Yes, you can buy gift cards with a Walmart credit card, but the rules depend on which card you have and what type of gift card you want
The Walmart credit card (issued by Capital One) works like any other credit card at checkout — you can use it to buy Walmart gift cards, third-party gift cards sold in Walmart stores, and digital gift cards through Walmart.com. The transaction posts as a regular purchase, and you earn rewards on it the same way you would on groceries or clothing.
The catch is that some people use gift card purchases to manufacture spending for rewards or to move debt around, and that strategy has real costs. A few specific situations — like buying gift cards to resell, or using a card you're trying to pay down — can work against your financial goals even though the transaction itself is allowed.
Key Takeaways
- Walmart credit cards can be used to buy Walmart gift cards, third-party gift cards, and digital gift cards at any Walmart store or on Walmart.com.
- You earn the same cash back or rewards on gift card purchases as you do on other purchases, depending on which Walmart card you hold.
- Buying gift cards with a credit card you're carrying a balance on costs you interest, which erases any rewards value.
- Using a gift card purchase to delay paying off a card or to manufacture spending for a sign-up bonus often costs more than the benefit is worth.
How rewards work when you buy a gift card
The Walmart Mastercard and Walmart credit card both earn cash back on purchases. If you hold the Walmart Mastercard, you earn 2% cash back on Walmart purchases (including gift cards) and 1% on everything else. The Walmart credit card earns 1% cash back on all purchases, including gift cards.
That cash back is real — it posts to your account and you can use it. But the math only works in your favor if you pay the full balance when the bill arrives. If you carry a balance, the interest you pay will be higher than any cash back you earned. For example, if you buy a $100 gift card and carry a balance at 22% APR, you'll pay roughly $22 in interest over a year, but you only earned $1 or $2 in cash back.
When buying a gift card with your credit card makes sense
The clearest case is when you were going to spend the money anyway and you can pay the card off in full. If you buy a $50 Walmart gift card with your Walmart Mastercard and pay the bill before interest kicks in, you've earned 2% cash back ($1) with no cost. That's a small gain, but it's a real one.
Buying a gift card for someone else also works the same way — you earn the rewards, and the recipient gets the card. You're not gaining anything extra by using the credit card instead of cash or a debit card, but you're not losing anything either if you pay it off when ready.
A third scenario is using a gift card purchase to meet a sign-up bonus requirement. If a new Walmart card offers $50 cash back after you spend $500 in the first three months, buying a $500 gift card counts toward that threshold. But only do this if you were already planning to spend that much in that timeframe — manufacturing spending just to hit a bonus usually costs more than the bonus is worth.
When buying a gift card with your credit card costs you money
The biggest mistake is buying a gift card while carrying a balance on the same card. The interest you pay will almost always exceed the rewards you earn. If you have $2,000 on your Walmart card at 22% APR and you buy a $100 gift card to earn $1 or $2 in cash back, you're paying roughly $44 in interest that month on the full balance. The gift card purchase didn't cause all of that interest, but it delayed paying down the balance that did.
Another costly pattern is buying gift cards to resell or to convert credit into cash. Some people buy Walmart gift cards with a credit card, then sell them on a secondary market at a discount to get cash. This is allowed, but the fees and discounts on resale sites usually eat up any rewards you earned, and you've now created a taxable transaction. The IRS treats gift card resale as income.
Using gift card purchases to avoid paying down debt is also expensive. If you're trying to reduce your credit card balance but you keep buying gift cards instead of paying the card off, you're extending the time you carry interest. The psychological trick of "I'm spending less because I'm using a gift card" doesn't change the fact that you charged it to a card with a 20%+ interest rate.
Walmart gift cards versus third-party gift cards at Walmart
Walmart sells two types of gift cards: Walmart gift cards (which work only at Walmart and Walmart.com) and third-party gift cards (for retailers like Amazon, Target, Best Buy, and restaurants). You earn the same rewards on both when you buy them with your Walmart credit card.
The difference is in how you use them. A Walmart gift card is a stored balance that you can spend on anything Walmart sells. A third-party gift card is a separate card you give to someone else or use elsewhere. From a rewards perspective, there's no advantage to one over the other — you earn cash back on the purchase either way.
Digital gift cards and online purchases
You can buy digital gift cards through Walmart.com with your Walmart credit card, and they work the same way as physical cards. The purchase posts when ready, you earn rewards on it, and the recipient gets the code by email. Digital gift cards are useful if you're buying last-minute or for someone who doesn't need a physical card.
The only difference is that digital gift cards can't be returned or exchanged once the code is sent, so make sure you have the right amount and the right recipient before you complete the purchase. Physical gift cards can be returned to a Walmart store if they haven't been used.
How to avoid common mistakes
Before you buy a gift card with your Walmart credit card, ask yourself: Am I carrying a balance on this card? If yes, pay it down first. The interest will cost more than any rewards you earn.
Second: Am I buying this gift card because I planned to spend the money anyway, or am I buying it to hit a spending target? If it's the latter, skip it unless the sign-up bonus is large enough to cover the interest you'd pay if you can't pay the full balance when ready.
Third: Will I actually use this gift card, or am I planning to resell it? If you're reselling, the fees and discounts will wipe out your rewards, and you'll owe taxes on the income. It's not worth the complexity.
Frequently Asked Questions
Do I earn rewards on gift card purchases with my Walmart card?
Yes. The Walmart Mastercard earns 2% cash back on Walmart purchases (including gift cards) and 1% on other purchases. The Walmart credit card earns 1% cash back on all purchases. The cash back posts to your account like any other reward.
Can I use a Walmart gift card to pay off my Walmart credit card balance?
No. A Walmart gift card is a stored balance you can spend at Walmart stores and Walmart.com on merchandise. It cannot be used to pay a credit card bill. You have to pay your credit card balance with cash, a bank transfer, or a check.
What happens if I buy a gift card and then return it?
If you return an unused physical gift card to a Walmart store, the refund goes back to the credit card you used to buy it. The cash back you earned on the purchase will remain in your account — it doesn't get reversed. Digital gift cards cannot be returned once the code is sent.
Does buying a gift card count toward my credit utilization?
Yes. When you charge a gift card to your Walmart credit card, it increases your balance and your credit utilization ratio (the amount you owe divided by your credit limit). High utilization can lower your credit score, so if you're carrying a balance, buying gift cards makes the problem worse.
Can I buy a gift card with a Walmart credit card if I'm in debt?
Technically yes, but financially no. If you're carrying a balance, the interest you pay will exceed any cash back you earn. Focus on paying down the balance first, then use the card for rewards once it's paid off.