Yes, you can buy gift cards with a credit card at most retailers
You can use your credit card to buy gift cards in physical stores and online at most major retailers — Target, Amazon, Walmart, Best Buy, and others all take credit cards for gift card purchases. The transaction processes like any other purchase: you swipe, insert, or tap your card, and the gift card is yours to give or use.
However, some credit card issuers and individual retailers place restrictions on gift card purchases, and those restrictions matter for your rewards and your account. A purchase that looks normal at checkout might trigger a cash advance fee, earn zero rewards, or count against spending limits that affect your credit line. Knowing which restrictions explore to your card before you buy saves you money and frustration.
Key Takeaways
- Most credit cards allow gift card purchases, but some issuers classify them as cash advances and charge a fee plus higher interest rate.
- Gift card purchases typically earn zero rewards points or cash back, even if your card normally rewards all purchases.
- Visa and Mastercard gift cards purchased at a bank or money services store may be treated differently than retailer gift cards.
- Checking your card's terms before buying tells you whether you will pay a fee and whether the purchase earns rewards.
- If your card blocks gift card purchases, a debit card or direct payment method usually works as an alternative.
How credit card issuers treat gift card purchases
Your credit card issuer — the bank or financial company that issued your card — decides whether a gift card purchase counts as a regular purchase or a cash advance. A regular purchase is what you expect: you pay your normal interest rate (or no interest if you pay in full), and the purchase posts to your account like any other charge. A cash advance is different: you pay a cash advance fee (often 3 to 5 percent of the amount) plus a higher interest rate, usually starting when ready with no grace period.
Most major issuers treat retailer gift cards — Amazon, Target, Starbucks, Best Buy — as regular purchases. But some treat them as cash advances, and a few block them entirely. Visa and Mastercard gift cards purchased at a bank or money services store are more likely to be flagged as cash advances because they function like cash.
The only way to know for certain is to check your card's terms or call the issuer's customer service line. Ask directly: "If I buy a gift card with this card, will it be treated as a cash advance?" Write down the answer and the date you called. If you are charged a fee you were not told about, you have documentation to dispute it.
Gift card purchases and credit card rewards
Most credit cards earn zero rewards on gift card purchases, even if your card normally earns points or cash back on all purchases. This is a merchant category rule: the retailer codes the transaction as a gift card sale rather than a regular retail purchase, and your card's rewards rules exclude that category.
Some cards do earn rewards on gift cards, but this is rare and usually limited to specific retailers. For example, a card that partners with Amazon might earn bonus rewards on Amazon gift cards but not on Target gift cards. Check your card's rewards guide or call the issuer to ask which gift cards, if any, earn rewards.
If you buy a gift card expecting to earn rewards and the points do not post, contact the issuer within 30 days. Provide the transaction date and amount. Some issuers will manually add the points if the purchase should have may have access to; others will not. Either way, asking takes five minutes and costs nothing.
Retailer gift cards versus bank-issued gift cards
Retailer gift cards — issued directly by Target, Walmart, or another store — are almost always treated as regular purchases by credit card issuers. You buy them at the store or online, and the transaction posts like any other purchase at that retailer.
Bank-issued gift cards — Visa gift cards, Mastercard gift cards, or American Express gift cards purchased at a bank, credit union, or money services store — are more likely to be flagged as cash advances. These cards function like prepaid debit cards and can be used anywhere, which is why issuers treat them more cautiously. If you want to buy a bank-issued gift card, use a debit card or direct payment method instead of a credit card.
Digital gift cards (emailed or downloaded when ready) are treated the same way as physical gift cards by most issuers. The delivery method does not change whether the purchase is classified as a cash advance or regular purchase.
What to do if your credit card blocks gift card purchases
If your card declines a gift card purchase, the most common reason is that your issuer has flagged it as a cash advance and you have reached your cash advance limit. Your credit card agreement sets a separate limit for cash advances, which is often much lower than your overall credit limit. If you have used that limit, the card will decline until you pay down the cash advance balance.
Call your issuer's customer service number on the back of your card. Explain that you tried to buy a gift card and the transaction was declined. Ask whether the purchase was blocked because it was classified as a cash advance or because of another reason. If it is a cash advance limit, ask whether the issuer can temporarily increase your cash advance limit or reclassify the transaction as a regular purchase.
If your issuer will not help, use a different payment method: a debit card, a prepaid card, or direct payment from your bank account. These methods do not carry cash advance fees or limits. You lose any rewards you might have earned, but you avoid the fee and the higher interest rate.
Checking your credit card terms before you buy
Your card's terms and conditions document lists which merchant categories earn rewards and which are excluded. Gift cards may be listed explicitly, or they may fall under a broader exclusion like "financial services" or "money transfer." The terms also state whether cash advances are allowed and what fee applies.
You can find your terms online by logging into your card issuer's website or app. Look for a section called "Terms and Conditions," "Cardholder Agreement," or "Benefits Guide." Search the page for "gift card" or "cash advance." If you cannot find the information online, call the customer service number on the back of your card and ask a representative to read the relevant section to you.
Write down what you learn and keep it with your card information. When you are about to buy a gift card, you will already know whether to expect a fee or whether the purchase will earn rewards.
Frequently Asked Questions
Will buying a gift card hurt my credit score?
A gift card purchase itself does not hurt your score. It is treated like any other purchase and affects your credit utilization (the percentage of your credit limit you are using). If the purchase pushes your utilization above 30 percent, it may lower your score slightly, but only temporarily — your score recovers once you pay the balance down.
Can I use a credit card to buy a gift card for someone else?
Yes. You can buy a gift card with your credit card and give it to anyone. The card is not linked to your credit card, so the recipient can use it without any connection to your account or credit history.
What happens if I buy a gift card and then return it?
If you return an unused gift card to the retailer, the refund posts back to your credit card as a credit. If the purchase was treated as a cash advance and you paid a fee, the fee is not refunded — only the purchase amount. Contact your issuer if you believe the fee should be reversed.
Do I pay interest on a gift card purchase if I pay my balance in full?
No, if the purchase is treated as a regular purchase and you pay your full statement balance by the due date, you pay no interest. If it is treated as a cash advance, interest starts accruing when ready, even if you pay in full — cash advances have no grace period.
Can I buy a gift card with a rewards credit card and then use the gift card to buy something else to earn double rewards?
No. You earn no rewards on the gift card purchase itself. When the recipient uses the gift card to buy something, they earn rewards only if they are using their own rewards card — the gift card purchase does not create a second earning opportunity.