Best Credit Cards For Purchasing Gift Cards
The best credit cards to use for gift cards are ones that let you rack up as much in rewards as you possibly can. With that being said, you should choose a credit card for gift cards carefully and based on the type of rewards you hope to earn.
Here are some of the top credit cards for gift card purchases, along with where they work best:
Dont Risk Your Account For Extra Points
One important thing to know about buying gift cards with your credit card is that you shouldnt overdo it just so that you can earn more cash back or travel rewards.;
If the card issuer believes that youre gaming the system, it can close all your accounts and blacklist you from ever opening another account with them in the future.
So whats considered gaming the system and whats not? Thats all up to the discretion of the card issuer, but here are two examples to illustrate the difference:
- Jim shops at Whole Foods anyway, so he picks up a $100 gift card twice a month at an office supply store, where his card earns five points per $1. This is a savvy way to earn 1,000 points, and its unlikely to set off any alarm bells with his card issuer.
The bottom line is that a gift card purchase here and there wont be an issue, and it can help you score some extra points. Its when consumers manufacture large amounts of spending that card issuers take notice and potentially decide to get rid of those clients.
For that reason, you should stick to buying gift cards that you plan to use. The last thing you want is to lose your credit card just because the card issuer believes you were gaming its rewards program.
What To Be Prepared For When You Buy Gift Cards With A Credit Card
While youll usually have no trouble using your credit card to buy gift cards, once in a while you may run into a few hiccups. Here are a few common instances to watch out for:
You may be asked for your photo ID.
Some stores will ask that you show a matching ID when using a credit card to buy gift cards. By matching a name and face to the credit card, stores make it more difficult for people to use stolen cards for these transactions.
The transaction may be declined due to store-specific policies.
You could run into any number of responses at the checkout counter:
- A credit card ban may be implemented throughout all stores in a chain.
- You may even get unlucky and be matched with a clerk who mistakenly tells you the wrong store policy.
The easiest way around these roadblocks? Try a different store. If youre feeling lucky, you could try the transaction again with another clerk at the same store.
Your card issuer may flag the transaction.
In this case, the transaction will be halted, and youll need to verify on your mobile device that you initiated the purchase. If the notification comes quickly enough, you may be able to proceed with the transaction at the counter. Otherwise, youll need to cancel the purchase and try again after youve verified it with your issuer.
One way to get around this limitation is by carrying a backup card. This card might not offer the rewards you were hoping for, but it may save you from having to try the transaction again.
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Making A Purchase With Your Visa Gift Card
- What if I change my mind and want to cancel a purchase?
-
If a merchant cancels a purchase transaction for you, it may take three to seven business days for the cancellation to show up on your Visa Gift card record and for the funds to be credited to your card and available for use. Check the balance on your card, either online or by phone, to see when your cancelled purchase transaction has been processed. Refer to the back of your card for the web site address/phone number of the financial institution that issued your card.
- Why was my Visa Gift card declined?
-
- Your card may have expired. Check the expiry date printed on the front of your card. ;In this case, let the merchant know how much remaining balance you have on your card. The merchant may split the transaction and allow you to pay for part of your purchase with the Gift card, and then the remaining part of your purchase with another form of payment, such as a credit, debit or cash.;
- Your remaining card balance may be less than the value of the item you wish to purchase.
- Merchants who only possess a manual imprint machine cannot accept Gift cards which have the phrase “ELECTRONIC USE ONLY” printed on the front of the card.
- Some internet merchants use fraud protection software that may decline a Gift card purchase transaction.
- Your card may not be activated or registered yet. Follow the activation and registration instructions that came with the card, or contact the card issuer
Can You Earn Credit Card Points From Gift Card Purchases
by Lyle Daly | Sept. 20, 2019
Many or all of the products here are from our partners. We may earn a commission from offers on this page. Its how we make money. But our editorial integrity ensures our experts opinions arent influenced by compensation. Terms may apply to offers listed on this page.
Gift card purchases could be a great way to score extra rewards points, but it depends on your credit card.
Gift card purchases could be a great way to score extra rewards points, but it depends on your credit card.
