Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. And in many cases, using a rewards card for these kinds of purchases can make a lot of sense. Our editorial team does not receive direct compensation from our advertisers. Download our app for even faster, safer, and smarter online shopping. Make sure you read your credit cards terms and conditions for more specific information. Commissions do not affect our editors' opinions or evaluations. For example, the. No annual fee applies. Her writing has been published in newspapers, blogs and an academic journal. Can You Buy Gift Cards With a Credit Card? At Bankrate, we have a mission to demystify the credit cards industry regardless or where you are in your journey and make it one you can navigate with confidence. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. It can be an easy way to maximize your rewards but youll want to play your cards right. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC. One major benefit of using a credit card to pay for gift cards is the fact you can earn rewards on your purchase. Performance information may have changed since the time of publication. That could limit your options for buying gift cards, depending on what kind of plastic is in your wallet. All Rights Reserved. If you are targeted for an offer similar to this and use it to purchase a gift card, you can get additional cash back on your future Macys purchase, even if you dont have an immediate need. That may not sound like a big deal, but saving 5 percent off a Disney vacation that costs thousands can be worth the extra trouble. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. Looking for subscriptions, games, shopping or phone credit? Gifts on the go. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence. On the flip side, some retailers limit how many gift cards you can buyparticularly when you pay with a credit card. If someone nefarious charges a purchase to your gift card, you may have limited recourse. Many issuers exclude gift cards or cash-like transactions from earning rewards. They might even be reloadable. As a side note, buying gift cards from small businesses can also be a helpful move if you are looking for a way to help small businesses recover from the economic impact of COVID-19. offers 5% cash back in rotating quarterly categories on up to $1,500 in purchases each quarter (activation is required; 1% back on all other purchases). With that being said, you should make sure you understand the pros and cons, along with the potential pitfalls, before you do so. Just make sure you pick the right type of rewards credit card for your gift card purchases. Youll earn cash back or points on the purchase of the gift card itself, and you can then turn around and use that gift card at a different merchant. From there, you add the gift card to your online cart and proceed to the payment page as normal. While we adhere to strict editorial integrity, this post may contain references to products from our partners. How PS Plus Cards Convert to the New Subscriptions, Redeem your stash for the code of your choice. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Something went wrong. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. So with all of these reasons to use a credit card to purchase gift cards, why would you want to not buy as many gift cards as possible? Here is a list of our partners and here's how we make money. At Bankrate we strive to help you make smarter financial decisions. But a few words of caution about using a credit card to buy these kinds of products. That could limit your options for buying gift cards, depending on what kind of plastic is in your wallet. Gift cards are an easy-to-please present for just about anyone. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. We do not include the universe of companies or financial offers that may be available to you. This compensation comes from two main sources. Gas stations and grocery stores might not be big line items in your budget for any particular quarter but you could still use your credit card in those places to buy gift cards for merchants that you do visit often. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. In fact, you wont have trouble finding gift cards for sale in both those places, not to mention online and in store at merchants big and small from Target and Walmart to the corner gas station, and even on websites specializing in gift card resales. Her writing has been published in newspapers, blogs and an academic journal. At Target, for instance, the limit is five Visa, Mastercard or American Express gift cards per person in one day. If you purchase gift cards, make sure that you have a plan to keep track of and use them. Read about our cookies in our cookie policy. You should also be aware that some credit cards threaten to treat gift card purchases as a cash advance. MORE: The smartest way to use gift cards. Credit cards such as the Chase Freedom Flex and Discover it Cash Back offer quarterly rotating bonus categories with enrollment in areas like home improvement stores, grocery stores or gas stations. The information on this site does not modify any insurance policy terms in any way. What are index funds and how do they work? Others may not accept cards that run on certain payment networks, like American Express. In United States or wherever you are, whenever you need them. Our experts have been helping you master your money for over four decades. Thats because there are some potential restrictions, drawbacks or costs you could encounter, depending on your credit card issuer, the gift card amount, the place of purchase and your own spending habits. Past performance is not indicative of future results. Our goal is to give you the best advice to help you make smart personal finance decisions. Processing credit card transactions comes at a cost for businesses, so some smaller merchants may take only cash or debit card payments to begin with. Were transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Still, make sure your gift cards dont get lost in your junk drawer. The short answer is yes, but. If youve checked out our coverage of 5% rewards credit cards, you know that there are several credit cards offering 5% back or more at places like Walmart, Amazon, Target, office supply stores and more. We'd love to hear from you, please enter your comments. Terms and enforcement of terms vary by issuer and card. Things