Can I Buy Gift Cards With My Credit Card
Gift cards are an easy-to-please present for just about anyone. You might be considering picking up some gift cards as a nice surprise for friends and family or as a special treat to yourself. You might also be considering putting those purchases on a credit card to earn rewards.
can i buy gift cards with my credit card
Can you buy gift cards with a credit card? The short answer is yes, but. Gift card purchases are allowed to be paid for with credit cards in most circumstances, but you might not earn the rewards you expect.
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. Most merchants who sell gift cards will allow you to pay for your gift card purchase with a credit card.
For example, many office supply stores sell Starbucks gift cards. 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. Earn 1% cash back on all other purchases.
If you have a home improvement project planned in the future, buying a home improvement gift card when home improvement stores are a quarterly category bonus can lock in 5% cash back on those purchases.
Purchasing gift cards for anticipated future spending can be especially useful with cards offering category bonuses, but can also be used with cards like the Blue Cash Preferred Card from American Express that have annual limits on bonus cash-back categories.
Many cards offer periodic promotions, such as a discount or increased cash back at specific merchants. 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. If you see one of these offers for a merchant you frequent, but do not have an immediate purchase in mind, buying a gift card can be a good way to lock in one of these promotions.
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? There are a few reasons to be judicious in your gift card purchases.
For starters, gift cards tie your cash to a certain merchant. When you purchase a gift card, you are converting cash, which can be used anywhere, into a credit that can only be used at a certain merchant. This means you have less flexibility in your purchasing. If you purchase gift cards speculatively, you might find yourself paying a higher price to buy something from a merchant in order to use up a gift card. In the worst case scenario, if the store associated with a gift card that you purchased goes bankrupt, you might find yourself having paid for a plastic card that is now worthless.
Finally, one of the reasons that merchants love gift cards is because they are subject to breakage. Simply, breakage represents the amount of gift cards that are purchased but never redeemed. If you purchase gift cards, make sure that you have a plan to keep track of and use them.
These days, retailers are more likely to provide an option to buy gift cards on their websites. In general, credit cards are accepted for this type of transaction. Gift cards might be usable on the website and in the retailer's brick-and-mortar stores, but that depends on the retailer.
Just because you buy a gift card online doesn't mean it will be delivered that way. As you check out, the merchant might give you the option of receiving a plastic card in the mail for the gift card you're buying.
Gift cards are a common redemption option in credit card rewards programs. This is partly because gift cards are popular presents yearround. Depending on your credit card, the gift cards available this way can range from niche stores to department stores, restaurants and even entertainment services.
The conversion rate from rewards points to gift card dollars is usually the same as it is for statement credits: one point equals one cent. Check your credit card's rewards program for the exact conversion and special offers. And if you're saving points to redeem them for a gift card, remember to check if your points expire.
Chase rewards points don't expire as long as your account is open, and sometimes gift cards are offered for a discounted number of rewards points. If you have a Chase credit card, visit Chase Ultimate Rewards to explore the possibilities.
Some stores sell their own gift cards, which are usually valid at the retail store and its partners. This type of gift card is also available at various third-party websites. Conversely, credit card networks like Visa and Mastercard offer generic gift cards, which you can use at any seller that accepts cards in that network.
Buying a gift card from someone's favorite store is a good way to personalize the gift even though it doesn't always feel that way. Another advantage is that store cards usually don't have fees associated with them; the amount you pay should be the face value of the gift card, particularly if you buy it directly from that store.
A retailer that accepts credit cards in a certain network should accept that network's gift cards. For example, a store that accepts Visa should also accept a Visa gift card. Credit cards are commonly accepted to purchase generic gift cards in department stores, pharmacies, grocery stores and online.
You might also call these eGift Cards" because they're purchased and delivered electronically. Usually there's no option to receive a plastic card, but virtual gift cards work the same way that physical ones do. You may even get a barcode or QR code that you can print and use at a store or show from your phone. Nowadays, you're more likely to find virtual gift cards for sale through retailers' websites and third-party gift card sites.
Although you might be able to use your credit card, your rewards program may not let you earn rewards on a gift card purchase. The credit card issuer may categorize the purchase and exempt it from rewards earning.
There's a small chance a card issuer may treat a gift card purchase as a cash advance. Before you buy a gift card with your credit card, a helpful step you can take is to check your card's terms and conditions.
The ideal gift card has no fees associated with it, doesn't expire and lets your recipient use it both in person and online. If you made it this far, you're also looking for the merchant to accept your credit card as payment for the gift card.
Both store gift cards and generic gift cards can meet all these criteria, but whether you can use a credit card depends on your card issuer and the merchant. Retail cards for someone's favorite store are thoughtful, but they may appreciate a generic gift card's flexibility.
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.
Buying gift cards in person is a breeze regardless of how you decide to pay. When you buy a gift card with a credit card in person, you simply bring the gift card to the register and choose credit as your form of payment.
The scene is similar when you buy a gift card online and pay with a credit card. If you want to buy an Amazon.com gift card online, for example, you would simply head to Amazon.com and select whether you want a gift card mailed to you, one you can print at home or a gift card via email. From there, you add the gift card to your online cart and proceed to the payment page as normal.
Just make sure you pick the right type of rewards credit card for your gift card purchases. Some rewards credit cards only let you earn cash back, while others offer flexible rewards or points you can use in a specific airline or hotel program.
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. By buying gift cards now, you can send businesses some much-needed cash and wait to redeem your gift card for goods or services at a later date.
Generally speaking, gift cards code as a cash advance when you buy them directly from a financial institution or when you buy a prepaid card instead of a gift card. However, you can get around this by buying gift cards within your normal shopping, such as in your weekly grocery haul at the supermarket.
You can also get around dealing with surprise cash advance fees by asking retailers if their gift cards code as a cash advance or purchase before you buy, or you can call your card issuer and ask them to turn off cash advances on your card altogether.
The best credit cards to use for gift cards are ones that let you rack up as much in rewards as you possibly can. With that being said, you should choose a credit card for gift cards carefully and based on the type of rewards you hope to earn.
The Blue Cash Preferred Card from American Express lets you earn 6 percent back on up to $6,000 spent at U.S. supermarkets each year (1 percent after that), 6 percent back on select U.S. streaming services, 3 percent back at U.S. gas stations and on transit and 1 percent back on all other purchases. You can also earn a $350 statement credit after you spend $3,000 in purchases on your new card within the first six months. A $95 annual fee applies.
Why this card is ideal for gift cards: Use this card for gift card purchases made at office supply stores in order to earn 5 percent back on up to $25,000 spent each account anniversary year. 041b061a72