Everyone who has a rewards credit card wants to maximize what they earn back. For those who think a little outside the box, this can lead to the idea of buying gift cards to earn more rewards.
The logic behind this strategy is that many earn a higher bonus rate at specific types of stores, so you could buy a gift card at a store where youll earn bonus rewards, and then use the card elsewhere.
Lets say you have a card that earns five points per $1 at office supply stores and only one point per $1 at grocery stores. You could use that card for a $100 purchase at the supermarket and earn 100 points. Or, you could buy a $100 supermarket gift card for yourself at an office supply store and earn 500 points.
It seems like a smart way to earn more points. The only question is whether it works.
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Getting More Rewards When Buying Gift Cards
While you may not be guaranteed rewards when buying gift cards , in most cases it will likely work out fine. Here are some of the best credit cards for buying gift cards, offering rewards at common gift card sources:
- American Express® Gold Card : 4X points at U.S. supermarkets , and 4X points at restaurants, 4x points at Uber Eats
- Blue Cash Preferred® Card from American Express : 6% cash back at U.S. supermarkets , 3% back at U.S. gas stations
- Blue Cash Everyday® Card from American Express : 3% cash back at U.S. supermarkets , 2% back at U.S. gas stations
- Chase Freedom Flex : 5% rewards rotate quarterly; may include grocery stores, gas stations, drug stores, and Amazon
- Discover it® Cash Back : 5% rewards rotate quarterly; may include grocery stores, gas stations, Amazon, Target, and Walmart
- Citi® Double Cash Card 18 month BT offer : 2% cash back everywhere you shop
Visa Prepaid Gift Cards
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Can You Purchase Gift Cards With A Credit Card
You can buy gift cards with a credit card, in store and online, but there are a few things you might want to consider. First, any purchase made on your credit card will attract interest unless you pay off the balance quickly, so your $10 gift card could quickly end up costing you a lot more. Plus, some credit card issuers also charge an additional fee for buying gift cards, so the value on the card might end up being much less than it cost you.
Prepaid Cards Vs Gift Cards: An Overview
Prepaid cards and gift cards are both pieces of plastic that can be used to make purchases. They make popular presents as well: A versatile way to give a recipient the funds to buy whatever they like that seems safer and a touch classier than a wad of cash, and more convenient than a personal check. The biggest difference between the two reflects their permanence: prepaid cards can be reloaded and used indefinitely, while gift cards can generally only be used until the dollar amount on them is exhausted.
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Make Sure Your Visa Gift Card Is Activated And Ready
First, make sure the gift card has been activated . You might have received a gift receipt or a card holder confirming its activated status, but you can also just call the phone number on the back of the card.
Next, check the card’s balance. This is especially important if you have already used it, but as gift cards often have activation fees, that $50 card may actually have a $49 balance. You’ll need to know the exact dollar and cent number, so don’t skip this step.
Visa Gift Cards At Giftcardscom
Giftcards.com is a great place to buy Visa gift cards if you 1.) are crunched for time and 2.) want to reduce your out-of-pocket expenses. Many cash back portals, including Yazing and TopCashBack, offer cash back at Giftcards.com.
My preference in Yazing, which pays out faster and does a better job of tracking. Ive never once had an issues with order tracking through Yazing. A few readers have complained to be about TopCashBack.
A $2,500 gift card purchase will cost you a total of $17.20 when you factor in all fees and 1% cash back from Yazing. In other words, youll spend $6.88 per $1,000.
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Can You Buy Gift Cards With A Credit Card
In the majority of cases, you can buy gift cards with a credit card. But there are some occasions where you might run into a bit of trouble.
Just to make sure we’re starting out on the same page, let’s do a quick recap on the differences between a debit card, a credit card, and a gift card. A debit card works like liquid cash, allowing the user to spend what they have in the bank, and no more. But with a credit card, you can spend money before you have it up to the cap that’s known as your .
Gift cards, of course, work similarly to debit cards, letting you draw down an existing balance. The main difference is that instead of being connected to a bank account like your debit card, the balance on your gift card has been prepaid by the gifter. Once you’ve exhausted the funds, the card has no more value.
