Yes, you can buy gift cards with a credit card at most retailers
Most stores, both online and in person, accept credit cards as payment for gift cards. You walk up to the register or add a gift card to your online cart, pay with your credit card, and leave with the card or a digital code. The transaction works the same way as buying anything else.
What matters more than whether you can is whether you should — and that depends on your credit card's rewards structure, your current balance, and how you plan to use the gift card itself.
Key Takeaways
- Credit card companies treat gift card purchases as regular transactions, so they count toward your spending total and may earn rewards points or cash back.
- Buying a gift card with a credit card you're carrying a balance on means you're paying interest on that purchase unless you pay off the card immediately.
- Some credit cards exclude gift card purchases from their rewards program, so check your card's terms before you buy.
- Buying gift cards with a credit card does not protect you the way a direct purchase does — if the gift card is lost or stolen, the credit card company typically won't reimburse you.
How credit card rewards work with gift card purchases
When you buy a gift card with a credit card, the purchase usually counts toward your rewards rate. If your card earns 2% cash back on all purchases, you earn 2% on the gift card. If it earns 5% on retail purchases, you earn 5% on the gift card purchase at a retail store.
Some cards, however, exclude gift cards from their rewards program. Read your card's terms or call the issuer before you buy. The exclusion is usually stated clearly in the rewards section of your cardholder agreement.
Gift card purchases also count toward any spending thresholds your card has — for example, if your card offers a bonus after you spend $500 in the first three months, a $100 gift card purchase moves you $100 closer to that threshold.
Interest charges if you carry a balance
If you already owe money on your credit card, buying a gift card adds to that debt. You'll pay interest on the gift card purchase at your card's current APR until you pay off the full balance — even if you never use the gift card itself.
This is true whether you buy the gift card to give to someone else or to use yourself. The credit card company doesn't distinguish between a gift card purchase and any other purchase. If your APR is 18% and you buy a $50 gift card while carrying a balance, you're paying interest on that $50 until the balance is gone.
Where you can and cannot buy gift cards with credit
Most major retailers accept credit cards for gift card purchases: grocery stores, department stores, restaurants, gas stations, and online retailers all take credit cards at checkout. You can buy physical gift cards in person or digital gift cards online.
Some smaller retailers or independent businesses may accept only cash or debit for gift cards, but this is uncommon. If you're unsure, call ahead or ask at the register before you try to pay.
Banks and credit card issuers themselves sometimes restrict gift card sales. A few banks won't let you buy gift cards with their credit cards, or they exclude certain retailers. Check your card's terms or contact your issuer if you're buying a gift card from a bank or financial institution.
Fraud and protection when buying gift cards with credit
Buying a gift card with a credit card does not give you the same protection as buying a product. If someone steals the gift card number or the physical card is lost, your credit card company typically won't reimburse you. The purchase itself is protected — you can dispute the charge if the store never gave you the card — but the card's value once it's in your hands is not.
If you buy a gift card online and never receive the code or card, you can dispute that charge with your credit card issuer. But if you receive the card and then lose it or it's stolen, the credit card company won't cover the loss. The gift card issuer might, depending on their policy, but many don't.
To reduce risk, buy gift cards in person when possible, keep the receipt, and store the card or code securely. If you're buying for someone else, consider delivering it directly rather than mailing it.
Tax reporting and gift card purchases
Buying a gift card with your credit card has no tax implications for you as the buyer. The purchase is not deductible, and you won't receive any tax documents from the credit card company.
If you buy gift cards as a business owner to give to employees or clients, that may be deductible as a business expense, but that's a question for your accountant or tax professional — it depends on your business structure and the amount you spend.
Frequently Asked Questions
Does buying a gift card with a credit card hurt my credit score?
The purchase itself doesn't hurt your score. What matters is whether you pay your credit card bill on time. If you buy a gift card and pay off the charge when your bill is due, there's no impact. If you carry a balance, your credit utilization ratio goes up, which can temporarily lower your score.
Can I use a credit card to buy a gift card for that same credit card?
No. Credit card companies don't allow you to buy a gift card for their own card using that card. You'd have to use a different payment method — another credit card, debit card, or cash. This rule exists to prevent people from cycling credit and inflating their spending artificially.
What happens if the gift card is never used?
You still owe the credit card company for the purchase. An unused gift card doesn't cancel the charge. You'll continue to pay interest on that amount if you're carrying a balance, even if the gift card expires or is never redeemed.
Can I return a gift card and get the money back on my credit card?
Most retailers won't refund gift cards once they're sold. Some will exchange an unused card for a different denomination or store, but a refund to your credit card is rare. Check the retailer's policy before you buy. If you do get a refund, it typically appears as a credit on your credit card statement within a few business days.