A Guide to Using Your Digital Gift Cards Online

Quick answer

• Treat digital gift cards like a debit or credit card when checking out online.
• Look for the “Gift Card” or “Promo Code” payment option at checkout.
• Enter the card number, expiration date, and PIN/security code as prompted.
• Some cards require you to register them online before use.
• Check the card’s balance before making a purchase to avoid payment issues.
• Be aware of expiration dates and potential fees.

Who this is for

• Individuals who have received digital gift cards and want to use them for online purchases.
• Online shoppers looking for alternative payment methods to credit or debit cards.
• Anyone who wants to understand the process of redeeming digital gift cards with minimal hassle.

What to check first (before you act)

Your Goal and Timeline

What do you want to buy with this gift card? Is it for a specific item, a general shopping spree, or to offset a larger purchase? Knowing your goal helps determine if the card’s value is sufficient and if it aligns with the merchant’s accepted payment methods. Your timeline is also important; some gift cards have expiration dates, and you don’t want to miss out on using the funds.

Current Cash Flow

While a gift card is essentially free money, understanding your overall cash flow is still relevant. If you plan to use a gift card to cover a purchase that would otherwise come from your budget, it frees up that cash for other needs or savings goals. However, don’t let the presence of a gift card tempt you into overspending on non-essential items if your general cash flow is tight.

Emergency Fund or Safety Buffer

A gift card is not a substitute for an emergency fund. Ensure you have adequate savings for unexpected expenses like medical bills or job loss before considering using a gift card for discretionary spending. The purpose of an emergency fund is to provide a safety net, and gift cards are typically intended for specific purchases or as a treat.

Debt and Interest Rates

If you have high-interest debt, such as credit card balances, consider paying that down before using gift cards for non-essential purchases. The interest you pay on debt often outweighs any perceived savings from using a gift card. However, if the gift card is for a specific need or a planned purchase, and you have no high-interest debt, then using it is a straightforward decision.

Credit Impact

Using a digital gift card typically has no direct impact on your credit score, as it’s not a form of credit. However, if you use a gift card to make a purchase that you would have otherwise put on a credit card, and then pay off that credit card balance, it can indirectly support a good credit utilization ratio. Conversely, if you use a gift card and still need to use a credit card for the remainder, ensure you can manage the credit card payment responsibly.

Step-by-step (how to use a digital gift card)

1. Locate Your Digital Gift Card Details:

• What to do: Find the email or message containing your digital gift card. This usually includes a card number, an expiration date, and sometimes a PIN or security code.
• What “good” looks like: You have all the necessary information clearly visible and accessible.
• Common mistake and how to avoid it: Losing the email or message. Save the relevant details in a secure digital note or a dedicated folder to avoid this.

2. Check the Gift Card Balance:

• What to do: Most digital gift cards have a website or phone number listed for balance inquiries. Visit the issuer’s website or call the number provided.
• What “good” looks like: You know the exact amount of funds available on the card.
• Common mistake and how to avoid it: Assuming the balance is what you think it is. Always verify to prevent partial payments or declined transactions.

3. Identify the Merchant:

• What to do: Determine if the digital gift card is for a specific store or brand, or if it’s a general-purpose card (like Visa or Mastercard gift cards).
• What “good” looks like: You know precisely where you can spend the gift card.
• Common mistake and how to avoid it: Assuming a gift card is universally accepted. Many store-specific gift cards can only be used at that particular retailer.

4. Shop Online and Add Items to Your Cart:

• What to do: Browse the merchant’s website and add the items you wish to purchase to your online shopping cart.
• What “good” looks like: Your cart accurately reflects your desired purchases.
• Common mistake and how to avoid it: Adding items impulsively without checking if the gift card can cover the entire cost.

5. Proceed to Checkout:

• What to do: Once you’re ready to finalize your purchase, click on the checkout or payment button.
• What “good” looks like: You are taken to the payment information screen.
• Common mistake and how to avoid it: Not reviewing your cart for accuracy before proceeding, which can lead to accidental purchases.

6. Select Gift Card as Payment Method:

• What to do: Look for a payment option that says “Gift Card,” “Promo Code,” “Coupon,” or a similar designation. Some general-purpose gift cards might be entered under “Credit Card” or “Debit Card” after registration.
• What “good” looks like: You see a clear option to input gift card details.
• Common mistake and how to avoid it: Trying to enter a gift card number into a standard credit card field without checking the merchant’s specific instructions.

7. Enter Gift Card Details:

• What to do: Carefully input the digital gift card number, expiration date, and PIN or security code (often found on the back of a physical card, or in the digital details for an e-gift card).
• What “good” looks like: All fields are filled accurately with the correct information.
• Common mistake and how to avoid it: Typos in the card number or PIN. Double-check each digit before submitting.

8. Apply the Gift Card:

• What to do: Click the “Apply” or “Submit” button for the gift card. The system will then deduct the card’s value from your total.
• What “good” looks like: The total amount due is reduced by the gift card’s balance.
• Common mistake and how to avoid it: Forgetting to click “Apply” before finalizing the payment, which means the gift card value won’t be used.

9. Handle Remaining Balance (If Any):

• What to do: If your purchase total exceeds the gift card balance, you’ll need to cover the difference with another payment method (credit card, debit card, PayPal, etc.).
• What “good” looks like: The remaining balance is clearly displayed, and you can easily add another payment method to cover it.
• Common mistake and how to avoid it: Not having a backup payment method ready if the gift card doesn’t cover the full amount.