To Do Before Canceling A Credit Card. We believe everyone should be able to make financial decisions with confidence. For example, in April 2022 American Express is offering $10 back on $60 at Macys on one of my Amex credit cards. The short answer is yes, if it makes sense for you and your purchase habits, and if you can do so within the rules of your credit card issuer and the merchant selling the gift card. If youre trying to stock up on gift cards, aim to spread out those purchases over a period of time and across multiple transactions. The app that delivers presents on demand. The most obvious reason why you might want to buy a gift card with a credit card is to earn points or cash back on that gift card purchase. Second, gift cards do not have the same consumer protections as credit cards, such as limited liability for fraudulent purchases. For instance, while you can use the. Aside from random gift card purchases for birthdays or teacher gifts, some people also go out of their way to buy gift cards with a credit card, usually to earn rewards or save money on a specific purchase. Before joining Bankrate, Claire worked as a copywriter for brands within the telecommunications. Our opinions are our own. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. Buying gift cards with a credit card isnt much different from ordering something online or buying items at your local supermarket. Learn more. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout lifes financial journey. If you use a credit card to purchase your Starbucks drink, you might earn 1% to 2% rewards, but if you purchase a Starbucks gift card at an office supply store you could earn 5 Chase Ultimate Rewards points per dollar by using the Ink Business Cash Credit Card to make the purchase since this card earns 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year and 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. What to do when you lose your 401(k) match, you can send businesses some much-needed cash, Amex EveryDay Credit Card from American Express, Blue Cash Preferred Card from American Express, Credit cards that offer purchase protection, California Consumer Financial Privacy Notice. Buying a gift card with a credit card can lock in rewards or discounts, Buying gift cards with a credit card isnt much different from ordering something online or buying items at your local supermarket. Most of them are usable with one specific retailer until the funds on the card are exhausted. Choose from 70+ secure options & 100+ currencies. Please visit each companys website for additional terms and conditions. This may influence which products we write about and where and how the product appears on a page. This information may be different than what you see when you visit a financial institution, service provider or specific products site. If you plan to give someone a $50 gift card for their birthday, for example, you could buy a gift card with plastic and earn points or cash back on that purchase, whereas you wouldnt earn anything if you gave them a $50 bill instead. But what if you, say, drive an electric vehicle, or arent much of a home cook? And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. Choose from hundreds of retailers! A $95 annual fee applies. Pick your favorite local or global payment method. If you have an American Express card, you no doubt have seen multiple Amex Offers presented to you when you log into your account online, but other banks like Citi and Chase offer similar promotions. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. Buying a gift card or two maybe even a handful with your credit card might not raise red flags. However, this does not influence our evaluations. You can absolutely buy gift cards with a credit card instead of cash or debit, but you should only do so with a plan. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. Because prepaid is the smartest and safest way to pay online. The Target RedCard is available exclusively for purchases made at Target, which means it is rather limited. A Red Ventures company. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. You can also earn $750 in bonus cash back when you sign up and spend $7,500 within three months of account opening. When evaluating offers, please review the financial institutions Terms and Conditions. Well discuss all of these below. Why this card is ideal for gift cards: The Target RedCard also lets you save 5 percent off specialty gift cards for travel, restaurants, subscription services and more. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. MORE: What is a credit card Schumer box and how do you read it? Plenty of other websites let you buy gift cards and pay with a credit card using a similar method, including Staples.com, Walmart.com and Target.com. Advantages include the potential for rewards on your spending, although how much youll earn depends on the cash back credit card or rewards credit card you have. NerdWallet strives to keep its information accurate and up to date. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. Which certificate of deposit account is best? with a credit card is possible and often quite convenient and beneficial. Thats true whether you plan to use the gift cards yourself or youre truly buying gift cards as a gift for someone else. Here is a list of our partners. Disclaimer: NerdWallet strives to keep its information accurate and up to date. Thats 6.5% on travel purchased through Chase Ultimate Rewards, 4.5% on dining and drugstores, and 3% on all other purchases. Can You Get a Credit Card Without a Social Security Number? During the year, I will surely spend at least $1,500 on groceries, so purchasing a grocery store gift card during a quarter when my Discover it Cash Back card offers 5% cash back on groceries means that I can earn an effective 5% cash back on a full $1,500 of my grocery store purchases. Save time and never lose a code! In fact, many credit card issuers specifically forbid it in their fine print. Maybe use your credit card at Kroger to pick up a gift card to your favorite restaurant instead. If you buy gift cards with plastic and dont pay your balance in full, for example, youll wind up paying credit card interest on your revolving balance each month. Can you buy gift cards with a credit card? But others from payment networks like Visa, Mastercard or American Express can be used anywhere that accepts cards from those networks.