Woman holding a gift card envelope tied with a bow

Can You Buy Gift Cards with a Credit Card?

Last Updated: December 4, 2024

4 min read

Table of contents

Key Points:

You can buy most gift cards with a credit card.
Some gift cards charge an inactivity fee if they go unused for a year or more.
Bank-issued gift cards are more flexible than store gift cards, but cards from banks are more likely to charge a purchase fee.

A credit card is a convenient way to purchase all kinds of things—including gift cards. You don’t have to carry cash or write a check, and you may earn credit card rewards. But are there drawbacks to buying gift cards with a credit card? And does it matter what type of gift card purchase you make?

Types of gift cards

You can usually buy any type of gift card with a credit card. But, certain types of gift cards come with fees—meaning the amount you pay could be more than the value on the card.

Store cards

Usually, store gift cards can only be used to make purchases at the merchant who issued the card. Store cards might be good at only one store, or they might let you shop at partner brands—like using an Old Navy gift card at The Gap, because the same parent company owns them both. Store cards usually don’t charge purchase fees or an annual fee for non-use, so the amount you pay is the same as the balance on the gift card no matter how long you've had it sitting around. There are some stores that won’t let you purchase a gift card with a credit card, but most will allow it.

Bank-issued gift cards

Gift cards from a bank are more flexible than store cards because you can use them to shop anywhere that accepts the card issuer’s credit cards. However, bank-issued cards may come with fees. The Consumer Financial Protection bureau explains the limitations on what fees gift card issuers may charge.

Is a prepaid card the same as a gift card?

A prepaid card lets you shop in a variety of places like a bank-issue gift card does, but they aren’t the same.

A prepaid card may have additional fees
You can add funds to a prepaid card just like a debit card
You can’t add funds to a bank-issued gift card
You can often withdraw cash from an ATM with prepaid card, but a bank-issued gift card has no cash access

How to buy gift cards with a credit card

Most merchants sell gift cards online or in person. You can pay for them with a credit card in the same way you would complete any purchase. Buying in person usually means you get a physical gift card. Buying online often gives the choice of either a physical gift card or a virtual card.

A virtual gift card (also called an eGift card or digital gift card) is fast and convenient because your recipient will get your gift by text or email. Many times, they can add a virtual card to their digital wallet for even more convenience.

Redeeming a credit card reward for buying gift cards

Your card issuer may allow you to redeem cash back rewards for gift cards. In some cases, there may be promotions where you get added reward value when redeeming cash back for a gift card.

Did you know?

Discover lets you use your Cashback Bonus^® to get gift cards starting at only $5. Plus get an added bonus on every card! With a minimum 5% added value, this means that redeeming $50 in rewards can get you a gift card worth $52.50. Some of the gift cards offered may have promotions with up to 20% added value.

Learn more about Discover Cash Back Credit Cards

Don’t fall for a gift card scam

The Federal Trade Commission cautions that if someone tries to sell you something and insists you pay them with a gift card, it’s likely to be a scam. Most merchants accept other forms of payment besides gift cards.

As an example, scammers may claim that there’s an urgent need for you to pay with a gift card. One common claim a scammer will make is that you owe a fine to the government and you need to pay with a gift card. You can tell this is fraud because the government never asks for gift cards as payment for a fine.

Purchasing gift cards with a credit card might earn credit card rewards, but putting multiple gift cards on your credit card at once may raise suspicions of gift card fraud. As the New Jersey Department of consumer affairs explains, retailers train employees to suspect gift card fraud when someone purchases multiple gift cards at once.

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