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Can you buy gift cards with a credit card?

It’s usually allowed, but depends on the store.

Because gift cards can be used like cash, you might wonder if you can buy them with credit cards. You may be in luck: Retailers usually allow it. But watch out for the possibility of declined transactions, and avoid cash advances when possible.

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 won’t 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.

What to be prepared for when you buy gift cards with a credit card

While you’ll usually have no trouble using your credit card to buy gift cards, once in a while you may run into a few hiccups. Here are a few common instances to watch out for:

You may be asked for your photo ID.

Some stores will ask that you show a matching ID when using a credit card to buy gift cards. By matching a name and face to the credit card, stores make it more difficult for people to use stolen cards for these transactions.

The transaction may be declined due to store-specific policies.

You could run into any number of responses at the checkout counter:

  • A credit card ban may be implemented throughout all stores in a chain.
  • Credit cards may not be allowed at the specific store you’re in if it’s a prime target for fraudsters.
  • A sales associate may mistakenly tell you the wrong store policy.

The easiest way around these roadblocks? Try a different store. If you’re feeling lucky, you could try the transaction again with another clerk at the same store.

Your card issuer may flag the transaction.

In this case, the transaction will be halted, and you’ll need to verify on your mobile device that you initiated the purchase. If the notification comes quickly enough, you may be able to proceed with the transaction at the counter. Otherwise, you’ll need to cancel the purchase and try again after you’ve verified it with your issuer.

One way to get around this limitation is by carrying a backup card. This card might not offer the rewards you were hoping for, but it may save you from having to try the transaction again.

Pro tip: Alternatives to using your credit card to buy gift cards

A store might not accept credit cards for gift-card purchases. However, you’ll likely have no issue if you pay for gift cards with cash, check or debit card.

When I buy a gift card with a credit card, is this a cash advance?

The answer is usually not. Buying a gift card with a credit card is usually considered a purchase. However, this transaction could be coded as a cash advance in certain instances, such as when:

  • You buy a prepaid card.
    Products such as Visa Gift Cards and American Express Gift Cards are sometimes considered cash equivalents, especially as they can be used virtually anywhere credit cards are accepted. You’ll rarely have this problem with closed-loop credit cards, because they can be used only at the stores that issue them.
  • You buy a gift card at a financial institution.
    If your card issuer generally codes a merchant’s services as cash advances, your gift-card purchase may fall under this category as well.

How to avoid cash advances when buying gift cards with your credit card

If you’re worried about cash advances, call your card issuer and try these strategies:

  • Ask if your gift-card purchase will code as a purchase or cash advance.
    Your issuer may be able to tell you outright if you’ll need to worry about cash advances.
  • Turn off cash advances for your credit card.
    If your issuer allows this, any cash advances will simply be declined when you use your credit card for them.

Compare credit cards to buy gift cards

Buying gift cards with grocery store credit cards can be a great choice. This is because grocery stores can offer a wide selection of gift cards, and certain cards offer strong rewards at these locations.

Rotating-cashback cards can be useful as well, occasionally offering bonus rewards in categories such as grocery stores and

Lastly, store-specific credit cards can be lucrative for gift cards on top of giving you rewards for everyday purchases. Be sure to learn their bonus-reward rules for gift card purchases, though. With the Target REDcard™ Credit Card, for example, you won’t get the 5% discount on Target gift cards or prepaid cards, or on lottery, Stockpile or Gift of College gift cards.

1 - 3 of 7
Name Product Welcome Offer Rewards Annual fee Filter values
PenFed Platinum Rewards Visa Signature® Card
15,000 Bonus Points when you spend $1,500 in the first 90 days
Up to 5x points
Earn 5x points on gas at the pump and 3x points on groceries. Earn 1x points on all other purchases.
Chase Sapphire Preferred® Card
60,000 points after spending $4,000 in the first 3 months
Up to 5x points
Earn 60,000 points after spending $4,000 in the first 3 months. That's worth $750 when you redeem through Chase Ultimate Rewards.
Chase Sapphire Reserve®
Earn 60,000 points after spending $4,000 in the first 3 months, from account opening. That's $900 toward travel when you redeem through Chase Ultimate Rewards®
Up to 10x points
Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards®. For example 60,000 points are worth $900 toward travel

How do I earn rewards when buying gift cards with a credit card?

Earn rewards on gift card purchases with your credit card. One of the best strategies is to use a grocery credit card at an eligible grocery store. Specific store cards may also offer excellent rewards.

And if you love the variety of new bonus categories, rotating-cashback cards may give you a few optimal months each year to buy gift cards. None of these card types work for you? Consider a trusty flat-rate cashback card that offers solid rewards on all purchases, including gift cards.

The Citi® Double Cash Card is a market-leading choice.

Pro tip: Double-check if you earn bonus rewards on gift cards

Before applying for a credit card or using one for a gift-card purchase, read the fine print. Check if the credit card offers bonus rewards on gift cards as some providers specifically block bonus rewards on these purchases.

Will my issuer close my credit card for buying gift cards?

Issuers typically consider gift cards to be legitimate purchases, but tread lightly if you’re dipping your toes into manufactured spending. This means buying things with your credit card that can be quickly converted to cash — such as gift cards.

Those engaging in manufactured spending may buy gift cards regularly in significant quantities. It’s this volume that typically raises flags with card issuers and leads to account shutdowns.

Ultimately, if you’re buying gift cards for manufactured spending, your issuer may eventually catch on and close your account. But if you buy gift cards here and there — particularly if you plan on giving them as presents or using them yourself — you’re probably fine.

Bottom line

Though policies may vary by store and card issuer, you can usually use a credit card to buy gift cards. Avoid having your gift-card purchases classified as cash advances, and be careful with manufactured spending.

If you want rewards for gift-card purchases, consider one of the best grocery credit cards on the market.

Frequently asked questions

Why are cash advances not recommended?
For each cash advance, you’ll pay a fee — typically $10 or 5% of the transaction. You’ll also usually pay a higher interest rate.

What fees come with buying gift cards?
Closed-loop gift cards usually don’t come with extra fees. But if you buy a prepaid gift card, such as a Visa Gift Card, you’ll usually pay a fee of around $3 to $5.

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