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George Markov
George Markov

Best Rewards For Buying Gift Cards

The Blue Cash Preferred is a cash-back credit card, which is less valuable than earning Amex Membership Rewards points. But if you are a fan of cash-back rewards, 6% back on gift cards is as good as it gets, making the Blue Cash Preferred one of the best credit cards on the market today.

best rewards for buying gift cards


Yes, you can buy gift cards with a credit card. Most retailers will accept them, but your issuer may or may not let you earn rewards for this purchase, so make sure you check the stipulations regarding gift card purchases on your account beforehand.

According to CNBC, up to $3 billion worth of gift cards go unused every year. 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 on the satisfaction that you at least received your credit card rewards from the purchase.

Buying gift cards is kind of like buying cash for a certain retailer, which means you can lose out on rewards when you redeem the gift cards. However, there is a way to double dip on gift card rewards: online shopping portals.

Whether you earn credit card rewards from gift card purchases will depend on the card that you have. Check the terms and conditions to see if they mention gift card purchases not being eligible to earn rewards.

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.

Although gift cards may count towards spending thresholds on a credit card, we do not recommend buying gift cards to meet minimum spending requirements that will earn you a welcome bonus as card issuers frown on this practice.

Category gift cards allow you to make purchases with merchants in a specific category. The Everywhere family of Visa gift cards, for example, has categories such as Fashion, Dining, Fuel, Explore, Groceries, and more.

Certain gift cards are not limited to purchases with specific merchants but work with merchants that accept a particular payment processing network. You can purchase Visa, Mastercard, or American Express gift cards that may be used anywhere these payment processing networks are accepted.

Bottom Line: There are several different types of gift cards, including those that only work at a single merchant, those that work at several stores, and gift cards that can be used at any store that uses the same processing network as the gift card. Single-network gift cards such as Visa, Mastercard, and American Express gift cards charge a fee at the point of sale. Regardless of the type of gift card you purchase, prior to making the purchase, be sure to know exactly how and where the gift card can be used.

With elevated rewards of 4x Membership Rewards points for up to $25,000 in U.S. supermarket purchases each year, the Amex Gold card is the perfect card to purchase an occasional gift card.

Hot Tip: If your insurance company takes credit or debit cards, you may be able to purchase Visa or Mastercard gift cards at the supermarket, earn elevated rewards, then pay your insurance bill (which may normally result in just 1x earnings) with your gift cards.

The Blue Cash Preferred\u00ae Card from American Express is a stellar cash-back credit card for those looking to maximize every purchase they make.\nWith bonus categories like U.S. supermarkets, select streaming services, U.S. gas stations, and transit purchases, this card rewards you for the items you spend the most on in a big way! For those looking to earn up to 6% cash-back on their purchases, this could be the card for you!\n"},"title":"Pros & Cons","pros":"\r\n \t6% cash-back at U.S. supermarkets (up to $6,000 per year) and on select streaming services\r\n \t6% cash-back on select U.S. streaming subscriptions\r\n \t3% cash-back on U.S. gas stations and transit (including rideshares, parking, etc.)\r\n \t1% cash-back on all other purchases\r\n","cons":"\r\n \t$0 intro annual fee for the first year, then $95 annual fee (rates and fees)\r\n","title":"Card Highlights","welcomeBonus":" Earn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months. $0 intro annual fee for the first year, then $95. Buy Now, Pay Later: Enjoy $0 intro plan fees when you use Plan It\u00ae to split up large purchases into monthly installments. Pay $0 intro plan fees on plans created during the first 12 months from the date of account opening. Plans created after that will have a monthly plan fee up to 1.33% of each eligible purchase amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors. Low intro APR: 0% for 12 months on purchases from the date of account opening, then a variable rate, 18.74% to 29.74% 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 6% Cash Back on select U.S. streaming subscriptions. 3% Cash Back at U.S. gas stations and on transit (including taxis\/rideshare, parking, tolls, trains, buses and more). 1% Cash Back on other purchases. Get $7 back each month after using your Blue Cash Preferred Card to spend $12.99 or more each month on an eligible subscription to The Disney Bundle, which includes Disney+, Hulu, and ESPN+. Enrollment required. Terms Apply.","cardCategories":["id":107610,"text":"Credit Card Reviews","link":"\/credit-cards\/reviews\/","id":18,"text":"Best Cash Back Credit Cards","link":"\/credit-cards\/cash-back-credit-cards\/"],"rewardsCenter":"Redeem cash-back through your American Express account","financialSnapshot":["id":1,"text":"Foreign Transaction Fees: 2.7% of each transaction after conversion to US dollars."],"title":"More Reads","html":"Find the $300 Welcome Offer for the Amex Blue Cash Preferred Card [Current Public Offer is $250]Find The No Annual Fee Welcome Bonus Offer for the Amex Blue Cash PreferredBenefits of the Amex Blue Cash PreferredStreaming List for the Blue Cash PreferredAmex Blue Cash Everyday vs. Amex Blue Cash PreferredChase Sapphire Preferred vs Amex Blue Cash PreferredAmex Gold vs Blue Cash PreferredBest American Express Credit CardsBest Credit Cards for Groceries and SupermarketsBest Credit Cards for Bills and UtilitiesBest Credit Cards for CouplesBest Everyday Credit Cards"],"aprText":"0% intro APR on purchases for 12 months from the date of account opening, then a variable APR, 18.74% - 29.74%"})) With a nice welcome bonus and 6% cash-back at U.S. supermarkets (up to $6,000 in purchases each year; 1x thereafter), the Amex Blue Cash Preferred card presents a compelling argument for making it your everyday spending card.

