Can you buy gift cards with a credit card?
Typically, you can use your credit card to purchase gift cards. But not all credit cards are the same. Learn how credit card issuers treat gift card purchases to help decide whether it’s the right move for you.
What you’ll learn:
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There are generally two types of gift cards, retail and network.
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You may be able to earn rewards if you purchase gift cards with your credit card.
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Some credit card issuers categorize gift card purchases as cash advances, which typically have higher interest rates and additional fees.
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Gift cards don’t have the same fraud and purchase protections as credit cards.
What types of gift cards can you buy with a credit card?
Gift cards you might buy with a credit card are classified in two ways:
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Retail gift cards: These work at specific stores, such as grocery stores or restaurants. They’re designed to only be used at establishments owned by that company.
- Network gift cards: These prepaid cards are issued by credit card networks. They’re typically more flexible than retail gift cards because you can use them anywhere the network’s cards are accepted.
What is the benefit of buying gift cards with a credit card?
One major benefit of using a credit card to buy gift cards is the potential to earn rewards. But that’s not the case with all credit cards.
With Capital One rewards cards, you can redeem rewards for additional gift cards and more.
Possible drawbacks of buying gift cards with a credit card
Purchasing gift cards with a credit card can be convenient, but there are factors you might want to consider first.
Extra fees
If you use your credit card to buy a gift card, you might be faced with additional costs, such as:
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Cash advance fees: If your card issuer classifies a gift card purchase as a cash advance, that can mean high fees, an immediate interest charge and no grace period. You can check your credit card agreement to see if this applies to your card.
- Purchase fees: Some gift cards have activation fees in addition to their face value. These fees may apply no matter how you choose to purchase the gift card.
Buying gift cards with a credit card FAQ
Still curious about using a credit card to buy gift cards? Here are the answers to some frequently asked questions:
Is buying a gift card with a credit card considered a cash advance?
This can vary by card issuer. Check your credit card agreement or contact your issuer to find out.
How do you buy gift cards with a credit card?
In most cases, you can buy gift cards either in person or online.
Do gift cards offer the same purchase protections as credit cards?
Gift cards don’t offer all the protections that come with credit card purchases. For example, if someone steals and uses your gift card, there isn’t much you can do. But credit cards offer $0 fraud liability for unauthorized charges.
You might also miss out on additional coverage, such as extended warranties, after you make a purchase.
Key takeaways: Buying gift cards with a credit card
Typically, you can use a credit card to buy gift cards. But you may want to first check on whether your issuer classifies it as a cash advance or whether you can potentially earn rewards on the purchase.
You can earn cash back on every purchase every day with a cash back rewards credit card from Capital One. See whether you’re pre-approved for rewards cards, with no harm to your credit scores.
