Can You Buy Gift Cards with a Credit Card? (What to Know Before You Try)

ago 2 days

119

Listen to this article

Can you buy gift cards with a credit card without fees? This guide explains when it’s treated as a purchase vs. a cash advance, where to buy, and the best cards for earning rewards.

It’s a question that confuses a lot of shoppers: can you actually buy a gift card using your credit card? Will the transaction go through smoothly, or will it get flagged, declined, or hit you with unexpected fees?

This is an especially important question for anyone trying to maximize their credit card points or cash back.

In this guide, we will break down everything you need to know. We’ll cover when you can use a credit card to buy gift cards, the hidden rules you need to be aware of, and the situations where you absolutely should not. Let’s clear up the confusion so you can shop smart.

Table of Contents

The Simple Answer: Yes, You Can (Most of the Time)

Let’s start with the basics. In most cases, yes, you can absolutely use your credit card to buy gift cards.

Whether you are buying a store-specific gift card (like for Amazon, Walmart, or a local restaurant) or a general-purpose prepaid card (like a Visa or Mastercard gift card), most retailers will treat the transaction like any other regular purchase. This means you will still earn your normal credit card rewards, such as points, miles, or cash back.

You can do this at a wide variety of locations, including:

Grocery stores
Pharmacies and drugstores
Convenience stores
Major retail stores
Online marketplaces like Amazon

However, there is a very important exception to this rule that can cost you money if you’re not careful.

The Big Catch: When a Gift Card Purchase Becomes a “Cash Advance”

Here is the most critical thing you need to understand. Some credit card issuers have a special rule in their terms and conditions that classifies the purchase of “cash-like equivalents” as a cash advance, not a regular purchase.

ALSO READ: What Credit Cards Does Costco Accept? (A Shopper's Guide)

This rule is most often applied when you buy general-purpose prepaid gift cards (like Visa, Mastercard, or American Express gift cards) that can be used anywhere.

If your purchase is treated as a cash advance, two very bad things happen:

You Earn No Rewards: You will not get any points, miles, or cash back on the transaction.
You Are Hit with High Fees and Immediate Interest: You will be charged a cash advance fee (typically 10 or 3-5% of the transaction amount, whichever is greater) and, unlike regular purchases, interest starts accruing immediately from the day of the purchase at a very high APR.

How to Avoid This: Before you buy a prepaid Visa, Mastercard, or AmEx gift card with your credit card, it is always a smart idea to check your card’s terms and conditions or call customer service to confirm how they treat such purchases.

Where Can You Safely Buy Gift Cards with a Credit Card?

To ensure your transaction is treated as a regular purchase and that you earn rewards, it is best to buy your gift cards at traditional retail locations. These places almost always process the sale as a standard retail transaction.

Safe places to buy include:

Grocery stores: Kroger, Safeway, Albertsons, etc.
Big-box retailers: Walmart, Target
Drugstores: CVS, Walgreens, Rite Aid
Online stores: Amazon, Best Buy, or the official brand’s website (e.g., Apple.com).
Warehouse clubs: Costco and Sam’s Club (just remember they only accept specific credit card networks).

When and Where You Should AVOID Using a Credit Card

To protect yourself from fees and potential issues, avoid using a credit card to buy gift cards in these specific situations:

At Banks or Financial Institutions: Buying a gift card directly from a bank or credit union will almost always be processed as a cash advance.
For Money Orders or Reloadable Debit Cards: Purchases of money orders or reloads for cards like NetSpend or Chime are also typically treated as cash advances.
From Unknown Websites: Only buy gift cards from reputable, well-known retailers. Unknown websites could be scams or may charge exorbitant fees.
When “Manufacturing Spend”: Be very careful about buying large volumes of gift cards with your credit card just to meet a sign-up bonus or rack up rewards. Banks’ fraud detection systems are very sophisticated and can flag this “manufacturing spend” as suspicious activity, which could lead to your account being shut down.

ALSO READ: Credit Cards That Only Pull From Equifax: A Smart Applicant's Guide (2025)

The Best Credit Cards for Buying Gift Cards (to Maximize Rewards)

If you’re a strategic shopper, you can use gift cards to maximize your credit card rewards. The trick is to buy gift cards for one store at another store where you earn a higher rewards rate.

For example, if your credit card offers 5% cash back at grocery stores, you can go to the grocery store and buy gift cards for other places where you normally shop, like Amazon, gas stations, or your favorite restaurant. This effectively allows you to earn 5% back on those purchases as well.

Here are some of the best credit cards for this strategy:

Chase Freedom Flex℠: This card offers 5% cash back on up to $1,500 in combined purchases in rotating quarterly categories. These categories often include grocery stores, Amazon.com, or Walmart, making it perfect for buying gift cards.
Blue Cash Everyday® Card from American Express: This card offers 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases), giving you a year-round bonus on any gift cards you buy there.
Citi Custom Cash℠ Card: This card earns 5% cash back on your top eligible spending category each billing cycle (on up to $500 spent), which can easily be grocery stores or gas stations.

Does Buying Gift Cards Hurt Your Credit Score?

Buying gift cards with a credit card does not directly hurt your credit score. A credit bureau cannot see what specific items you purchased, only the total amount of the transaction at a particular merchant.

However, there is an indirect way it can affect your score. If you buy a large amount of gift cards and this causes the balance on your credit card to get close to its limit, your credit utilization ratio will go up. A high credit utilization ratio can temporarily lower your credit score.

ALSO READ: How Many Credit Cards Should You Have? The 4 Levels of Credit Card Ownership

As always, the key is to spend responsibly and pay your balance in full each month.

Summary: Shop Smart and Earn Rewards

So, to recap the key points:

✅ Yes, you can buy gift cards with a credit card at most retailers, and it will be treated as a regular purchase.
⚠️ Be very careful when buying prepaid Visa, Mastercard, or AmEx gift cards, as some banks may treat this as a costly cash advance.
🏆 You can strategically use gift cards to maximize your credit card rewards by buying them at stores with bonus categories, like grocery stores.

By understanding these simple rules, you can confidently use your credit card to buy gift cards without worrying about unexpected fees and while earning valuable rewards.

Join us on Telegram and whatsapp and chat below 👇👇

Check out full guides here:
Paddedvibez.com/blog
👇
Get full update:
Minsjohnfrancis.com/blog
👇
Contact:
https://wa.me/2348162365380
👇
Join Group: https://chat.whatsapp.com/Hc3nF6Cc5W9240qOF2s6THhttps://chat.whatsapp.com/Do3e7GuBQaxD7y3GxACYma
👇
Join Patreon:
https://Patreon.com/Paddedvibez
👇
Download our App
https://filelu.com/yxungjhfuz4y
👇
Join Telegram:
https://t.me/realcashclub