Yes, you can buy gift cards with a credit card at most retailers, but the transaction may not earn rewards and some issuers treat it differently than regular purchases.
Most major retailers — Target, Amazon, Walmart, Best Buy, grocery chains — accept credit cards for gift card purchases at checkout, online, or through their apps. The transaction will go through the same way a regular purchase does. However, your card issuer may not reward you for it the way they reward other spending. Some cards exclude gift card purchases from bonus categories or cap rewards at a lower rate. A few issuers flag gift card buys as cash-like transactions, which can trigger higher interest rates if you carry a balance.
The key difference is between what the retailer allows and what your card issuer rewards. A retailer's register will not stop you from buying a gift card with plastic. Your card's terms may simply not give you points, miles, or cash back on that specific transaction.
Key Takeaways
- Most retailers accept credit cards for gift card purchases, but your card issuer may not earn you rewards on the transaction.
- Some card issuers treat gift card purchases like cash advances, which means higher interest rates and fees if you carry a balance.
- Checking your card's terms document or calling the issuer before buying tells you whether that specific purchase will earn rewards.
- Buying a gift card with a rewards card that does not exclude the purchase can be a way to earn points on spending you were already planning to do.
How card issuers handle gift card purchases
When you buy a gift card, the transaction appears on your statement as a purchase from that retailer — not as a gift card purchase specifically. Your card issuer sees "Target" or "Amazon," not "gift card." Most issuers treat it as a regular retail purchase and apply whatever rewards rate applies to that merchant category.
However, some issuers have coded gift card purchases to exclude them from bonus categories. A card that offers 5% cash back on grocery purchases, for example, may not give you that 5% when you buy a grocery store gift card — even though you are buying it at the grocery store. The issuer's system recognizes the transaction type, not just the merchant. You can find this rule in your card's terms document under "exclusions" or "what does not earn rewards," though the language varies by issuer.
A smaller number of issuers classify gift card purchases as cash-like transactions. This classification matters if you carry a balance. Cash-like transactions typically start accruing interest immediately, with no grace period, and may carry a higher APR than regular purchases. Visa and Mastercard do not prohibit this practice, so it depends entirely on your specific card issuer's rules.
Which card issuers exclude gift card rewards
Major issuers handle gift cards differently. American Express, Chase, Discover, and Bank of America all have cards in their portfolios, and their policies vary by individual card rather than by issuer. A Chase card might exclude gift card purchases from a bonus category while another Chase card does not.
The most reliable way to know is to read your card's benefits guide or terms and conditions document. Search for "gift card," "exclusions," or "what does not earn rewards." If you cannot find the answer there, call the issuer's customer service line — the number is on the back of your card — and ask directly: "Do gift card purchases earn the same rewards as regular purchases in this category?" Write down the answer and the date you called.
Some issuers publish this information on their website under the card's full terms. Others only include it in the document you received when you opened the account. If you no longer have that document, you can request it from the issuer or view it through your online account.
Gift cards and cash advance fees
A cash advance is a loan against your credit line, not a purchase. It carries a separate fee (usually 3% to 5% of the amount) and a higher interest rate than regular purchases. Most gift card purchases are treated as regular purchases, not cash advances, so you will not pay a cash advance fee.
However, some card issuers do classify gift card purchases as cash-like transactions. If your card does this, you may see a cash advance fee on your statement even though you bought a gift card at a retail register. The fee would appear as a separate line item. This is rare but not unheard of, particularly with older cards or cards from smaller issuers.
If you are concerned your card might do this, ask the issuer directly: "Are gift card purchases treated as cash advances on this card?" If the answer is yes, you have the option to use a different card for gift card purchases or to buy the gift card in person with cash or debit instead.
Buying gift cards online versus in-store
The method does not change how your card issuer treats the transaction. Whether you buy a gift card at a register, through a retailer's website, or via their mobile app, the transaction posts to your account the same way. Your card issuer will not reward it differently based on the channel.
What does change is fraud protection and the speed of delivery. In-store purchases are immediate — you walk out with the card. Online purchases may take hours or days to deliver, and you receive a code via email rather than a physical card. Both are secure, but online purchases give you a digital record in your email, which can be useful if you need to dispute the transaction later.
Some retailers offer a small discount if you buy a gift card in bulk or through certain channels, but this is a retailer decision, not a card issuer decision. Your rewards rate from your credit card issuer remains the same regardless of how you buy.
Using rewards to buy gift cards indirectly
If your card issuer does not reward gift card purchases directly, you can sometimes use accumulated rewards to buy gift cards instead. Many card programs let you redeem points or miles for gift cards through their rewards portal. This is an indirect way to convert rewards into a gift card without buying one with your credit card.
For example, if you have a Chase card with Ultimate Rewards, you can redeem points for Amazon gift cards, restaurant gift cards, or other options through your Chase account. If you have an American Express card, you can redeem Membership Rewards points for gift cards from hundreds of retailers. The redemption rate varies — sometimes you get better value by redeeming for cash back or travel instead — so compare your options before you redeem.
This approach works well if you have already earned rewards and want to convert them. It does not help you earn rewards on the gift card purchase itself, but it does let you turn existing rewards into a gift card without spending additional cash.
Scenarios where buying a gift card with a credit card makes sense
If your card earns rewards on the retailer where you are buying the gift card, and those rewards are not excluded, buying the gift card is a straightforward way to earn points on spending you were already planning to do. If you know someone who shops at Target and your card earns 2% cash back on Target purchases, buying a Target gift card with that card earns you 2% on the amount.
This also works if you are buying a gift card for a retailer you do not shop at yourself but want to give as a gift. You earn rewards on your own card, and the recipient gets the full value of the gift card. You are not losing anything — you are earning rewards on a purchase you were making anyway.
The scenario where it does not make sense is when your card excludes gift card purchases from bonus categories or treats them as cash advances. In that case, you would earn no rewards or pay a fee, so using cash or a different card is the better choice.
Frequently Asked Questions
Will buying a gift card hurt my credit score?
No. A gift card purchase is a regular transaction that posts to your account like any other purchase. It affects your credit utilization (the percentage of your credit limit you are using), but only while the charge is pending. Once you pay your bill, utilization returns to normal. Buying a gift card does not change your payment history or credit behavior in any way that would harm your score.
Can I buy a gift card with a credit card if I have a balance?
Yes, you can make any purchase you want if you have a balance. However, if your card issuer treats gift card purchases as cash-like transactions, the new purchase may not get a grace period and could accrue interest immediately at a higher rate. Check your card's terms first, or ask the issuer whether gift cards are treated as regular purchases or cash advances.
Do I earn rewards on a gift card I buy and then use myself?
You earn rewards once, when you buy the gift card with your credit card (if your card rewards that purchase). When you use the gift card to buy something at the retailer, that transaction does not earn rewards because you are paying with the gift card, not with your credit card. The rewards come from the initial purchase only.
What if the gift card never gets used?
You still earned the rewards when you bought it. The rewards are yours regardless of whether the recipient uses the gift card. If the gift card expires unused, that is the recipient's situation, not yours — your rewards have already posted to your account.
Can I return a gift card and get my money back on my credit card?
Most retailers do not accept returns on gift cards once they have been purchased. Some will replace a lost or damaged gift card if you have the receipt, but they will not refund the purchase. If you need to reverse the transaction, contact your card issuer to dispute it, though they will likely direct you back to the retailer's return policy first.