Higher value gift cards from Visa and Mastercard have higher fees, while Amex has a flat fee of $3.95. There are usually no usage fees for the person using the gift card.Ĭons: There are fees associated with purchasing generic gift cards, usually $2.95–$6.95, depending on the issuer and the denomination. Just check to make sure the merchant accepts Visa, Mastercard, American Express, or Discover (whichever network logo is on your gift card). Pros: You can use these gift cards anywhere that accepts regular credit cards - as long as the card’s network is accepted. Vanilla gift cards of several varieties:.American Express gift cards (personal and business versions).

If a merchant accepts American Express credit cards, for example, it will also accept Amex gift cards. You can get generic gift cards for all the major card networks. Generic, general, or “open-loop” gift cards can be used anywhere the card’s network is accepted. Plus, who doesn’t love an Amazon gift card? (Read more on Amazon gift cards later in this article.) Generic Gift Cards If you want to give a gift card that offers more options without paying fees, you can find cards that include several brands like Darden Restaurants (Longhorn, Olive Garden, Yard House, and more) and Gap (Athleta, Banana Republic, Gap, Old Navy). Also, you’ll lose the value on the card if the store goes out of business (though usually there will be a notice to make sure you use up the balance). Pro: Usually there are no fees associated with these cards.Ĭons: You can only use these gift cards with their branded merchants, so you’ll want to make sure the recipient will shop at the relevant stores before giving it. These are also known in the card industry as “closed-loop” gift cards, and can only be used at their specific store or store chain. Read more What Is a Cash Advance? A Definition and Why You Should Avoid Them Different Types of Gift Cards Like the previous item, you can do this easily with a small test purchase. You should be sure that any large gift card transactions will count as regular purchases with the specific merchant and card you’re using, rather than cash advances. This would not be ideal.Ĭash advances don’t earn rewards, and they’ll start accruing interest immediately at a very high rate. The same could be true for prepaid debit cards. In some cases (which are probably rare), certain issuers may count gift card purchases or reloads as cash advances, rather than typical purchases. Some issuers may count gift card purchases as cash advances.So, your best bet is just to test it out (but you may want to try smaller amounts first). However, our team has used the Blue Cash Preferred Card to buy gift cards at certain grocery stores (like Wegmans) with no problem, and earned rewards. In those cases it might actually work fine, with rewards being earned, but you’ll have no official ground to stand on if it doesn’t work or the issuer has a problem with it.įor example, the terms of the Blue Cash Preferred® Card from American Express ( Review) say: “Eligible purchases do NOT include fees or interest charges, balance transfers, cash advances, purchases of travelers checks, purchases or reloading of prepaid cards, purchases of gift card, person-to-person payments, or purchases of other cash equivalents.” Some credit card issuers have terms saying gift cards won’t earn rewards. Buying gift cards may not yield any points or cash back on your rewards credit card.You may want to have a backup plan (like being able to get cash from a nearby ATM through a debit card) in case a specific store won’t let you use a credit card for the purchase. “Some merchants may utilize other safeguards for large gift card purchases - like requesting a photo ID to ensure credit card payment details match your ID,” shares Kim Sobasky of the Retail Gift Card Association (RGCA).Īdditionally, some specific locations may have their own restrictions on buying gift cards, so just ask if they can be purchased with a credit card. While card issuers usually don’t have outright restrictions on purchasing gift cards, some stores may have specific guidelines.There are a few key things to note before you buy gift cards: And you wouldn’t be alone if you did.Īccording to a Consumer Gift Card Preferences Study in 2018, 91% of consumers surveyed say they have purchased a gift card (not necessarily using a credit card), so it’s good to know the ins and outs of how gift cards work. Yes, you can use credit cards to buy gift cards at most retailers that offer them.

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