Yes, you can buy gift cards with a Walmart credit card, but the type of card and the gift card you choose matter
You can use the Walmart credit card (either the Walmart Mastercard or the Walmart Store Card) to buy gift cards at Walmart registers, online at Walmart.com, and through the Walmart app. The transaction processes like any other purchase. However, some gift cards carry restrictions that affect how you can use them or whether you earn rewards, and a few categories of gift cards cannot be purchased with credit at all.
The key limitation is that Walmart does not allow credit card purchases of certain types of gift cards—specifically, prepaid cards like Green Dot or NetSpend, and gift cards issued by other retailers when bought through Walmart's marketplace sellers. If you are buying a Walmart gift card or a third-party gift card directly from Walmart (not a marketplace seller), your Walmart credit card will go through without issue.
Key Takeaways
- Walmart credit cards can purchase Walmart gift cards and most third-party gift cards sold directly by Walmart, but not prepaid debit cards or marketplace seller listings.
- Rewards on gift card purchases depend on your card type: the Walmart Mastercard earns cash back on all purchases, while the Walmart Store Card earns 5% back only on Walmart purchases.
- Buying a gift card with credit does not change the gift card's expiration date or terms—it is treated as a standard retail purchase.
- If a gift card purchase is declined, the issue is usually that you are buying from a marketplace seller rather than directly from Walmart, or attempting to purchase a prepaid card.
How Walmart processes gift card purchases with credit
When you buy a gift card with your Walmart credit card, Walmart treats it as a regular merchandise purchase. The transaction posts to your account immediately, and the gift card is activated at the register or upon checkout online. You receive a receipt showing the purchase amount, and your credit card statement will list it as a Walmart purchase.
The purchase counts toward your credit utilization ratio—the amount of your available credit you are using—just like any other charge. If you buy a $500 gift card and your credit limit is $1,000, your utilization jumps to 50%. This affects your credit score in the short term, so buying large gift cards can temporarily lower your score if your utilization was already high.
Interest accrues on the gift card purchase if you carry a balance. If you do not pay off the full statement balance by the due date, the purchase amount will be subject to the card's standard APR, which varies by cardholder but typically ranges from 16% to 24% for the Walmart Store Card and 15% to 24% for the Walmart Mastercard.
Rewards and cash back on gift card purchases
The Walmart Mastercard earns 1% cash back on all purchases, including gift cards, with no category restrictions. This means buying a $100 gift card earns you $1 in cash back. The cash back posts to your account monthly and can be redeemed as a statement credit, transferred to a bank account, or used at Walmart.
The Walmart Store Card earns 5% cash back on Walmart purchases, but gift cards are treated as Walmart purchases regardless of what the gift card is for. So a $100 Walmart gift card earns 5% back, but a $100 Amazon gift card bought at Walmart also earns 5% back on the Store Card. This makes the Store Card the better choice if you plan to buy gift cards regularly.
Some third-party gift cards sold at Walmart may be marked as non-may be able to access for rewards in rare cases, but this is uncommon. If you are unsure whether a specific gift card will earn rewards, ask at the register before you complete the purchase.
Gift cards you cannot buy with a Walmart credit card
Walmart explicitly blocks credit card purchases of prepaid debit cards and reloadable card products. This includes Green Dot, NetSpend, Vanilla Visa, and similar products. These are treated as cash equivalents by Walmart's payment system, and the restriction is designed to prevent fraud and limit the use of credit for obtaining liquid funds.
You also cannot use a Walmart credit card to buy gift cards from marketplace sellers on Walmart.com. Marketplace sellers are third-party vendors who list items on the Walmart platform. If you click on a gift card listing and the seller is not Walmart itself, the payment will be declined if you use a credit card. You can use a debit card, prepaid card, or other payment method for marketplace purchases, but not Walmart credit.
Physical gift cards sold in Walmart stores are always sold directly by Walmart, so this restriction does not apply to in-store purchases. The marketplace restriction only affects online shopping.
What happens to the gift card if your credit card is declined
If your Walmart credit card is declined during a gift card purchase, the transaction does not complete and no charge posts to your account. The gift card is not activated or given to you. The decline could happen for several reasons: insufficient available credit, a fraud alert on your account, an attempt to buy from a marketplace seller, or an attempt to purchase a prepaid card.
If the decline is due to insufficient credit, you can pay down your balance and try again, or use a different payment method. If it is a fraud alert, Walmart or your card issuer may contact you to verify the purchase. If you were trying to buy from a marketplace seller or a prepaid card, you will need to use a different payment method or purchase directly from Walmart instead.
Interest and fees if you carry a balance on gift card purchases
Gift card purchases are subject to the same interest and fees as any other purchase on your Walmart credit card. If you do not pay the full statement balance by the due date, interest accrues daily on the unpaid amount, including the gift card purchase. The daily rate is the card's APR divided by 365.
For example, if you buy a $200 gift card on a Walmart Store Card with a 20% APR and carry a $200 balance for 30 days, you will owe approximately $3.29 in interest. If you carry the balance for a full year without paying, interest will cost you about $40.
Late fees apply if you miss the due date, typically $25 to $35 depending on your account history. There are no additional fees specific to gift card purchases—they are treated as standard retail transactions.
Using a gift card you bought with credit
Once the gift card is activated, it works exactly like any other gift card. The fact that you bought it with credit does not change its terms, expiration date, or how you use it. If it is a Walmart gift card, you can use it at any Walmart store or on Walmart.com. If it is a third-party gift card, you use it according to that retailer's rules.
The gift card balance is separate from your credit card account. Spending the gift card does not pay down your credit card balance. If you bought a $200 gift card with your Walmart credit card and then spent the $200 gift card at another retailer, you still owe the full $200 on your Walmart credit card statement.
Gift cards do not earn rewards when you use them to make purchases. The rewards are earned only at the point of purchase—when you buy the gift card with your Walmart credit card.
Frequently Asked Questions
Does buying a gift card with a credit card count as a cash advance?
No. Gift card purchases are treated as regular merchandise purchases, not cash advances. Cash advances are when you withdraw cash from your credit card account, usually at an ATM or through a bank. Gift cards are physical or digital products, so they are coded as retail transactions and do not carry the higher fees and interest rates that cash advances do.
Can I buy a gift card with my Walmart credit card and then return it for cash?
Walmart does not accept returns of gift cards for cash refunds. Gift cards can only be returned for a refund if they are unused and returned within the return window (usually 14 days for in-store purchases). Once a gift card is activated and used, it cannot be returned. If you are looking to convert credit into cash, a gift card is not the way to do it.
What if I buy a gift card but never use it—do I still owe the credit card balance?
Yes. Buying the gift card charges your credit card immediately, regardless of whether you ever use the gift card. If you do not pay off the purchase, interest will accrue on the full amount. An unused gift card does not reduce what you owe on your credit card statement.
Can I use a Walmart credit card to buy gift cards for other people as gifts?
Yes. You can buy gift cards with your Walmart credit card and give them to anyone. The gift card itself has no restrictions based on who purchased it. Once activated, it can be used by whoever holds it.
Do I earn rewards if I buy a gift card and someone else uses it?
Yes. Rewards are earned when you purchase the gift card with your Walmart credit card, not when the gift card is used. So if you buy a $100 Walmart gift card with your Walmart Store Card and give it to someone else, you earn the 5% cash back on that $100 purchase, even though you did not spend the gift card yourself.