Can you buy a gift card with a credit card?

The versatile gift card is a go-to for many shoppers struggling to choose the perfect present for a loved one. Gift cards provide the recipient with the freedom to choose their own present - a real lifesaver for those hard-to-buy-for family members!

If you’re thinking of purchasing a gift card, you might wonder what your payment options are and whether buying on a credit card is a good idea.
In our guide, thimbl explores gift cards in more detail and discusses when you might consider using your credit card to buy one.

What exactly is a gift card?

A gift card is a physical or digital card, prepaid with an amount the recipient can spend.
Depending on the gift card you choose, they can be redeemed in places such as:

• shops
• restaurants
• cinemas
• experience days
• holidays

Some gift cards are limited to one specific store or company, such as John Lewis or Costa Coffee, while others, such as an All4One card, allow you to spend in a range of different participating shops.

How does a gift card work?

1. Choose the type of gift card you’d like to send.
2. You’ll pay for the value of the card upfront.
3. Once received, the recipient will need to activate the gift card before they can use it. Details of how to do this can usually be found on the back of the card or in the terms and conditions.
4. Once the card has been activated, the recipient can choose how they’d like to spend the money. Please note that many gift cards come with an expiry date, for example, within 12 months of either purchase or activation.

Can I use my credit card to buy a gift card?

Yes, you can usually use your credit card to pay for a gift card, either online or in-store.

Is it a good idea to use a credit card to buy a gift card?

It’s up to you to decide whether buying a gift card with your credit card is right for you.
It’s important to be aware that some credit card providers consider using your credit card to buy a gift card as a cash advance.
If you’re unsure whether this applies to you, you should check your credit card agreement or contact your provider directly.
Please be aware that a cash advance usually has a transaction fee, typically around 3%, and making this type of purchase could have a negative effect on your credit score.

On the other hand, buying a gift card with a credit card could offer you protection if the company you purchase from goes bust before your loved one has the chance to make use of it. We’ll talk about this in more detail in the next section.

What happens if the gift card company goes bust before the recipient has had a chance to use it?

If the company you bought the gift card from enters administration, you may lose the right to spend the balance or get your money back, although it’s a good idea to contact the administrator to discuss your options.

If you paid for the gift card using a credit card and the value is over £100, you could be covered by Section 75. You can start a Section 75 claim through your credit card – you’ll need evidence of your purchase, such as a receipt. Please note that the person who bought the gift card will need to make the claim, not the receiver.

Purchased a gift card under the value of £100, or using a debit card? You could still be protected by Chargeback.
You can find out more about Section 75 and Chargeback here.

Find out if you’ll be accepted before you apply for your thimbl. Credit Card

• For all credit levels, from poor to excellent
• Checking won’t affect your credit rating
• 48.9% APR Representative (variable)

Check my eligibility

Can I exchange a gift card for cash?

If you’ve received a gift card, you will not be able to exchange it for monetary value, although you could choose to sell it on a specialist website, such as Cardyard and Cards2Cash. Please note that when you sell a gift card for money, you might not get the full amount in cash.

Can I use my thimbl credit card to buy a gift card?

Yes, you can use your thimbl credit card to purchase a gift card, and this will not be considered a cash advance.
Again, please be aware that some providers do consider buying a gift card using your credit card to be a cash advance.

Check your eligibility for a thimbl Credit Builder Credit Card in just 60 seconds

The thimbl Credit Builder Credit Card comes with a starting credit limit between £200 and £2,000.

You can check your eligibility for a thimbl Credit Card if you:

• Are between the ages of 18 and 70;
• Are a UK resident with at least 1 year's UK address history;
• Have a monthly net income of at least £800;
• Have an active credit account that has been open for a minimum of 12 months; and
• Do not already hold a Zable credit card.

Zable is a trading name of Lendable Ltd.* Lendable Ltd is unable to consider applications from anyone who has declared bankruptcy or is in an Individual Voluntary Arrangement (IVA).

Checking your eligibility will not impact your credit score.**

Alternatives to using a credit card to pay for a gift card

If you’ve decided against using your credit card to pay for a gift card, there are other payment methods to consider, including a debit card and cash. The payment options available to you will depend on the retailer.

Important: be cautious of gift card scams

According to Report Fraud advice, gift card scams are on the rise, and it’s important to be aware of the signs to protect yourself and your money.
Below are some examples of gift card scams;

• An email or text from somebody posing as your bank, stating that you need to clear an unpaid expense. You will typically then be asked to apply for a gift card and share the code as payment. A legitimate company will never ask you to make a payment using a gift card.
• An out-of-the-blue communication from a credit provider saying that you’ve been accepted for a loan and need to send a gift card payment as ‘insurance’ or to release the money.
• A text or WhatsApp message from somebody claiming to be a friend or family member. They may tell you they’ve lost their phone and are using a friend’s phone to contact you before asking you to send them a gift card or money to help them ‘pay for a new phone’.
  If you receive this type of message, contact your loved one using their usual phone number and ask them whether they actually sent the text or not.

What to do if you’ve been a victim of gift card fraud

You can report any type of fraud, including gift card scams, to Report Fraud.
If you’ve shared your financial information with a suspected criminal, please contact your bank as soon as you can. They will listen with empathy and guide you through the steps you can take together to secure your account.
Being a victim of fraud is an unpleasant feeling, but there is nothing to feel ashamed of. Remember, this is not your fault; the fault lies with the criminals, not their victims.

Are you worried about money?

Organisations such as StepChange, MoneyHelper, Citizens Advice, and National Debtline offer free, confidential support on a range of money and debt topics.

*thimbl is a credit broker. The thimbl credit card is powered by Zable, a trading name of Lendable Ltd.

**If you choose to make a full application, a creditworthiness assessment will be carried out by Zable. This will consist of a hard search and a further check powered by Open Banking. A hard search will remain on your credit file for up to 12 months, and multiple hard searches within a short period of time could hurt your credit score. Any credit obtained upon successful application will be provided by Lendable Ltd.