Can you buy gift cards with a credit card?

Yes, you can typically use a credit card to buy gift cards. Although you can use cash or debit cards to pay for them, there are several advantages to using credit cards to buy gift cards. But before making your purchase with a credit card, read on for some factors you should consider.

What you’ll learn:

• You can buy gift cards with a credit card. Doing this could help you earn rewards and take advantage of discounts and promotions. 

• Read your credit card agreement before buying a gift card with a credit card. Some retailers and card issuers place restrictions on these purchases.

• One major trade-off is losing payment flexibility, since you can often only use gift cards with one retailer.

Buying a gift card with a credit card can offer convenience and other benefits, such as:

One major benefit of using a credit card to buy gift cards is the potential to earn rewards. Each dollar you spend on gift cards might help you earn points, depending on the credit card you use and its rewards program. You can redeem rewards and points for things like flights, hotel stays, ride-sharing apps, merchandise and more. You may not get this perk if you’re buying gift cards with a debit card or cash.

Many credit cards offer cash back rewards when you make eligible purchases. These types of credit cards typically provide a percentage of each purchase back as cash. Depending on the credit card’s cash back program, you may have several redemption options. For example, you may be able to transfer the cash into your bank account, receive a statement credit or pay for purchases at certain retailers.

Some credit cards provide more points or higher cash back rates on certain spending categories. For example, you might earn more rewards when you make purchases at grocery stores or gas stations. You can maximize these bonus categories by buying gift cards at retailers that fit the category description.

Some credit card issuers offer shopping portals or provide discounts on all purchases when you use the card at a specific retailer. Taking advantage of these discounts by buying gift cards can help you save money before you even use the card. 

Sometimes, these discounts may be promotional when you use the card at specified retailers within a certain time frame. You may see a promotion for a merchant you typically shop with, but you don’t have an immediate purchase in mind. In these instances, you can buy a gift card with that merchant using your credit card if you want to take advantage of the promotion.

Although buying gift cards with a credit card is possible, it also has potential drawbacks and risks: 

• You may not earn rewards. Some credit cards exclude gift cards and “cash equivalents” from earning rewards. If gift cards aren’t listed as an eligible purchase in your cardholder agreement, then you won’t earn rewards when buying gift cards with your credit card. 

• Your purchase may be limited. Sometimes, retailers have a set maximum number of gift cards you’re allowed to purchase with a credit card. You can check with the retailer to see what their policies are.

• You may need to pay interest. Remember that paying with a credit card could also mean paying interest charges if you end up carrying a balance on your card.

When you use a credit card to buy gift cards, the transaction may count as a cash advance, but this can vary by credit card issuer. Credit card issuers usually charge a fee for cash advances along with a different annual percentage rate (APR).

There may be more general drawbacks to buying gift cards to consider as well. For instance:

• Gift cards may provide less flexibility. When you buy a gift card from a certain retailer, you lose spending flexibility because you may not be able to use the card at another merchant.

• You might not use the gift card. There’s always the risk you’ll lose the gift card or forget you have it. In that case, the money you spent on the gift card could be wasted.

• Gift cards have fewer consumer protections. Gift cards don’t offer some of the protections that automatically come with credit cards. For example, you generally won’t pay for fraudulent credit card purchases if you report them within a certain time frame. But if someone steals and uses your gift card, there might not be much you can do.

• You might give up certain benefits. Gift cards usually don’t offer return protection, purchase protection or extended warranties. Credit cards, on the other hand, usually offer these benefits.

There are two main ways to buy the gift card: in person or online.

At a store, you’ll choose your gift cards and take them to the register. Use your credit card to pay for the cards. If you’re buying gift cards online, head to the website where you’ll buy the cards. Add the gift cards to your cart, then head to the checkout page. Choose “credit card” as your payment method, and type in your details. Then complete the online purchase.

Still curious to know more about using a credit card to buy gift cards? Here are the answers to some frequently asked questions:

Buying gift cards with a credit card can be a great way to earn extra rewards and take advantage of promotions. You’ll just need to first make sure your card issuer allows these types of purchases. And it’s worth checking to see whether you’ll earn rewards in the process.

Another great way to get gift cards with a credit card? Through credit card rewards. With cash back credit cards from Capital One, you can earn rewards on everyday purchases and then cash in your rewards for gift cards at some of your favorite retailers, restaurants, gas stations and more. You can even find out whether you’re pre-approved with no harm to your credit score.