Can You Buy Gift Cards With A Credit Card?

Gift cards are one of the best presents you can give to anyone. They are hassle-free and non-problematic. They do not come with the issues of alterations or exchanges. You may think about picking up a gift card as a nice present for your friends or family or just as a treat for yourself. You may also consider putting such purchases on your credit card to get rewards.

Yes, you heard it right. You can buy gift cards with a credit card. While you think this answers your question, “Can you buy gift cards with a credit card?” it is not the case. While you may purchase gift cards with your credit card for certain circumstances, it will not fetch you your desired rewards every time.

So, why should you buy gift cards with your credit card? Is it really a good idea? Well, stay with me till the end of the article, and we shall find out soon!

Why Should You Buy Gift Cards With Your Credit Card?

Let us first start by saying why it is a good option to buy gift cards with your credit card. There are multiple benefits that you may get. Therefore, it is something you must consider, keeping in mind the rewards you get.

Earn Points On Gifts

The most definite reason why you should want to purchase a gift card with a credit card is to be able to earn points or cash back when someone purchases with the gift card. Most of the merchants that sell these gift cards will let you pay for the gift card purchase with a credit card.

Expand A Bonus Category

Buying a gift card may as well be a great way to “expand” the bonus category. There are many credit cards that cover 5% of the rewards that are applicable to places like Amazon, Walmart, Target, office supply stores, and many more. All of these places offer gift cards, and using these gift cards at those merchants where you may earn 5% is a great way to improve the rewards you earn for the purchases that you would otherwise make anyway.

For instance, many stores for office supplies will offer you Starbucks gift cards. If you use a credit card to buy a drink from Starbucks, you may get 1% or 2% rewards. On the other hand, if you purchase a gift card from Starbucks, these rewards may double as a result of your purchase.

Take Advantages Of Anticipated Spending

Credit cards like Chase Freedom Flex or Discover it Cash Back offer quarter-based rotating bonus categories with enrollment in certain areas like home decor stores, gas stations, or grocery stores. At times, the timing of such bonus categories may not match what you planned to purchase, or maybe you just do not spend a lot on one of the promotions to increase the bonus rewards you get on $1,500 purchases. Purchasing gift cards could be a reasonable way to improve your spending on future purchases and get additional rewards.

If you are planning a home improvement project in the future, you may invest in a home improvement gift card when home improvement stores give a category bonus quarterly, and you may easily lock in a 5% cash back on that purchase.

Take Advantages Of Amex Offer Promotions

Many cards provide periodic promotions, like an increased cash back or a discount on certain benefits. If you hold an American Express card, you surely have come across multiple Amex Offers every time you log into your online account. Other banks like Chase and Citi offer the same kind of promotions.

If you ever come across any of these promotions for a merchant you frequently visit but you have no immediate plans in mind, you may just buy a gift card, and you may lock yourself in for any of these promotions.

Is It Really Fine To Buy A Gift Card With Your Credit Card?

Well, you just got many reasons why you should buy gift cards with your credit cards. However, it is still a skeptical decision, and you must be double sure if you want to purchase a gift card with your credit card. This is because there are some prominent reasons which may make you cautious while purchasing a gift card.

For beginners, gift cards will tie your money to certain merchants. When you buy a gift card, you convert cash, which you could use anywhere, into credit that can now only be used by a single merchant. This means you will have far less flexibility with what you are purchasing. If you buy gift cards speculatively, you will find yourself paying a relatively higher price from the merchant to be able to use the gift card.

In the worst case, if the store that associates itself with the gift card that you bought goes bankrupt. Then, you may end up just paying for a plastic card, which is of no use.

Second, gift cards do not come with the same customer protection as credit cards. If someone does any fraudulent activities with your credit card, there is a fair chance that you will not be the one paying the fine for the fraudulent activity. If someone rudely charges a purchase on a gift card you own, you will have limited recourse. In addition to that, using gift cards means giving away valuable advantages that credit cards have. These include purchase protection, return protection, or extended warranties.

Finally, a prominent reason why merchants are fond of gift cards is because they are subject to breakage. Simply put, breakage is the number of gift cards that were purchased; however, they were never really redeemed. If you are purchasing gift cards, be sure that you are keeping track of them and use them properly.

Frequently Asked Question !!! [FAQs]:

The Bottom Line

Now you know your answer to “can you buy gift cards with a credit card?”

Buying gift cards with your credit card can bring you many advantages. You earn rewards that you otherwise wouldn’t get. When you use a gift card strategically, you may increase the amount you get on a cashback or any such transferable reward. But you have to be sure enough to understand the terms and conditions of your credit card before you purchase a gift card.

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