Like the previous item, you can do this easily with a small test purchase. You should be sure that any large gift card transactions will count as regular purchases with the specific merchant and card you’re using, rather than cash advances.

This would not be ideal.Ĭash advances don’t earn rewards, and they’ll start accruing interest immediately at a very high rate. The same could be true for prepaid debit cards.

In some cases (which are probably rare), certain issuers may count gift card purchases or reloads as cash advances, rather than typical purchases. Some issuers may count gift card purchases as cash advances

So, your best bet is just to test it out (but you may want to try smaller amounts first). However, our team has used the Blue Cash Preferred Card to buy gift cards at certain grocery stores (like Wegmans) with no problem, and earned rewards. In those cases it might actually work fine, with rewards being earned, but you’ll have no official ground to stand on if it doesn’t work or the issuer has a problem with it.įor example, the terms of the Blue Cash Preferred® Card from American Express say: “Eligible purchases do NOT include fees or interest charges, balance transfers, cash advances, purchases of travelers checks, purchases or reloading of prepaid cards, purchases of gift card, person-to-person payments, or purchases of other cash equivalents.” Some credit card issuers have terms saying gift cards won’t earn rewards. Buying gift cards may not yield any points or cash back on your rewards credit card You may want to have a backup plan (like being able to get cash from a nearby ATM through a debit card) in case a specific store won’t let you use a credit card for the purchase.

“Some merchants may utilize other safeguards for large gift card purchases - like requesting a photo ID to ensure credit card payment details match your ID,” shares Kim Sobasky of the Retail Gift Card Association (RGCA).Īdditionally, some specific locations may have their own restrictions on buying gift cards, so just ask if they can be purchased with a credit card. While card issuers usually don’t have outright restrictions on purchasing gift cards, some stores may have specific guidelines Let’s explore some of the key points you should know before you buy gift cards. And you wouldn’t be alone if you did.Īccording to a Consumer Gift Card Preferences Study in 2018, 91% of consumers surveyed say they have purchased a gift card (not necessarily using a credit card), so it’s good to know the ins and outs of how gift cards work. Yes, you can use credit cards to buy gift cards at most retailers that offer them.

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