Yes, you can buy gift cards with a credit card at most retailers, but some issuers and merchants restrict it
You can use a credit card to buy gift cards at most major retailers, both in stores and online. Target, Amazon, Walmart, Best Buy, and most grocery chains accept credit cards for gift card purchases without question. The transaction posts to your credit card account like any other purchase, and you earn rewards on it the same way.
However, some credit card issuers and some merchants have placed restrictions on gift card purchases. A few card issuers code gift card buys as cash advances or exclude them from bonus categories. A smaller number of retailers — mostly convenience stores and some gas stations — won't sell gift cards to credit cards at all, only to debit cards or cash. Before you buy, it's worth knowing which restrictions apply to your specific card and the retailer you're using.
Key Takeaways
- Most credit cards treat gift card purchases as regular transactions and earn the same rewards rate as other purchases in that category.
- Some card issuers classify gift card buys as cash advances, which means no rewards, a higher interest rate, and an immediate fee.
- Certain retailers — particularly convenience stores, some gas stations, and a few regional chains — decline credit cards for gift card sales.
- Checking your card's terms or calling the issuer before buying prevents surprises like missing rewards or unexpected fees.
- Gift cards bought with a rewards card can be a way to earn points on spending you were already planning, but only if your card doesn't restrict them.
How credit card issuers treat gift card purchases
Most major credit card issuers — Chase, American Express, Discover, Capital One, Citi — treat gift card purchases as regular retail transactions. If you buy a gift card at a grocery store using a card that earns 3% on groceries, you earn 3% on the gift card purchase. If you buy one at a department store using a card that earns 2% on shopping, you earn 2% on that purchase. The transaction appears on your statement as a purchase, not a cash advance.
A smaller number of issuers code gift card purchases as cash advances. When this happens, you don't earn rewards, you pay a cash advance fee (usually 3% to 5% of the amount), and interest accrues immediately at the cash advance rate, which is typically higher than the purchase rate. American Express and Discover rarely do this, but some smaller issuers or store cards may. The only way to know for certain is to check your card's terms document or call the issuer's customer service line and ask directly: "Are gift card purchases coded as cash advances on this card?"
Which retailers won't accept credit cards for gift cards
Most large retailers accept credit cards for gift card purchases without restriction. This includes Target, Walmart, Best Buy, Amazon, most grocery chains, and most restaurant gift cards. You can buy them online or in person, and the transaction processes normally.
Some retailers do restrict credit card sales of gift cards. Many convenience stores (7-Eleven, Circle K, Murphy USA) sell gift cards only for cash or debit card. Some regional gas station chains have the same policy. A few smaller retailers or local chains may also decline credit cards for gift cards, though this is less common. If you're buying from a smaller or less common retailer, it's reasonable to call ahead or ask at checkout before you attempt the purchase.
Why some issuers and retailers restrict gift card purchases
Credit card issuers restrict gift card purchases for one reason: they want to prevent people from using credit cards to manufacture spending in order to hit sign-up bonuses or category thresholds without actually spending their own money. A person could theoretically buy a $5,000 gift card to a store they shop at anyway, meet a bonus requirement, then return the gift card. The issuer loses money on the bonus without the cardholder taking on real spending risk.
Retailers restrict gift card sales to credit cards for a different reason: they want to reduce fraud and chargebacks. If someone buys a gift card with a stolen credit card, the cardholder disputes the charge, and the retailer has already handed over the card code. Accepting only cash or debit cards reduces this risk, since debit card disputes are harder to win and cash transactions can't be reversed.
How to check your card's gift card policy before you buy
The fastest way to find out whether your card restricts gift cards is to call the issuer's customer service number on the back of your card. Ask: "Are gift card purchases coded as cash advances, or do they earn rewards like regular purchases?" The representative can tell you in under a minute.
You can also check your card's terms and conditions document, usually available on the issuer's website under your account or in the "disclosures" section. Search for "gift card" or "cash advance." If the terms don't mention gift cards specifically, they're almost certainly treated as regular purchases. If you're buying from a retailer you're unsure about, you can also ask a cashier or call the store's customer service line before you go.
Using rewards strategically when buying gift cards
If your card doesn't restrict gift card purchases and earns bonus rewards in a specific category, buying a gift card in that category is a straightforward way to earn rewards on spending you were already planning. If you use a 3% grocery rewards card and you were going to buy a $100 gift card to a restaurant anyway, buying it at a grocery store nets you 3 points or $3 in value, depending on your card's structure.
The key is that you should only do this if you were already planning to make that purchase. Buying gift cards specifically to hit a bonus threshold or to manufacture spending defeats the purpose of a rewards card and can trigger fraud detection on your account. Issuers monitor for this behavior and may freeze your account or revoke your bonus if they suspect it.
What to do if your card treats gift cards as cash advances
If your card codes gift card purchases as cash advances, you have two options: use a different card that doesn't, or buy the gift card with cash or debit instead. The cash advance fee and higher interest rate make it uneconomical to use a credit card for gift cards on these accounts, even if you earn rewards, because the fee and interest will exceed the rewards value.
If you discover this policy after making a purchase, contact the issuer and ask whether they can reclassify the transaction as a purchase rather than a cash advance. Some issuers will do this as a one-time courtesy, especially if you've been a customer for a while. It's worth asking, but don't count on it.
Frequently Asked Questions
Do I earn rewards on gift card purchases?
Usually yes, if your card doesn't restrict them. Most major issuers treat gift card purchases as regular retail transactions and apply the same rewards rate. However, some cards code them as cash advances, which earn no rewards and carry a fee. Check your card's terms or call the issuer to confirm.
Can I buy a gift card to a store and return it for cash?
No. Most retailers have policies that prevent gift card returns for cash refunds. You can exchange an unused gift card for a different one, but you cannot convert it back to cash. Some retailers allow store credit in place of a refund, but this is rare and varies by store.
Will buying a gift card hurt my credit score?
No. A gift card purchase is a regular transaction that appears on your statement and counts toward your credit utilization, but it doesn't affect your score differently than any other purchase. Your payment history and utilization ratio are what matter to your score.
What if a retailer won't let me use my credit card for a gift card?
Ask the cashier or call the store's customer service to confirm their policy. If they truly don't accept credit cards for gift cards, you'll need to use cash, a debit card, or buy the gift card online if that option is available. Some retailers have different policies for in-store versus online purchases.
Can I buy a gift card for someone else and have it count toward my sign-up bonus?
Yes, the purchase counts toward your bonus spending requirement. However, issuers monitor for patterns of gift card purchases used to artificially meet bonus thresholds. If you buy multiple large gift cards in a short period, the issuer may flag your account or deny the bonus. Use gift cards as part of normal spending, not as a strategy to hit bonuses.