But since there are rules governing the use of credit cards and gift cards, it’s perfectly natural to wonder if you can use one to purchase the other.
Chase Freedom Unlimited: Best For Drugstores
The Chase Freedom Unlimited® starts you off with a $200 cash bonus when you spend $500 within three months of account opening. You also earn at least 1.5 percent back on all purchases, 5 percent back on travel booked through Chase Ultimate Rewards, 5 percent back on Lyft purchases , 3 percent back on dining and drugstore purchases and 1 percent back on other purchases. No annual fee applies.
Why this card is ideal for gift cards: The Chase Freedom Unlimited lets you earn 3 percent back when you buy gift cards from drugstores.
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Visa Gift Card Security
At Gift Card Granny, not only do we make it our mission to save you money, but we understand that your privacy is of the utmost importance.
When you buy a Visa gift card online from our site, rest assured that youll receive the correct gift card with the promised balance through a secure order. We will also protect your personal information during the transaction. This includes any sensitive details and data.
For inquiries about the security of your personal information, contact our customer service team. For more information on why and how we collect and store personal data, please see our privacy policy.
How To Avoid Cash Advances When Buying Gift Cards With Your Credit Card
If youre worried about cash advances, call your card issuer and try these strategies:
- Ask if your gift-card purchase will code as a purchase or cash advance.Your issuer may be able to tell you outright if youll need to worry about cash advances.
- Turn off cash advances for your credit card.If your issuer allows this, any cash advances will simply be declined when you use your credit card for them.
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Video Transcript: Visa Gift Cards How They Work
Hi, Im Shelley Hunter, Gift Card Girlfriend here at Gift Cards.com, and heres what I love the most about Visa gift cardsthey can be used anywhere in the U.S. Visa debit cards are acceptedwhich to me, means pretty much everywhere. From little mom and pop restaurants to national retailers, if a Visa debit card is accepted, then the gift card will be too.
Heres a tip
More About Using Prepaid Gift Cards Through Paypal
Can I use prepaid gift cards to make a purchase using PayPal?
Yes. Anywhere in the U.S. where PayPal is accepted you can use prepaid gift cards that have a Visa®, MasterCard®, American Express®, or Discover® logo on it. Please note that this doesnt apply to merchant-specific gift cards, which do not have a Visa®, MasterCard®, American Express®, or Discover® logo on them.
How do I use prepaid gift cards using PayPal?
Just like any other credit or debit cards. No difference at all!
For PayPal members, you can simply add prepaid gift cards to your wallet then start using them during checkout – just like any other credit or debit cards.
For users without PayPal account, you can just enter the card information during checkout in the same way you would do with credit or debit cards.
Can prepaid gift cards used for all services and products through PayPal?
Prepaid gift cards can be used to make payments for any product or service except for recurring payments or reference transactions.
This is because due to the nature of prepaid gift cards, they can become low in balance over time to cover the recurring amount. In order to protect our members from unintended service interruption, prepaid gift cards cannot be used for payments automatically pulled from PayPal accounts.
Im using a prepaid gift card, and Im getting a declined message.
You may also get an error message if your prepaid card was not issued in the U.S. or if you are trying to buy from an international merchant.
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How Can I Use A Credit Card To Improve My Credit Score
Paying your credit card on time and not going over your credit limit shows that you can use credit responsibly.
Its also a good idea to keep your account balances below 35% of your available credit. For example, if you have a credit card with a $1,000 limit, try to keep the outstanding balance below $350.
About Visa Gift Cards
Visa is the world’s most widely-accepted credit card company. They help over 200 countries connect people, governments, businesses and financial institutions. From financial inclusion to advancing digital currency, Visa offers its consumers and clients secure and cutting edge solutions to their financial needs.
Get the best Visa gift card deals when you shop Gift Card Granny. We take pride in our customization options, ease of ordering and speed of delivery. You can also save on the go with our mobile app!
Send a prepaid Visa gift card to anyone, for any occasion. Simply select a traditional plastic gift card or an eGift card that the recipient can download for immediate use. Usable to make purchases on anywhere* that accepts Visa as a form of payment.
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