Can You Buy Gift Card With Credit Card

The most common question that bothers consumers’ minds is that, can they buy a gift card with a credit card?

So, the answer to this question is simply yes, definitely, you can do that. Some people even go ahead to buy a gift card with a credit card just to earn a reward or save some bucks on their purchases. It is really easy to buy a gift card in person regardless of any mode of payment that you will use. For this, you just have to bring your gift card to register, and then you have to select the mode of your payment which is a credit card.

Buying a gift card with a credit card online requires the same method as offline. For example, if you are trying to buy a gift card from any website, you just go to that website and choose the gift card that you want to buy now just add that gift card to buying card. Then on the payment page, you can pay through a credit card for your gift card. But a variety of online and real stores may have limits, restrictions, and fees.

Gift cards work similarly to a debit card which allows you to draw your existing balance. The big difference is that your debit card is connected to your bank account but here the gifter will pay the balance. Once you have completed the payment, the card is no longer valued.

Suggested Read: How to Build Credit without Credit Card

Types of Gift Card

There are two types of gift cards that are available in the market.

  1. Store-based
  2. Opened loop

You can buy a credit card using either of them.


Only specific stores regulate credit cards and allow users to use a credit card. No other store will accept these store-based gift cards. For example, if you have a gift card for MAC cosmetics, you will not able to use it SEPHORA and the same goes for SEPHORA gift card to MAC cosmetics.

But if we talk about the worthiness of store-based gift cards so it’s not much worth it. Although few big stores’ gift cards are very valuable.

Pros and Cons of Store-Based Gift Card


  • There are generally no fees associated with these cards.


  • Only branded allow the use of these gift cards, so you will want to make sure that the recipient will buy them at the appropriate stores before handing them out.
  • And if stores go out of business you will lose the value on the card. Though there will usually be a notification confirming that you are using the balance.

Open-Loop Gift Card

Visa and Master card are examples of open-loop gift cards. Financial institutions issue open-loop gift cards. This type of gift card can be used wherever you want to use it but the only condition is that it must be acceptable there.

This type of card is multipurpose as the consumers can use it anywhere and not only on just a  single outlet as store-based cards. In an open-loop card, you just have to be aware of its purchase fee which is few dollars.

Pros and Cons of Open-Loop Gift Card


  • These gift cards can be used anywhere, where a regular credit card works. No usage fee is usually there for the person using it.


  • Fees are associated with buying the open-loop card. Higher value gift cards have higher fees.
  • Store-based gift cards which are purchased with a credit card are allowed by most of the retailers but some stores may have their own restrictions, either to limit or completely ban these types of purchases.

Few Important Guidelines Before Purchasing a Gift Card

Cardholder commonly does not impose any restrictions on buying a gift card but some stores may have few guidelines.

  • Few stores may ask for your (ID) identity card to make sure that your ID card matches the payment of your credit card. This process saves them from buying huge gift card purchases.
  • You should always have a backup plan in case the store does not let you buy a gift card by using a credit card. Because few stores have restrictions on buying gift cards with any credit card. So, for your safety, you should always first ask the store whether they allow the purchase of a gift card with a credit card.

Can You Earn Rewards by Buying a Gift Card With a Credit Card?

One of the biggest advantages of buying a gift card from a credit card is that you can win rewards on your buying. For example, you want to gift someone a gift card worth $100. So, you can purchase your gift card with your credit card and you can win rewards points or cashback. This will not happen if you give them $100 in cash instead.

You just have to be a little careful while choosing the credit card from which you will purchase your gift card. Only a few credit cards just offer you cashback while others are more pliant and give s you flexible points and rewards.

Not Getting Credit Card Rewards for Your Purchasing

It does not matter which type of credit card you buy, be cognizant that your credit card issuer may not offer you a rewards point for your gift card purchases. Despite the fact that lots of credit card issuers are good at letting you buy a gift card with a rewards point so, that is a way to consider it. That is why it is important to read your institution’s policy to know what you have to expect.

And lastly, one thing to keep in mind with any credit card purchase, is that no matter how great the rewards are, it is not a good idea to exaggerate. No matter how fast you plan to pay it off, you should avoid spending more than the 30% of your credit available – doing so could adversely affect your credit score, which could have long-term consequences.

And as with any other credit card purchase, be sure to spend your money within your means and pay your balance whenever possible, so that interest does not start to accumulate.

Pros and Cons of Buying Gift Card With Credit Card


  • You will get rewards points and cashback on your credit card purchasing.
  • User will get a good amount of days to pay back your credit card bill. You will get up to 45 days to pay back for your credit card.


  • None.

Which Type of Credit Card Is Best for Buying a Gift Card?

The best type of credit card for buying gift cards is the one that offers you or lets you achieve as many rewards as possible. So you should choose your credit card to buy a gift card very wisely. Choose those type of credit card which has rewards that you want to earn.

Buying a Gift Card With a Credit Card Is a Cash Advance?

The answer to this question is ‘No’. Buying a gift card with a credit card is generally considered a purchase. Although these transactions can be coded as cash advances in certain circumstances, such as:

  • You buy a prepaid card
  • You buy a gift card at a financial institution.


You can for sure buy gift cards with a credit card but you must do it with a plan. There are not a lot of restrictions on purchasing a gift card with a credit card. Therefore if you are planning to give a gift, so you have to make sure that the recipient will shop at that specific store, in the case of a store-based gift card and if you are gifting open-loop card recipients can shop anywhere they want. When you are shopping online make sure you only use the official site.

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Disclaimer: All the information published here are for informational and educational purposes only. Moreover, all these information are researched from official sources. However, we will not warranty the information to be accurate and completed. Do not share your bank details or personal details in the comment box. For more queries visit the official website.

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