Yes, you can buy gift cards with a credit card at most retailers
You can use a credit card to buy gift cards at nearly every major retailer — grocery stores, department stores, gas stations, restaurants, and online marketplaces all accept credit cards for gift card purchases. The transaction processes the same way as any other purchase: you hand over your card, it gets charged, and you walk out with the card or receive it by email.
The catch is not whether you can do it, but whether you should, and what happens next. Some credit card issuers treat gift card purchases differently than regular purchases. They may not earn rewards, they may trigger cash advance fees, or they may be flagged as higher-risk transactions. Your card's terms determine this, not the retailer.
Key Takeaways
- Most credit cards allow gift card purchases, but check your card's rewards policy because many issuers exclude gift cards from bonus categories or earn rates.
- Some cards classify gift card purchases as cash advances, which charge a fee and start accruing interest when ready, even if you normally get a grace period.
- Visa and Mastercard gift cards bought with a credit card are treated as regular purchases, but store-branded gift cards may have different rules depending on your card issuer.
- If you are paying off a credit card balance, buying gift cards with that card delays your payoff and costs you more in interest.
How credit card issuers classify gift card purchases
Your card issuer decides whether a gift card purchase counts as a regular purchase or a cash advance. Most major issuers — Chase, Bank of America, American Express, Capital One — treat gift card purchases as regular transactions, meaning they go through the standard approval process and appear on your statement as a purchase.
However, some issuers or some card products classify gift card purchases as cash advances. A cash advance typically charges a fee (often 3 to 5 percent of the amount) and begins accruing interest when ready, with no grace period. You can find this information in your card's terms and conditions under "cash advances" or "what counts as a cash advance." If you are unsure, call the number on the back of your card and ask directly whether gift card purchases are treated as cash advances on your specific card.
The retailer where you buy the card does not determine this — your card issuer does. You could buy a Visa gift card at Target with one credit card and have it treated as a purchase, and with another card have it treated as a cash advance.
Gift cards and credit card rewards
Many credit cards exclude gift card purchases from earning rewards points, cash back, or bonus categories. This is especially common on cards with rotating bonus categories (like 5% back on groceries one quarter, gas the next). The card's terms usually state this explicitly, often in language like "gift cards and prepaid cards do not earn bonus rewards."
Some cards do allow gift card purchases to earn rewards at the standard rate. For example, a card that earns 1.5% cash back on all purchases may earn 1.5% on gift cards, but not earn the 5% bonus if gift cards fall into a bonus category that quarter. The only way to know is to read your card's benefits guide or call the issuer.
If you are buying a gift card specifically to earn rewards, check your card's terms first. Buying a $100 gift card to earn 1% cash back ($1) is a valid strategy, but only if your card actually allows it. If your card excludes gift cards from rewards, you are spending money to buy a card that earns you nothing.
Visa and Mastercard gift cards versus store-branded cards
Visa and Mastercard gift cards (the ones that work anywhere Visa or Mastercard is accepted) are treated as regular purchases by most credit card issuers. They are not classified as cash advances, and they usually earn rewards if your card allows it. You can buy them at grocery stores, pharmacies, or online.
Store-branded gift cards — Amazon, Target, Starbucks, Best Buy — are also treated as regular purchases by most issuers. However, some card companies have different rules for different retailers. For instance, a card might exclude Amazon gift cards from rewards but allow Target gift cards to earn rewards. This is rare, but it happens. If you are buying a store-branded card and rewards matter to you, check your card's terms or contact the issuer.
When buying a gift card with a credit card costs you money
If your card treats gift card purchases as cash advances, you pay a fee when ready and then pay interest on the balance. A $100 gift card with a 3% cash advance fee costs you $3 upfront, plus interest at your card's cash advance rate (often higher than the purchase rate) until you pay it off. This makes the gift card more expensive than it should be.
If you are carrying a balance on your credit card, buying a gift card adds to that balance and extends the time you pay interest. If you owe $2,000 and you buy a $100 gift card, you now owe $2,100, and you are paying interest on that extra $100 until it is paid off. The gift card itself does not earn you anything (in most cases), so you are paying interest to give someone else a card.
If your card excludes gift cards from rewards, you lose the opportunity to earn cash back or points. This is not a direct cost, but it is money you could have earned and did not. On a $500 gift card purchase, losing 1% cash back means losing $5.
How to avoid problems when buying gift cards
Before you buy a gift card with a credit card, check three things: whether your card treats it as a cash advance, whether your card earns rewards on it, and whether you are currently carrying a balance.
If your card treats gift cards as cash advances, use a different payment method — debit card, cash, or a different credit card that does not charge a cash advance fee. If your card excludes gift cards from rewards, the purchase is still fine, but know that you are not earning anything on it. If you are carrying a balance, consider whether the gift card is worth paying interest on. A $100 gift card is not worth paying $15 in interest to give it.
For large gift card purchases, call your card issuer before you buy. A five-minute call can tell you exactly how that card treats the transaction and save you from unexpected fees or lost rewards.
Frequently Asked Questions
Will buying a gift card hurt my credit score?
No. Buying a gift card is a regular purchase that appears on your statement and does not affect your credit score directly. However, if the purchase increases your credit utilization (the amount of your credit limit you are using), it could have a small negative impact on your score. This effect is temporary and goes away once you pay off the balance.
Can I buy a gift card with a credit card if I have a low credit limit?
Yes, as long as the gift card purchase does not exceed your available credit. If your limit is $500 and you have used $400, you can buy a $100 gift card but not a $200 one. The purchase counts against your available credit just like any other purchase.
What if my credit card is declined when I try to buy a gift card?
This usually means either you have reached your credit limit, the transaction was flagged as suspicious by your card issuer, or the retailer's payment system rejected it. Call your card issuer to ask if the transaction was declined by them. If it was flagged as suspicious, they can clear it and let you try again. If you have hit your limit, you will need to pay down your balance first.
Do I have to pay off a gift card purchase right away?
No. A gift card purchase is treated like any other purchase on your credit card. You can pay it off when ready, pay it with your regular monthly bill, or carry it as a balance (though you will pay interest). The choice is yours, but carrying a balance on a gift card purchase costs you money in interest.
Can I use a credit card to buy a gift card for myself?
Yes, but it is usually not a good idea. Buying a gift card for yourself with a credit card means you are paying interest on money you are spending anyway. It is simpler to just use the credit card directly at the retailer. The only exception is if your card earns bonus rewards on gift cards, which is rare.