Yes, you can buy gift cards with a Walmart credit card, but the rules depend on which card you have and what kind of gift card you're buying
The Walmart Credit Card and the Walmart Rewards Card both let you purchase gift cards in Walmart stores and online at Walmart.com. You can buy Walmart gift cards, gift cards for other retailers (like Amazon or Target), and Visa gift cards. The transaction counts as a regular purchase, so you'll earn rewards points if your card earns them, and the purchase goes toward your credit limit like any other charge.
The catch is that some gift cards—particularly those sold by third parties through Walmart's marketplace—may not earn rewards, and cash advances on gift card purchases are not allowed. If you're using the card to build credit history, buying gift cards works the same way as any purchase: the charge reports to credit bureaus, and your payment history matters.
Key Takeaways
- Both the Walmart Credit Card and Walmart Rewards Card allow gift card purchases in stores and online, and the transaction counts as a regular purchase.
- Walmart-branded gift cards and major brand gift cards (Amazon, Target, Best Buy) typically earn rewards points, but third-party marketplace gift cards may not.
- Gift card purchases do not count as cash advances and do not trigger cash advance fees or higher interest rates.
- The purchase amount counts toward your credit limit, so buying a large gift card reduces the available credit you can use elsewhere.
How gift card purchases report to your credit history
When you buy a gift card with your Walmart credit card, the charge appears on your statement just like a regular purchase. The transaction reports to the three credit bureaus (Equifax, Experian, and TransUnion) as part of your monthly account activity. This means the purchase affects your credit utilization ratio—the percentage of your credit limit you're using at any given time.
If you have a $1,000 credit limit and you buy a $300 gift card, your utilization jumps to 30 percent. Credit scoring models look at this ratio, so large gift card purchases can temporarily lower your credit score if they push your utilization above 30 percent. The effect reverses once you pay the balance down. Making your payment on time is what matters most for your credit history, regardless of whether the purchase was a gift card or groceries.
Which gift cards earn rewards and which don't
Walmart-branded gift cards always earn rewards at the standard rate for your card. If you have the Walmart Rewards Card, you earn 3 percent cash back on Walmart purchases, and a Walmart gift card counts as a Walmart purchase. Major retailer gift cards—Amazon, Target, Best Buy, and similar chains—typically earn rewards at the standard purchase rate (usually 1 percent for most cards).
Gift cards sold through Walmart's third-party marketplace may not earn rewards, depending on the seller and the card's classification in Walmart's system. Before you buy, check the product page to see whether rewards are listed. If the page doesn't mention rewards, contact Walmart customer service or ask a cashier in-store. Some gift cards for restaurants and entertainment venues also may not earn rewards, so it's worth confirming before you check out.
The difference between a gift card purchase and a cash advance
A gift card purchase is treated as a regular purchase, not a cash advance. This matters because cash advances carry different terms: they usually have a higher interest rate (often 3 to 5 percent higher than your purchase APR), they start accruing interest immediately with no grace period, and they charge a cash advance fee (typically 3 to 5 percent of the amount). A $300 cash advance could cost you $9 to $15 just in fees, plus interest from day one.
When you buy a gift card, none of that applies. You get the same grace period as any purchase (usually 21 to 25 days), the same interest rate if you carry a balance, and no cash advance fee. The Walmart credit card system recognizes gift card purchases as retail transactions, not cash-like transactions, so you're protected by standard purchase terms.
Using gift cards to manage your credit limit
Buying a large gift card reduces your available credit temporarily. If you have a $2,000 limit and you buy a $500 gift card, you have $1,500 left to use. This matters if you're close to your limit or if you're trying to keep your utilization low for credit-building purposes. Some people avoid large gift card purchases for this reason, especially if they're working to improve their credit score.
Once you use the gift card and the merchant processes the payment, the charge against your Walmart credit card is complete, and your available credit returns. If you buy a Walmart gift card and use it at Walmart, both transactions are separate: the credit card charge happens when you buy the card, and the gift card charge happens when you spend it. The credit card balance doesn't go down until you pay your Walmart credit card bill.
Where you can and cannot use your Walmart card to buy gift cards
You can buy gift cards at any Walmart store, at Walmart.com, and through the Walmart mobile app. In-store, the gift card section is usually near the customer service desk or in a dedicated aisle. Online, gift cards are listed under their own category or searchable by retailer name. You can also buy gift cards through Walmart's marketplace sellers, though as mentioned, these may not earn rewards.
You cannot buy gift cards through Walmart's grocery delivery services (like Walmart+) in most cases, and some third-party sellers on Walmart.com may not accept credit cards—they may require debit cards or other payment methods. If you're ordering online and the payment method is unclear, check the seller's payment policy before you add the item to your cart.
Common reasons a gift card purchase might be declined
A gift card purchase can be declined if your card is flagged for fraud, if you've exceeded your credit limit, or if the transaction triggers a security hold. Walmart's fraud detection system sometimes flags large or unusual purchases, especially if they're out of pattern for your account. If your purchase is declined, contact your card issuer (Walmart's customer service for the Walmart Credit Card) to confirm the transaction is legitimate.
Some gift cards—particularly those for gambling, cryptocurrency exchanges, or money transfer services—may be blocked by Walmart's payment system or by your card issuer's fraud prevention rules. These restrictions exist to reduce fraud and money laundering. If you're trying to buy a gift card and it's being declined, ask the cashier or check the online product page to see if there are known restrictions on that card type.
Frequently Asked Questions
Do I earn rewards on every gift card I buy with my Walmart card?
No. Walmart-branded gift cards and major retailer gift cards earn rewards at your card's standard rate. Third-party marketplace gift cards and some specialty cards (restaurants, entertainment) may not earn rewards. Check the product page before you buy, or ask customer service if the rewards status isn't listed.
Will buying a gift card hurt my credit score?
It can temporarily affect your score by raising your credit utilization ratio. If you buy a large gift card and it pushes your utilization above 30 percent, your score may dip slightly. The effect reverses once you pay the balance down. Paying on time is what matters most for your credit history.
Can I buy a gift card with my Walmart card and then return it for cash?
No. Walmart does not refund gift cards for cash, and attempting to do so would violate the card's terms. Gift cards are meant to be spent at the retailer they're issued for. If you change your mind, you can use the gift card yourself or give it to someone else.
What happens if I buy a gift card but never use it?
You still owe the balance on your Walmart credit card. The purchase doesn't disappear just because the gift card sits unused. You'll need to pay the charge on your monthly statement, regardless of whether the gift card is ever redeemed. Some gift cards have expiration dates or inactivity fees, so check the card's terms.
Can I use my Walmart card to buy gift cards for cash back or rewards?
You can earn rewards on gift card purchases (as described above), but you cannot use gift cards as a way to generate cash back or to "game" the rewards system. Buying a gift card and then returning it for cash, or buying gift cards repeatedly to cycle rewards, violates most card issuers' terms and can result in account closure or forfeiture of rewards.