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 credit cards for gift card purchases. The transaction processes like any other purchase: the retailer charges your card, and you receive the gift card code or physical card immediately.
The catch is that gift card purchases do not earn rewards on most cards. Many credit card issuers explicitly exclude gift cards from bonus categories and sometimes from earning any rewards at all. Before you buy, check your card's terms to see whether gift cards count toward your rewards rate or if they fall into a category that earns nothing.
Key Takeaways
- Most credit cards treat gift card purchases as regular transactions that earn either no rewards or only the base cash back rate, even if the retailer is in a bonus category.
- Some cards exclude gift cards entirely from earning rewards, so you should check your card's terms before making the purchase.
- Buying a gift card with a credit card does not change the card's protections — you still have fraud liability limits and dispute rights if something goes wrong.
- Using a debit card or cash to buy a gift card avoids the rewards question but removes the fraud protections that come with a credit card.
- Gift card sales at warehouse clubs like Costco sometimes offer discounts on the card's face value, which can make the purchase worthwhile even without credit card rewards.
How rewards work when you buy a gift card
The way your card treats gift cards depends on the issuer's rules, not the retailer. If you have a card that earns 3% cash back on grocery purchases, buying a gift card at a grocery store will not earn 3% — it will earn either 1% (the base rate) or nothing, depending on the card.
Visa, Mastercard, and American Express do not have a universal rule about this. Each card issuer decides whether to count gift cards as a purchase in the bonus category or exclude them entirely. Chase, American Express, and Discover all have cards that exclude gift cards from bonus categories. Some cards from smaller issuers may not have this restriction, but you have to read the specific card's terms to know.
The exclusion applies to physical gift cards, digital gift cards, and gift card codes — the format does not matter. If the card's terms say gift cards are excluded, all forms are excluded.
Where to find the gift card rule for your card
Your card's benefits guide or terms and conditions document will state whether gift cards earn rewards. Log into your card issuer's website, go to the account or benefits section, and look for a document called "Benefits Guide," "Card Terms," or "Rewards Terms." Search the page for the word "gift" to find the relevant section quickly.
If you cannot find it online, call the customer service number on the back of your card and ask directly: "Do gift card purchases earn rewards on this card?" The representative can give you a yes-or-no answer in seconds. Write down the date and time of the call in case you need to reference it later.
Credit card protections still apply to gift card purchases
When you buy a gift card with a credit card, you retain all the fraud protections that come with the card. If someone uses your card number without permission to buy a gift card, you can dispute the charge and your liability is capped at $50 under federal law (and $0 on most cards in practice). The credit card company will investigate and reverse the charge if it was fraudulent.
This protection does not extend to the gift card itself once you have it. If you lose the physical card or someone steals the code, the retailer is not required to replace it — that is a matter between you and the retailer's customer service. But the purchase transaction itself is protected the same way any other credit card purchase is.
When buying a gift card with a credit card makes sense
The main reason to use a credit card is fraud protection and the ability to dispute a charge if the retailer fails to deliver the card or the code does not work. If you are buying a gift card from a retailer you trust and the card does not earn rewards anyway, this protection alone may be worth using a credit card instead of cash or debit.
Gift card sales at warehouse clubs like Costco sometimes offer discounts — you might buy a $100 restaurant gift card for $85. In that case, the savings outweigh the lack of rewards, and a credit card is a reasonable way to pay. Just confirm the discount applies before you buy.
If your card has a high cash back rate on a category that does include gift cards (which is rare), buying gift cards could be a way to manufacture spending in that category. Check your terms first — if the card says gift cards are excluded, this will not work.
Alternatives to buying gift cards with a credit card
If your card excludes gift cards from rewards, you have other options. Some people buy gift cards with a debit card or cash to avoid the rewards question entirely. This removes the fraud protection, but it also removes the temptation to chase rewards on a purchase that will not earn them.
Another option is to buy the gift card directly from the retailer's website or app using a method that does earn rewards — for example, some retailers offer their own rewards programs that apply to gift card purchases even when credit card rewards do not. Check the retailer's website to see if they have a loyalty program that covers gift cards.
If you want to earn rewards on a gift card purchase, look for a card that does not exclude them. Some smaller issuers and some cards from regional banks do not have gift card exclusions, though these cards are less common than the major cards that do exclude them.
What happens if the gift card code does not work
If you receive a gift card code that does not work or the retailer says the card was never activated, contact the retailer's customer service first. They can usually reissue the code or send a replacement card within a few business days. Keep your receipt or order confirmation so you can prove you purchased it.
If the retailer refuses to help, you can dispute the charge with your credit card company. File a dispute within 60 days of the purchase and explain that the code did not work or the card was not delivered. The credit card company will contact the retailer and ask for proof that you received a working card. If the retailer cannot provide that proof, the charge will be reversed.
Frequently Asked Questions
Do gift cards count toward my credit card's spending minimum for a bonus?
This depends on the card. Some issuers count all purchases toward the minimum, including gift cards. Others exclude gift cards from the minimum calculation. Check your card's terms or call customer service to confirm. If your card excludes gift cards from earning rewards, it usually also excludes them from the spending minimum.
Can I buy a gift card with a credit card that is not in my name?
Technically yes — the retailer will process the transaction as long as the card is not declined. However, if the card is not yours, you should not use it without the cardholder's permission. The cardholder is responsible for all charges on the card, and using someone else's card without consent is fraud.
Does buying a gift card with a credit card hurt my credit score?
No. A gift card purchase is treated like any other purchase and does not affect your credit score. Your credit utilization (the percentage of your credit limit you are using) may increase temporarily, but it will return to normal once you pay the bill.
What if I buy a gift card and then return it?
Most retailers will refund the purchase price back to your credit card if you return an unused gift card within their return window. The refund typically takes 3 to 5 business days to appear on your statement. Check the retailer's return policy before you buy to confirm they accept returns on gift cards.
Can I use a credit card to buy a gift card for another credit card?
No. Retailers do not sell credit card gift cards or prepaid credit cards at checkout. You can buy Visa or Mastercard gift cards (which are prepaid cards, not credit cards), and you can use a credit card to buy them, but the rewards rules are the same — most cards exclude them from bonus categories.