Gas stations often run promotions on gift cards, including for their own brand, single-store gift cards, or Visa/Mastercard gift cards. Picking up a gift card when filling up your tank is an easy way to multiply your rewards. Note that not all gas stations will accept credit cards as payment for a gift card.

\n \n","bonusValuation":" UP's Bonus Valuation*: $960\n \n\n \r\n","disableCardArtLink":false,"accordions":["title":"Why We Like This Card","html":"The Citi Premier\u00ae Card is an excellent option for anyone looking for an all-around travel rewards credit card. The card helps you earn points fast with great 3x bonus categories such as restaurants, supermarkets, gas stations, airfare, and hotels. Plus, it offers access to airline and hotel transfer partners, doesn't charge foreign transaction fees, and has a reasonable annual fee!\n \n","title":"Pros & Cons","pros":"\r\n \t3x points at restaurants, supermarkets, gas stations, airfare, and hotel purchases\r\n \tAccess to Citi transfer partners\r\n \tAnnual hotel credit\r\n \tNo foreign transaction fees\r\n\r\n ","cons":"\r\n \t$95 annual fee\r\n\r\n ","title":"Card Highlights","welcomeBonus":"\r\n \tEarn 60,000 bonus ThankYou\u00ae Points after you spend $4,000 in purchases within the first 3 months of account opening\r\n \tEarn 3 Points per $1 spent at Restaurants and Supermarkets\r\n \tEarn 3 Points per $1 spent at Gas Stations, Air Travel and Hotels\r\n \tEarn 1 Point per $1 spent on all other purchases\r\n \tAnnual Hotel Savings Benefit\r\n \t60,000 ThankYou\u00ae Points are redeemable for $600 in gift cards when redeemed at\r\n \tNo expiration and no limit to the amount of points you can earn with this card\r\n \tNo Foreign Transaction Fees on purchases\r\n\r\n ","cardCategories":["id":107610,"text":"Credit Card Reviews","link":"\/credit-cards\/reviews\/","id":21,"text":"Best Travel Credit Cards","link":"\/credit-cards\/travel-rewards-credit-cards\/","id":55995,"text":"Best Welcome Bonus Offer Credit Cards","link":"\/credit-cards\/best-sign-up-bonuses\/"],"rewardsCenter":"Citi ThankYou Rewards\r\n\r\n ","financialSnapshot":["id":1,"text":"Foreign Transaction Fees: None"],"title":"More Reads","html":"Benefits of the Citi PremierAuthorized User Benefits of the Citi PremierChase Sapphire Preferred Card vs. Citi Premier Card [Detailed Comparison]Best Citi Credit CardsBest Credit Card Welcome Bonus OffersBest Travel Credit CardsBest Credit Cards for Groceries and SupermarketsBest Virtual Credit Cards"],"aprText":"20.74% - 28.74% Variable"})) Earning 3x ThankYou Points on gas purchases, air travel/hotels, and at supermarkets and restaurants makes the Citi Premier card a good choice for everyday purchases, including at gas stations.

Some cards offer bonus-earning categories that change quarterly. This can present unique rewards-earning opportunities. Here are just 2 of the best cards that offer quarterly bonus earnings in specific categories. 041b061a72




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