This is one of the most common questions that have been asked by the people who are planning to buy gift cards. However, the answer to this question is quite complicated but overall it’s a Yes! you can buy gift cards using your credit card but it’s not that simple as you are thinking because it involves various conditions and restrictions as well. If the same question is in your mind then here we have answered that query in this following post. Today, we are going to share some crucial information regarding the same, so the interested readers should read this post till the end to get complete information on the same.
Different Kinds of Gift Cards
If you are new to gift cards and don’t know about its kinds, there are mainly two types of gift cards, one is Retail or store-specific gift cards and the other one is Generic gift cards. Let’s check out the working of both the cards.
1. Retail or Store-Specific Gift Cards
This kind of gift cards can only be used at the selected store chain and is also known as “closed-loop” gift cards.
Plus Point: The best thing about these gift cards is that typically you don’t have to pay any associated fees with these cards.
Negative Point: The only thing negative about this card is its usability in a certain store or store chains. Other than those selected branded merchants, you can’t use these cards in another store. In addition, if the store goes out of business, the card value is also going to get loose.
2. Generic Gift Cards
Also known as General or “open-loop” gift cards and it can be used wherever the card’s network has been accepted. In addition, you can also get generic gift cards for all the most important card networks. Visa gift cards, Mastercard gift cards, Vanilla Visa gift cards, Vanilla Mastercard gift cards, among many, are some examples of these gift cards.
Plus Point: The vest thing about Generic Gift Cards is that the cardholders can use these gift cards anyplace that can accept the regular credit cards as far as the card’s network is accepted. Also, there are generally no usage fees for the person that has been using this gift card.
Negative Point: The cardholders of this gift card have to pay an associated fee which is typically between $2.95 and $6.95. The fees may vary based on the issuer and the denomination.
Which Is The Best Place To Buy Gift Cards?
Other than the specific stores or store chains where you can buy these gift cards, there are many other different stores where you can buy generic gift cards. These gifts cards can be purchased from Supermarkets & warehouse clubs; Gas stations; Grocery stores & supermarkets; Convenience stores; and even from the Drugstores as well.
Some of the well-known retailers from where you can buy these gift cards consist of Staples, Amazon, Walmart, Target, among many. In addition to the retail stores, you can also buy these cards from online gift card web portal such as GiftCards.com, Cardpool.com (can be used to buy and even sell unused gift cards), etc.
Can You Buy Gift Cards Using Your Credit Card?
In most of the cases, it is a Yes! You can buy gift cards using your credit card. But, in addition, there are some circumstances where you may face a little issue regarding the same. In order to understand this, you should understand the difference between a debit card and a credit card. A debit card is directly linked to your account savings, if you make any payment using this card, it will get deducted from your saving or current account. In this way, you can spend what you have in your bank account. However, the situation is quite different in credit cards as here you can spend money even before you have it in your account.
So, the Gift cards are more likely of a debit card which allows you to get the services through your existing balance. As soon as your funds are no more in the card, it will have no more value. However, there are rules & guidelines overriding the credit cards as well as gift cards usage; it’s most commonly natural to think if you can use one to buy the other one.
Points To Consider While Buying Gift Cards With A Credit Card
First of all, you all must take note that buying a gift card is more of a complex task and for that, you just need to know certain things that we have listed below:
- The one who wanted to buy gift cards by using a credit card can make it happen, however, in some of the cases you may possibly run into a problem buying a store-issued gift card.
- It’s not necessary that you can get gift cards very easily via credit card. There are many retailers who will not accept credit cards as a medium of payment of gift cards, or else, they will be asking you to provide extra ID in order to check against your credit card as well.
- While buying a gift card using a credit card, you must take note that you may possibly not earn any reward on your purchase, and it will also depend on the terms and conditions of your credit card that has been set by the card issuer.
It’s not like that, that the gift cards can’t be purchased using credit cards or there are many restrictions if you do the same. But if you planning to do that, you must be aware of certain things and about the frauds related to this. We have also mentioned all such important points that are related to this factor. Earlier, the cards were not used to have EMV chips, due to which many stores restrict buying gift cards via credit cards and that’s completely understandable as there was a higher risk of frauds. But now, many things have changed and therefore, now you can easily get your gift card while using your credit card.