While it’s rarely a good idea to redeem your credit card rewards to buy gift cards, you should maximize your purchases by paying for them with the right credit card.
Fortunately, plenty of cards offer bonus rewards at places like gas stations, grocery stores, and office supply stores that sell gift cards almost anywhere. Here are some of our favorites.
Best Cards to Buy Gift Cards
Each of these cards comes from a different issuer, so regardless of where your issuer preferences lie you’ll be able to find the right choice for you.
Let’s see how these cards compare.
Comparing the best cards for gift cards
| card | Category bonuses on merchants selling gift cards | Return on costs (based on TPG’s August 2024 assessment) | Welcome bonus |
|---|---|---|---|
| Inc. Business Cash Credit Card | 5% cash back (or 5 points per dollar) on the first $25,000 spent at office supply stores each account anniversary year | 5%-10.25% | Earn $350 after spending $3,000 on purchases in the first 3 months your account is open. Plus, earn an additional $400 after spending $6,000 on purchases in the first 6 months after account opening. |
| American Express Gold Card | 4 points per dollar on up to $25,000 per calendar year at US supermarkets; Then 1 point per dollar | 8% | Earn 60,000 bonus points after spending $6,000 on eligible purchases with your new card in the first six months. Plus, get 20% back statement credit on qualifying purchases made at restaurants worldwide in the first 6 months (up to $100 back). Offer ends 11/6. Conditions apply. |
| Bank of America Customized Cash Rewards Credit Card | 3% cash back (1% thereafter) on first $2,500 per quarter in combined purchases in the category of your choice | 3% | Earn a $200 cash bonus after spending $1,000 in purchases within the first 90 days of account opening. |
| Costco Anywhere Visa Card by Citi | 4% cash back on first $7,000 spent on eligible gas per year, 1% thereafter; 2% on all other Costco purchases. | 2%-4% | N/A |
Let’s take an in-depth look at the details of each of our top picks.
Imperial business cash
If your small business wants to buy gift cards for employee gifts, shop with them Ink Business Cash is a good idea.
Annual Fee: $0
Welcome offer: Earn $350 after spending $3,000 on purchases in the first 3 months your account is open. Plus, earn an additional $400 after spending $6,000 on purchases in the first 6 months after account opening.
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Why it’s great for gift card purchases: Ink Business Cash offers 5% back on office supply store purchases (up to $25,000 in annual bonus spending). Office supply chains like Staples are known to carry a large selection of gift cards — including cards for many retailers that don’t earn rewards with other cards, making gift cards a great way to earn rewards on those purchases.
Buying a gift card at an office supply store becomes even more attractive if you have another preferred Chase card. Then, your 5% back turns into 5 Ultimate Rewards points per dollar spent, which can be redeemed at a much higher value than cash back through Chase’s transfer partners.
In addition, the Ink Business Cash Credit Card is the best business credit card for office supplies on the market today.
To learn more, check out our full review of Ink Business Cash.
Amex Gold Card
Since then Amex Gold With a fantastic earn-back rate on US supermarket purchases (up to the first $25,000 in spending per calendar year), it’s a great option for buying gift cards.
Annual Fee: $325 (see rates and fees)
Welcome offer: Earn 60,000 bonus points after spending $6,000 on eligible purchases with your new card in the first six months. Plus, get 20% back statement credit on qualifying purchases made at restaurants worldwide in the first 6 months (up to $100 back). Offer ends 11/6. Conditions apply.
Why it’s great for gift card purchases: With Amex Gold, you’ll earn 4 points per dollar on the first $25,000 spent at US supermarkets each calendar year (1 point per dollar thereafter), resulting in an 8% return based on TPG’s August 2024 valuation.
Supermarkets are another great place to pick up a variety of gift cards. Just remember that superstores like Walmart and Target are not included in the supermarket bonus category.
Earning category bonuses on gift cards (especially when purchased at grocery stores) can be hit or miss, so keep an eye on the earning patterns on your cards.
To learn more, check out our full Amex Gold review.
Bank of America Customized Cash Rewards Credit Card
Annual Fee: $0
Welcome offer: Get a $200 cash reward bonus after spending $1,000 in the first 90 days of account opening.
Why it’s great for gift card purchases: With the Bank of America Customized Cash Rewards Card, you can choose which categories earn 3% back. This list includes drug stores, online retailers, gas stations, and home improvement stores, all of which are places where you can find gift cards.
You’ll also earn 2% back on grocery stores and Wholesale Club. There is a $2,500 cap on combined award spending per quarter (then 1%).
Online shopping is an especially attractive category because you’ll be able to earn cash back on digital gift cards from family member’s favorite online boutiques, Etsy shops, or other small businesses that can’t sell physical gift cards.
