Can you buy gift cards with a credit card?

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.

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.

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 Amazon.com.

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.

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Name	Product	Welcome Offer	Rewards	Annual fee	Filter values
Blue Cash Preferred® Card from American Express		$300 statement credit after spending $3,000 in the first 6 months	6% on select US streaming services, 3% on transit and US gas stations, 6% at US supermarkets on up to $6,000 annually, then 1% after that and on other purchases (redeem as statement credit)	$0 intro annual fee for the first year ($95 thereafter)		Earn a $300 statement credit after you spend $3,000 in purchases on your new card within the first 6 months. Having 6 months to earn a welcome offer is a rare benefit as most cards give you only 3. Terms apply, see rates & fees	Apply now View details	Compare	loading Fetching your data...
Blue Cash Everyday® Card from American Express		Earn a $200 statement credit after spending $2,000 in the first 6 months	3% at US supermarkets on up to $6,000 per year (then 1%), 2% at US gas stations and select US department stores and 1% on other purchases (redeem as statement credit)	$0		Earn a $200 statement credit after spending $2,000 in the first 6 months. This is a higher-than-average welcome offer for a card with no annual fee. Terms apply, see rates & fees	Apply now View details	Compare	loading Fetching your data...
Chase Freedom Unlimited®		Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back	3% on dining at restaurants, including takeout and eligible delivery services, 3% on drugstore purchases, 5% on travel purchased through Chase Ultimate Rewards®, Unlimited 1.5% cash back on all other purchases	$0		This solid 1.5% cashback card gets even better with the addition of up to 5% back in categories like travel, drug stores and dining.	See offer View details	Compare	loading Fetching your data...

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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.

Where can I learn more about manufactured spending?
Our guide to meeting your credit card’s minimum spend has a few strategies for manufactured spending. While manufactured spending isn’t illegal, card issuers generally frown upon it. Use it with caution.