Best Credit Cards for Gift Card Purchases

Purchasing gift cards, whether for personal use like an Airbnb gift card for future travel or as a gift for others such as an Apple gift card, presents an opportunity to earn bonus rewards. Maximizing points per dollar spent or cash back on these transactions can accelerate progress toward travel goals. Several credit cards are recommended for their ability to enhance the value derived from gift card expenditures, even for those who spend substantial amounts annually on them. These selections also offer the potential to earn valuable welcome offers.

The Ink Business Cash® Credit Card is highlighted for offering 5% cash back, equivalent to 5 points per dollar spent, on purchases made at office supply stores. This bonus category is capped at $25,000 in spending per account anniversary year, making it particularly beneficial for larger gift card purchases if bought from retailers classified as office supply stores. The card carries a $0 annual fee, further increasing its attractiveness for reward maximization without an ongoing cost.

The American Express® Gold Card provides 4 points per dollar at U.S. supermarkets on up to $25,000 in spending per calendar year, after which the rate drops to 1 point per dollar. While its primary bonus categories are groceries and dining, supermarkets often sell a wide variety of gift cards. This card has an annual fee of $325. The Bank of America® Customized Cash Rewards credit card allows cardholders to choose a category for 3% cash back, which can be selected to align with gift card purchasing habits, such as online shopping or gas stations, depending on where gift cards are bought. This card also offers 2% cash back on grocery store and wholesale club purchases on up to $2,500 in combined choice category/grocery/wholesale club quarterly spending, and 1% on all other eligible purchases. The Costco Anywhere Visa® Card by Citi offers 4% cash back on eligible gas purchases, including those made at Costco gas stations, and on eligible travel purchases. It also provides 3% cash back on restaurants and 2% cash back on all Costco purchases, with 1% cash back on all other eligible purchases. The Citi Double Cash® Card offers a straightforward 2% cash back on all purchases, with 1% earned as you make purchases and another 1% as you pay them off. This flat-rate cash back structure makes it a reliable option for earning rewards on any spending, including gift cards, regardless of the merchant category.

These credit card options cater to different spending patterns and preferences, with issuers including Chase, American Express, Bank of America, and Citi. By strategically using these cards for gift card purchases, consumers can effectively leverage their spending to gain additional value through rewards and welcome bonuses.