If you qualify for the Bank of America Preferred Rewards program, you can actually earn 3.75% to 5.25% back on your chosen bonus category, as well as 2.5% to 3.5% at grocery stores and wholesale clubs. Considering this card comes with no annual fee, it’s a great cash-back return for gift cards.
To learn more, check out our full review of Bank of America Customized Cash Rewards.
Costco Anywhere Visa by Citi
If Costco is your preferred place to buy gift cards, Costco Anywhere Visa There is a credit card that is right for you.
Annual Fee: $0 if you have a Costco membership
Welcome offer: no one
Why it’s great for gift card purchases: If you get gas at a place that also sells gift cards, you can earn 4% back on those purchases with the Costco Anywhere Visa (first $7,000 per year; then 1%). Additionally, Costco sells a variety of gift cards and you’ll earn 2% back on all Costco purchases.
Of course, it’s not as high as some of the other options on this list, but it’s worth mentioning.
The two downsides to this card are that you need to have a Costco membership to apply and you only get rewards once a year in the form of a rewards certificate.
To learn more, check out our full review of the Costco Anywhere Visa.
Can you buy gift cards with a credit card?
Yes, you can purchase gift cards with a credit card. Most retailers will accept them, but your issuer may or may not allow you to earn rewards for these purchases, so check the terms regarding gift card purchases on your account in advance.
Issuers are often discouraged from buying gift cards to meet the spending requirement for a welcome offer, so be careful here. In the worst case scenario, your welcome offer may be revoked or even your account Shut it down.
According to CNN, Americans have a collective $21 billion in unused gift cards. So, while your loved ones may not be making the most of their gift card redemptions every holiday season, you can do your research and rest in the satisfaction that you at least received your credit card rewards from purchases.
Why should I use a gift card?
The most obvious reason to buy gift cards is to give them to a friend or loved one, but there are also reasons why it might be a good idea to buy gift cards for yourself.
Gift cards work like cash at most retailers, so using the gift cards themselves will not earn rewards. Given that, you might be asking why I would suggest buying one to use. It is better not to use it Rewards credit card for your retail purchases to earn rewards?
Unfortunately, many retailers don’t fall into the general bonus category, which means you can only earn 1% or 1 point per dollar on those purchases. However, gift cards can be purchased at places that to do Earn rewards.
If you buy a gift card to Nordstrom or Bass Pro Shop at Staples with your Ink Business Cash, you’ll earn 5% or 5 points per dollar earned on that purchase instead of 1% or 1 point per dollar.
Should I use rewards to buy gift cards?
Many credit cards allow you to redeem your rewards for gift cards, but that’s rarely a good idea. When redeeming points or miles, you want to make sure you’re getting solid redemption value from each point or mile, and gift cards rarely give you the best reward value.
When it comes to transferable currencies viz With Amex Membership Rewards or Chase Ultimate Rewards, you typically get just 0.7 cents and 1.1 cents of value from each point. But your points are easily worth more than that when you max out each of the issuer’s transfer partner redemption options.
There is an exception to this. Some credit cards offer fixed-value rewards, such as the Bank of America Customized Cash Rewards Card shown above. With fixed-value credit cards, your rewards are the same amount no matter how you redeem them.
In that case, you can get the same value by purchasing a gift card as you would by traveling. Just keep in mind that if you’re using your rewards to purchase gift cards, you won’t benefit from the bonus rewards on your purchase.
Using the portal to redeem gift cards
Buying a gift card is like buying cash for a particular retailer, which means you may lose rewards when you redeem the gift card. However, there is a way to double-dip on gift card rewards: Online shopping portal.
Let’s say you use your Amex Gold to earn 4 points per dollar on Ulta Beauty gift cards purchased at your local US supermarket (on the first $25,000 in purchases per calendar year, 1 point per dollar thereafter). You can then redeem that gift card at Ulta.com through a shopping portal like Chase’s or Amex’s.
So, where you wouldn’t have earned any rewards for restocking your favorite concealer and haircare products by shopping in-store, you can earn bonus points through the respective shopping portal.
Bottom line
Gift cards make easy, great gifts for picky friends and family members, and they can also help you grow your own rewards and credit card strategy. Just make sure you use the best credit card to buy those gift cards and always remember to use an online shopping portal to redeem them whenever possible.
Apply here: Imperial business cash
Apply here: Amex Gold
Apply here: Bank of America customized cash rewards
Apply here: Costco Anywhere Visa by Citi
Related: Best Credit Cards for Target Shopping
For Amex Gold Card rates and fees, click here.