Yes, you can buy gift cards with a credit card at most retailers
You can use a credit card to buy gift cards at nearly every major retailer — grocery stores, department stores, restaurants, and online platforms all accept them. The transaction works exactly like any other purchase: you swipe, insert, or tap your card, and the retailer processes it as a sale.
What matters is understanding which combinations actually make financial sense. Buying a gift card with a rewards card can earn you points or cash back on the purchase itself, but some card issuers have started restricting or capping rewards on gift card purchases. A few retailers also charge fees when you buy gift cards, which cuts into any rewards you earn. The key is knowing your card's rules before you buy.
Key Takeaways
- Most credit cards earn rewards on gift card purchases, but some cards cap rewards at a lower rate or exclude gift cards entirely — check your card's terms.
- A small number of retailers charge a fee to buy gift cards, which can offset the rewards you earn.
- Buying gift cards with a credit card does not change the card's cash advance rules or interest rates — it is treated as a regular purchase.
- If you are trying to meet a spending threshold for a sign-up bonus, gift card purchases usually count toward that total.
How rewards work when you buy a gift card
When you buy a gift card with a rewards credit card, the purchase typically earns points, miles, or cash back at your card's standard rate. A card that earns 2% cash back on all purchases will earn 2% on a $100 gift card purchase — that is $2 back to you. The gift card itself is separate from the rewards; you earn the reward on the transaction, and the recipient can use the card's full value.
Some cards, however, treat gift cards differently. A card might earn 5% cash back on groceries but only 1% on gift cards bought at grocery stores. Others exclude gift cards from bonus categories entirely. A few premium cards have stopped earning any rewards on gift card purchases. You need to check your specific card's terms or call the issuer to know where your card stands.
The issuer's website or your cardholder agreement will list what counts as a gift card purchase. Most issuers define it as buying the physical card or a digital code, not as spending the gift card itself later.
Retailers that charge fees for gift card purchases
Most retailers do not charge a fee to buy a gift card with any payment method. However, a small number do, and the fee can be $2 to $5 depending on the card's value. This fee comes out of the gift card's balance or is charged separately to your credit card.
If you earn 2% cash back on a $100 gift card purchase but the retailer charges a $3 fee, your net gain is only $2 minus $3, which is a loss. Before buying a gift card at a retailer you are unfamiliar with, ask at the register or check the retailer's website for their gift card fee policy. Major chains like Target, Walmart, and Amazon do not charge fees. Smaller retailers and some specialty stores are more likely to have them.
Using gift cards to meet spending thresholds
If your credit card has a sign-up bonus that requires you to spend a certain amount in a set time period, gift card purchases usually count toward that threshold. A bonus that requires $500 in purchases within three months will count a $100 gift card purchase as $100 toward the goal. This is one legitimate way to reach a threshold if you were planning to buy gift cards anyway.
However, buying gift cards solely to meet a spending threshold is rarely worth it. If you would not normally spend that money, you are paying interest on purchases you do not need, which erases the bonus value. The exception is if you buy gift cards for things you actually use — groceries, gas, or restaurants you visit regularly — and you were going to spend that money regardless.
Gift cards and cash advances
Buying a gift card is not treated as a cash advance. A cash advance is when you withdraw actual cash from your credit card at an ATM or through a bank teller. Gift card purchases are regular transactions, so they carry your card's standard interest rate and are included in your regular billing cycle.
This distinction matters because cash advances typically charge a higher interest rate than regular purchases — often 3% to 5% higher — and they start accruing interest immediately with no grace period. Since gift card purchases are not cash advances, you get the same grace period as any other purchase, usually 21 to 25 days before interest kicks in if you do not pay your balance.
Gift cards bought online versus in-store
Buying a gift card online or in-store makes no difference to how your credit card processes the transaction. Both are treated as regular purchases and earn rewards the same way. The difference is in delivery: in-store purchases give you the card immediately, while online purchases may take a few hours to a few days to arrive as a digital code or physical card.
Some credit cards offer bonus rewards for online purchases or for specific retailers. If you are buying a gift card from a retailer where your card earns extra rewards for online shopping, you can earn that higher rate on the gift card purchase. Check your card's bonus categories to see if the retailer qualifies.
When not to use a credit card for gift cards
Avoid using a credit card to buy gift cards if you are carrying a balance or paying interest on other purchases. The rewards you earn — typically 1% to 5% — will not offset credit card interest rates, which range from 15% to 25% or higher. If you owe money on your card, paying that down first is always the better financial move.
Also reconsider if the retailer charges a fee and your card's rewards rate is low. A 1% cash back card earning $1 on a $100 gift card purchase is not worth a $3 fee. And if your card does not earn rewards on gift cards at all, there is no financial advantage to using that card instead of cash or a debit card.
Frequently Asked Questions
Do gift card purchases count toward my credit limit?
Yes. A gift card purchase uses your available credit just like any other transaction. A $100 gift card purchase reduces your available credit by $100 until you pay the charge off.
Can I buy a gift card for a store that does not accept my credit card?
You can buy a gift card for any retailer that sells them, regardless of whether that retailer accepts your credit card directly. For example, you can buy a gift card for a restaurant that only takes cash by purchasing it at a grocery store or online retailer that accepts your card.
What happens if I buy a gift card and then return it?
If you return an unused gift card to the retailer, the refund goes back to your credit card as a credit. The rewards you earned on the original purchase typically stay with you — most issuers do not claw back rewards when you return a purchase.
Are there limits on how many gift cards I can buy with one credit card?
Most retailers have no limit on the number of gift cards you can buy in a single transaction. However, some issuers may flag unusual activity — like buying $5,000 in gift cards in one day — as potentially fraudulent. If this happens, your issuer will contact you to confirm the purchase.
Does buying gift cards hurt my credit score?
No. Gift card purchases do not affect your credit score directly. Your score is based on payment history, credit utilization, and length of credit history — not on what you buy. However, if a large gift card purchase increases your credit utilization ratio significantly, it could have a small temporary impact on your score.