Yes, you can buy gift cards with a Target credit card, but the rewards work differently than they do for regular purchases

You can use your Target RedCard (the store credit card) to buy gift cards at Target, both in-store and online. The transaction will go through without any block or restriction. However, the rewards you earn on that purchase depend on which type of Target RedCard you have and what kind of gift card you're buying.

If you have the Target RedCard Debit Card or the Target RedCard (the regular credit version), you'll earn 5% off your purchase when you buy a Target gift card. If you have the Target RedCard Mastercard, you'll earn 1% cash back instead. The key thing to understand is that buying a gift card is treated like any other purchase — the card doesn't penalize you for it, but you also don't get bonus rewards just for buying a gift card instead of merchandise.

Key Takeaways

  • Target RedCard holders can buy gift cards at checkout in-store or online without any restrictions or blocks.
  • The Target RedCard Debit Card and regular Target RedCard earn 5% off gift card purchases, the same rate as other Target buys.
  • The Target RedCard Mastercard earns 1% cash back on gift cards, which is lower than the 5% earned on in-store Target purchases.
  • Gift cards bought with a Target RedCard count toward your purchase total for rewards purposes, so you're not losing the benefit by choosing a gift card over merchandise.

How rewards are calculated when you buy a gift card

When you swipe your Target RedCard to buy a gift card, the rewards calculation is straightforward: the system treats it exactly like a regular purchase. If you're using the Target RedCard Debit Card or the standard Target RedCard, you get 5% off the full amount you're spending on the gift card. That means if you buy a $100 Target gift card, you pay $95.

This is different from some other retailers, where buying a gift card might be excluded from rewards or treated as a cash advance. Target doesn't do that. The gift card purchase counts as a regular transaction, and you earn the same rewards rate you'd earn on clothing, groceries, or household items.

The difference between Target RedCard types

Target offers three versions of its store credit card, and they have different reward structures. The Target RedCard Debit Card and the Target RedCard (the regular credit card) both give you 5% off all Target purchases, including gift cards. There's no difference between them in terms of rewards — the main difference is that the debit version pulls money directly from your bank account, while the credit version creates a monthly bill.

The Target RedCard Mastercard is different. It's a Mastercard you can use anywhere, not just at Target. At Target, it earns 1% cash back on purchases. Everywhere else, it earns 1% cash back as well. So if you use the Mastercard to buy a Target gift card, you're earning 1% cash back, which is less than the 5% you'd get with the other two cards.

If you're buying a gift card specifically to use later at Target, the Mastercard is the weaker choice. But if you're buying a gift card as a gift for someone else and you want to maximize your own rewards, the regular Target RedCard or the debit version will give you more back.

When buying a gift card with your RedCard makes sense

Buying a gift card with your Target RedCard is most useful when you're buying a gift for someone else and you want to earn rewards on your own spending. If you're buying a $50 gift card with the 5% RedCard, you're getting $2.50 back in savings — money that stays in your pocket, not the recipient's.

It also makes sense if you're planning to spend that gift card amount at Target anyway. Instead of buying merchandise now and a gift card later, you can buy the gift card first, earn the 5% discount, and then use it when you're ready. You're not losing anything by choosing the gift card route.

One scenario where it doesn't make as much sense: if you're buying a gift card for a store other than Target. You can't use your Target RedCard rewards on non-Target gift cards, so you'd be better off using a different card that offers rewards on gift card purchases or general spending.

Gift cards and credit card debt

If you're using a Target RedCard credit card (not the debit version) to buy gift cards, remember that you're creating a balance on your card that you'll need to pay back. The 5% discount is real money, but it doesn't mean you should buy more gift cards than you would otherwise just to chase the reward.

If you carry a balance on your Target RedCard, you'll pay interest on that balance. For most people, the interest charges will be much higher than the 5% discount you earned. So the math only works in your favor if you pay off the full balance when your bill comes due.

Buying gift cards online versus in-store

You can buy Target gift cards both ways, and the rewards work the same either way. In-store, you can buy physical gift cards at the register or customer service desk. Online, you can buy digital gift cards that are delivered by email, or you can order physical gift cards to be shipped to an address.

The 5% RedCard discount applies to all of these options. There's no penalty for buying online instead of in-store, and no bonus for one method over the other. The main practical difference is speed: a digital gift card arrives in your email within minutes, while a physical card takes a few days to ship.

Frequently Asked Questions

Does buying a gift card with my RedCard count toward my RedCard spending for other rewards?

Yes. If your Target RedCard has any spending thresholds or bonus categories tied to total spending, a gift card purchase counts toward that total. The transaction is treated like any other purchase.

Can I use my Target RedCard to buy gift cards for other stores?

You can use your Target RedCard to buy gift cards for other stores, but only if Target sells them. Target sells gift cards for many retailers (like Starbucks, Best Buy, and others), and you'll earn the same 5% RedCard discount on those purchases as you would on Target gift cards.

What if I buy a gift card and then return it?

If you return an unused gift card to Target, the refund will go back to your RedCard as a credit. The 5% discount you earned will also be reversed, so you'll be back to the original purchase price.

Do I earn RedCard rewards when someone uses the gift card I bought?

No. You earn rewards when you buy the gift card, not when it's used. Once the gift card is in someone else's hands, any purchases they make with it don't earn you additional rewards.

Is there a limit to how many gift cards I can buy with my RedCard?

Target doesn't publish a specific limit on gift card purchases per transaction or per day. However, if you're buying an unusually large amount of gift cards, Target's fraud detection system might flag the transaction for review. If that happens, you may need to contact Target customer service to confirm the purchase.