10. Confirm and Review Your Order:

• What to do: Before finalizing, review the order summary, including the items, shipping address, and payment breakdown.
• What “good” looks like: Everything is accurate, and you’re confident in the purchase.
• Common mistake and how to avoid it: Rushing through the final confirmation and missing an error in the order details or payment.

11. Save Your Digital Receipt and Any Remaining Balance Information:

• What to do: Save the order confirmation email and note down any remaining balance on the gift card, along with its expiration date.
• What “good” looks like: You have a record of your purchase and any leftover funds.
• Common mistake and how to avoid it: Discarding the confirmation or forgetting about any remaining balance, which can lead to losing those funds.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not checking the balance first	Transaction decline, partial payment, or confusion at checkout.	Always verify the exact balance online or by phone before shopping.
Forgetting about expiration dates	Loss of funds if the card is not used before it expires.	Note the expiration date and prioritize using the card soon after receiving it.
Assuming universal acceptance	Inability to use the gift card at your desired retailer.	Confirm the specific merchant(s) where the gift card can be used.
Typos when entering card details	Declined transaction or inability to apply the gift card value.	Carefully double-check card numbers, expiration dates, and PINs for accuracy.
Not clicking “Apply” at checkout	The gift card value is not deducted from the total, and you may pay more than intended.	Ensure you click the “Apply” or “Submit” button after entering gift card information.
Not having a backup payment method	Inability to complete a purchase if the gift card doesn’t cover the full amount.	Have a credit card or debit card ready to cover any remaining balance.
Losing the digital gift card details	Inability to access or use the gift card funds.	Save the gift card number, PIN, and expiration date in a secure, accessible place (e.g., a digital note).
Ignoring potential fees	The card’s usable balance may be less than the initial value due to inactivity or maintenance fees.	Read the terms and conditions for any potential fees associated with the gift card.
Trying to use a store card online at a different store	Transaction declined, leading to frustration and wasted time.	Only use store-specific gift cards at the designated retailer.
Not registering general-purpose cards	Inability to use the card for online purchases, especially if it requires activation.	Follow any instructions to register or activate general-purpose gift cards before attempting to use them online.

Decision rules (simple if/then)

• If the digital gift card is for a specific retailer, then you must use it on that retailer’s website or in their physical stores because the card is programmed for that merchant only.
• If the digital gift card is a general-purpose prepaid card (like Visa or Mastercard), then you can likely use it anywhere those cards are accepted online, but check if registration is required first because some require activation.
• If the total purchase amount is more than the gift card balance, then you will need a secondary payment method because the gift card will only cover up to its available value.
• If you cannot find a clear “Gift Card” or “Promo Code” payment option, then check the merchant’s FAQ or customer service for instructions on how they handle gift card payments, as some may have unique processes.
• If the gift card has an expiration date, then plan your purchase to occur before that date to avoid losing the remaining funds because expired gift cards are typically non-redeemable.
• If you encounter an error when entering your gift card details, then re-verify the card number and PIN for typos and ensure you are on the correct payment portal because incorrect entry is the most common cause of errors.
• If the gift card was received as part of a promotion, then review the promotion’s terms and conditions for any restrictions on where or how it can be used because promotional gift cards may have specific limitations.
• If you are purchasing a significant item and the gift card only covers a small portion, then consider if using the gift card for this purchase is the best use of funds, or if it could be better applied to a smaller, more immediate need, because your overall financial goals should guide spending.
• If the gift card issuer provides a customer service number, then call them if you have persistent issues or questions about usage or balance because they are the ultimate authority on their product.
• If you are unsure about the security of entering your gift card details, then ensure you are on a secure website (look for “https” in the URL and a padlock icon) before proceeding because protecting your financial information is paramount.

FAQ

Q: Can I use a digital gift card at any online store?

A: It depends on the type of gift card. Store-specific gift cards can only be used at that particular retailer. General-purpose prepaid cards (like Visa or Mastercard gift cards) can typically be used anywhere those card networks are accepted online.

Q: What if my purchase is more than the gift card amount?

A: Most online retailers allow you to use a gift card for part of the payment and then pay the remaining balance with another method, such as a credit card or debit card.

Q: How do I find the PIN for my digital gift card?

A: The PIN is usually included with the digital gift card details, often in the same email or message. For physical gift cards, it’s typically on the back, under a scratch-off strip.

Q: What happens if my digital gift card expires?

A: Once a gift card expires, any remaining balance is typically forfeited. It’s crucial to check the expiration date and use the card before it becomes invalid.

Q: Can I convert a digital gift card to cash?

A: Generally, no. Digital gift cards are intended for purchases. While some secondary marketplaces exist, they often involve selling the card at a discount and come with risks.

Q: Do I need to register my digital gift card?

A: Some general-purpose prepaid gift cards may require registration or activation before they can be used for online purchases. Always check the card issuer’s instructions.

Q: What if the website doesn’t have a gift card payment option?

A: Look for options like “Promo Code,” “Coupon,” or “Voucher.” If none are apparent, contact the merchant’s customer service for guidance.

Q: Can I use multiple digital gift cards for one purchase?

A: Many retailers allow you to apply multiple gift cards to a single order, but this varies by merchant. You might need to apply them one by one.

What this page does NOT cover (and where to go next)

• Physical gift card handling: This guide focuses on digital cards; physical card usage has some different steps.
• Gift card scams and fraud prevention: Understanding how to identify and avoid fraudulent gift card offers.
• Selling or trading unwanted gift cards: Information on platforms or methods for liquidating gift cards you don’t intend to use.
• Gift card fees and regulations: Detailed information on specific types of fees (e.g., inactivity fees) and state-specific laws governing gift cards.
• Using gift cards for bill payments: While some services might accept them, this is not a standard payment method for most utilities or loans.