. You also earn at least 1.5 percent back on all purchases, 5 percent back on travel booked through Chase Ultimate Rewards, 5 percent back on Lyft purchases , 3 percent back on dining and drugstore purchases and 1 percent back on other purchases. No annual fee applies.
Why this card is ideal for gift cards: The Chase Freedom Unlimited lets you earn 3 percent back when you buy gift cards from drugstores.
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You May Not Receive Credit Card Rewards For Your Purchase
No matter what type of credit card you’re purchasing, be aware that your credit card provider might not issue rewards points for gift card purchases. Either way, make sure you read up on your institution’s policy so you know what to expect.
And finally, something to bear in mind for any credit card purchase, is that no matter how great the rewards, it’s not a good idea to overextend yourself. Regardless of how quickly you’re planning to pay it off, you should avoid using more than 30% of available your available credit doing so can negatively affect your credit score, which can have long-term effects.
Just like with any other credit card purchases, make sure you spend within your means and pay off your balance in full whenever possible, so that interest doesn’t start piling up.
Gift Cards: The Rules And Fine Print
Prior to purchasing a gift card, the U.S. Department of the Treasury recommends that you read the product disclosures to understand the important terms and conditions of the account.
Some key items it suggests considering include:
- Any fees that apply during or after the sale that reduce the value of the card
- What to do if the card is lost or stolen
- What to do if there are problems with the card
- Where the card can be used
- How to claim any unused portion of the card
To protect consumers, U.S. regulations require that all fees be disclosed on the gift card itself or on its packaging. If the gift card has an expiration date, the date must be at least five years after the gift card was issued. Many states also have more stringent rules and some require that gift cards dont expire.
Its also a good idea to keep the receipt with the gift card in order to ensure the card can be used .
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Switch Games Under $20
Image: Nintendo Life
Now we’re starting to get into the beefier cards, and this one can get you some prestige indies. It’s extremely hard to whittle these down to the best-of-the-best, so we recommend going onto the eShop yourself and filtering by price to see what’s out there, because a lot of really good smaller studios price their games at around $20.
Still, we’re up for a challenge, so here’s our under-$20 guide by category:
See also: Best Nintendo Switch Party Games
But you can instead spend that $20 on a year’s Nintendo Switch Online subscription, which gives you access to a library of NES games, SNES games, and occasional week-long free trials of popular and new games, too! You’ll also be able to play free online battle royale-style games like Tetris 99 and Pac-Man 99. That’s not a bad deal, especially if you’re interested in exploring some classic retro titles.
You’re bound to find something you enjoy in there! Good luck!
About Amazon Pay Gift Card Restrictions
Disclaimer: In the event of any discrepancy or conflict, the English version will prevail over the translation.
The following restrictions apply for Gift Card purchases made on Amazon.in.
- Amazon Pay Gift Cards can’t be used to purchase other Amazon Pay Gift Cards or applied to any order containing another Amazon Pay Gift Card.
- You’ll need to provide a credit card, debit card, or net banking to pay for the order if you have gift cards in your Shopping Cart. Amazon Pay Gift Cards cannot be purchased using international Master/Visa credit or debit cards.
- Amazon Pay Gift Cards can’t be transferred from one account to another once the claim code has been added. Please read our for a full list of rules and restrictions
- The Gift Cards can only be added and used on Amazon.in and not on any of our partner sites including Junglee.com
- Gift Cards can be used to purchase Kindle eBooks.
- Gift Cards cannot be used to purchase any other type of digital content, such as apps.
- Gift Cards expire one year from the date of purchase. Any unused funds also expire along with the card and cannot be claimed again. Scheduled email Gift Card will expire 15 months from the date of purchase of the gift card.
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How To Buy A Gift Card
5 minute read
Whether you like shopping in store or prefer to do everything online, there are so many ways to buy gift cards.
From preloaded cards for big name brands to open loop gift cards you can load with as much or as little money as you like, gift cards are a great way to treat someone special or manage your own budget. Want to know how to buy a gift card? Heres our easy-to-understand guide.
Making A Purchase With Your Visa Gift Card
- What if I change my mind and want to cancel a purchase?
If a merchant cancels a purchase transaction for you, it may take three to seven business days for the cancellation to show up on your Visa Gift card record and for the funds to be credited to your card and available for use. Check the balance on your card, either online or by phone, to see when your cancelled purchase transaction has been processed. Refer to the back of your card for the web site address/phone number of the financial institution that issued your card.
- Why was my Visa Gift card declined?
- Your card may have expired. Check the expiry date printed on the front of your card. In this case, let the merchant know how much remaining balance you have on your card. The merchant may split the transaction and allow you to pay for part of your purchase with the Gift card, and then the remaining part of your purchase with another form of payment, such as a credit, debit or cash.
- Your remaining card balance may be less than the value of the item you wish to purchase.
- Merchants who only possess a manual imprint machine cannot accept Gift cards which have the phrase “ELECTRONIC USE ONLY” printed on the front of the card.
- Some internet merchants use fraud protection software that may decline a Gift card purchase transaction.
- Your card may not be activated or registered yet. Follow the activation and registration instructions that came with the card, or contact the card issuer
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How Can You Get Cash From Your Visa Gift Card
Although you can pay your bills or purchase items using your Visa Gift Card, you cannot get cash from it. You can get money back if you have the Visa Prepaid Card .
Can you buy something with a Visa Gift Card and return it for cash at Walmart? No, you also cannot use a Visa Gift Card to buy things and then return them for cash at Walmart.
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Should I Use Rewards To Buy Gift Cards
Many credit cards allow you to redeem your rewards for gift cards, but it is rarely a good idea. When redeeming points or miles, you want to make sure that youre getting a solid redemption value from each point/mile, and gift cards rarely give you the best value for your rewards.
When it comes to transferable currencies like Amex Membership Rewards or Chase Ultimate Rewards, youre typically only getting between .7 cents to 1.1 cents of value from each point. Considering you can redeem Chase points at up to 1.5 cents each through the Chase travel portal or potentially at a much higher rate when you transfer to an airline partner, it doesnt make sense to use your Ultimate Rewards balance to stock up on gift cards. Amex points are also easily worth more than 1.1 cents each when you maximize transfer partner redemption options.
Can You Earn Credit Card Points From Gift Card Purchases
by Lyle Daly | Updated July 21, 2021 – First published on Sept. 20, 2019
Many or all of the products here are from our partners that pay us a commission. Its how we make money. But our editorial integrity ensures our experts opinions arent influenced by compensation. Terms may apply to offers listed on this page.
Gift card purchases could be a great way to score extra rewards points, but it depends on your credit card.
Everyone who has a rewards credit card wants to maximize what they earn back. For those who think a little outside the box, this can lead to the idea of buying gift cards to earn more rewards.
The logic behind this strategy is that many earn a higher bonus rate at specific types of stores, so you could buy a gift card at a store where youll earn bonus rewards, and then use the card elsewhere.
Lets say you have a card that earns five points per $1 at office supply stores and only one point per $1 at grocery stores. You could use that card for a $100 purchase at the supermarket and earn 100 points. Or, you could buy a $100 supermarket gift card for yourself at an office supply store and earn 500 points.
It seems like a smart way to earn more points. The only question is whether it works.
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