Can I Use Credit Card To Purchase A Gift Card?

If you ever had wondered ‘Can I Use Credit Card To Purchase A Gift Card?’ to get the answer, read further! The scope of use of credit cards has been increasing in the world, right from the withdrawal of cash from ATMs to obtaining rewards and offers out of it. One of the uses of credit cards is that it allows the owner to purchase gift cards using them. Most retailers allow their customers to buy a gift card using their credit cards except for certain reasons like store policy or product policy etc. The gift cards act as debit cards by letting a person draw an existing balance for purchase from a specific retailer or a network of sellers.

Can I Use Credit Card To Purchase A Gift Card?

Preparation for Buying Gift Card with Credit Card

Some stores demand the ID of the person who intends to buy a gift card with his credit card. This is to ensure that there is no misrepresentation made by the customer using the credit card. 

There are two kinds of gift cards- store-based gift cards and open-loop gift cards. The store-based gift card confines the purchaser to buy the product from a specific store or store chain, while the open-loop or generic gift card allows him to use the card wherever the card’s network is available. So a person who intends to purchase a gift card with a credit card must check for the versatility of the gift card and check its accessibility. The transaction may be declined if he/she tries to purchase an item from any other store than the prescribed one in case of a store-specific gift card.

The purchase of a gift card with a credit card is usually considered as a purchase and not as a cash advance. But under certain circumstances, they are considered to be cash advances- buying a gift card from a financial institution or buying a prepaid card.

While buying gift cards, it is recommended to buy the one which has no fees associated with this. This mainly points towards store-based gift cards. 

The gift cards can be purchased from retailers like Target, Walmart, Amazon, Staples, etc. The generic, as well as store gift cards, will be available at various grocery stores, supermarkets, superstores, convenient stores, gas stations, warehouse clubs, drugstores, etc. As there are chances that the online gift card sale may be fraudulent at times, it is essential for a person needs to look into the credibility of the company from which he intends to purchase the gift card.

The gift card purchase with a credit card can earn rewards. The specific store cards may also provide various rewards. Moreover, even online gift cards can also be bought using credit cards. 

Issues in buying gift cards

  • Unlike credit cards, gift cards are not protected from fraud or theft. So there can be the rise of safety issues with gift cards. So the risk of buying gift cards using credit cards is higher.
  • There are chances that the credit card issuer may not provide rewards for the gift card purchase with the credit card. Also, overextending to the purchase of gift cards with credit cards can negatively affect the credit score.
  • Some stores may have specific guidelines to restrict the purchase of gift cards, and also, there can be location-specific restrictions.
  • Some issuers of gift cards consider it as cash advances. Due to this, they do not provide rewards and also can accrue high rates of interest for the issued gift card. So one must ensure that the issuer does not view it as a cash advance but a regular purchase.
  • If a person buys gift cards for manufactured spending, the card issuer may get the knowledge of it, and he/she will have to close the account. So buying gift cards with credit cards is only meant for legitimate purposes.


Credit cards which have been in existence for a long time, have found another purpose, which is to buy gift cards from issuers and thereby availing rewards while purchasing items. The use of gift cards has even been extended to the online platforms, thus the credit cards being extended their scope to the online stores as well to a large extent. Even though there are risks involved in purchasing a gift card with a credit card, such as safety concerns, cash advances, manufactured spending, etc., this trend has been spreading among people. But there should be inventions in the field to ensure credibility and safe transactions using gift cards, and steps must be taken to eliminate fraud and identity theft which has been the growing concern while purchasing gift cards with a credit card.

Frequently Asked Questions

  1. How can I ensure that I am not scammed while using gift cards?

The Federal Trade Commission has been established for this purpose which is to warn the gift card scammers and make people aware that legitimate organizations will not ask for gift card payments. Also, avoiding the sharing of PIN and gift card information can minimize such scams.

  1. Why is it said that a person shall avoid buying a gift card if he/she considers it to be a cash advance?

The purchase of a gift card when it is considered as a cash advance is a loss since it may impose a heavy rate of interest to be paid back to the issuer.

  1. What is manufactured spend?

It is the use of credit cards to purchase prepaid Visa, Mastercard, etc., in return to which rewards could be earned. The terms of credit cards are often violated in this case.

Can I Use Credit Card To Purchase A Gift Card?

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