Can You Purchase One Gift Card Using Another Gift Card?

Quick answer

• Generally, you cannot directly purchase a new gift card using an existing gift card.
• Most retailers and gift card issuers prohibit this transaction type.
• Some third-party websites might offer to buy your unwanted gift card for cash, but this usually involves a discount.
• You can sometimes use an existing gift card to purchase items, and then use a credit card or cash for the remainder, effectively getting “value” from the gift card.
• Reloadable gift cards are an exception, as they allow you to add funds, but this is usually done with cash or a credit/debit card, not another gift card.
• Always check the terms and conditions of your specific gift card for any unusual provisions.

Who this is for

• Individuals who have received a gift card for a store they don’t frequent or for an item they don’t need.
• Shoppers looking for ways to maximize the value of their gift cards or convert them to a different form of currency.
• Anyone curious about the specific rules and limitations surrounding gift card transactions.

What to check first (before you act)

Your Goal and Timeline

What do you hope to achieve by using one gift card to buy another? Are you trying to consolidate funds, get cash, or simply avoid letting the card expire? Your timeline for achieving this goal will influence the best approach. For example, if you need cash immediately, selling the card at a discount might be necessary. If you have time, you might look for better exchange rates or find a way to use the card for a purchase you were already planning.

Current Cash Flow

Consider your current financial situation. Do you have immediate cash needs? If so, trying to liquidate an unwanted gift card might be a priority. If you’re financially stable, you might have more flexibility to explore options that aren’t the quickest but might offer better value. Understanding your cash flow helps determine if a transaction that costs you a percentage of the gift card’s value is a worthwhile trade-off.

Emergency Fund or Safety Buffer

Do you have a healthy emergency fund? If your finances are tight and unexpected expenses could arise, it might be more prudent to use the existing gift card for a purchase you genuinely need or want, rather than trying to convert it into cash or another gift card, which often involves a loss of value. A strong safety net provides peace of mind and reduces the pressure to make suboptimal financial decisions.

Debt and Interest Rates

Are you carrying high-interest debt, such as credit card balances? If so, using the value of the gift card to pay down that debt would likely provide a better return than any method of converting it to another gift card or cash, especially considering the interest you’re saving. Always prioritize paying off expensive debt before exploring other ways to manage gift card balances. Check the official source or your provider for current interest rate information.

Credit Impact

While directly buying a gift card with another gift card typically won’t impact your credit, some methods of converting gift cards to cash or other forms might involve third-party services. Be cautious of any service that asks for extensive personal information beyond what’s necessary for the transaction, as this could be a sign of a scam. Using a gift card to pay for items on a credit card does not impact your credit score directly, but it does reduce your overall spending that month.

Step-by-step (simple workflow)

Step 1: Identify the Gift Card Type

What to do: Examine the gift card you wish to use. Is it a retailer-specific card (e.g., “The Gap” card) or a general-purpose prepaid card (e.g., Visa, Mastercard)? Note any logos or terms and conditions printed on the card or its packaging.
What “good” looks like: You clearly understand the brand or network the gift card belongs to.
A common mistake and how to avoid it: Assuming all gift cards work the same way. Avoid this by reading the card’s details carefully.

Step 2: Check the Terms and Conditions

What to do: Look for the gift card issuer’s website or contact information. Review the terms and conditions for any mention of purchasing other gift cards or restrictions on how the balance can be used.
What “good” looks like: You’ve found and read the official terms and conditions.
A common mistake and how to avoid it: Relying on word-of-mouth or assumptions. Always refer to the official documentation.

Step 3: Visit the Retailer’s Website (for Retailer-Specific Cards)

What to do: Go to the website of the retailer that issued the gift card you want to use. Navigate to their gift card section and look for options to purchase new gift cards.
What “good” looks like: You are on the official website and have found the gift card purchasing page.
A common mistake and how to avoid it: Browsing a search engine result without verifying the website’s legitimacy. Always ensure you are on the official domain.

Step 4: Attempt the Transaction

What to do: Select a new gift card you wish to purchase and proceed to checkout. At the payment stage, try entering the details of your existing gift card as the payment method.
What “good” looks like: The system accepts your gift card as a valid payment method.
A common mistake and how to avoid it: Expecting it to work without trying. If it fails, don’t be surprised; it’s the common outcome.

Step 5: Handle Declined Transactions

What to do: If the transaction is declined, this is the expected outcome for most retailers. Do not repeatedly attempt the same failed transaction.
What “good” looks like: You accept that direct purchase isn’t possible and move to alternative strategies.
A common mistake and how to avoid it: Becoming frustrated and trying to force the transaction. It’s a system limitation, not a glitch.

Step 6: Explore “Sell My Gift Card” Websites

What to do: Search for reputable third-party websites that buy unwanted gift cards. These platforms allow you to sell your gift card for a percentage of its face value, receiving cash or a check.
What “good” looks like: You’ve found a well-reviewed site and understand the payout percentage.
A common mistake and how to avoid it: Using unverified or scam sites. Always research reviews and payout rates carefully.

Step 7: Compare Payout Rates

What to do: Visit several gift card resale sites and compare the percentage of the gift card’s value they offer. Rates can vary based on the brand and demand.
What “good” looks like: You have a clear understanding of the best offer available.
A common mistake and how to avoid it: Accepting the first offer without comparison, potentially losing money.

Step 8: Initiate the Sale (if pursued)

What to do: Select a site, enter your gift card details, and follow their process for selling. This usually involves providing the card number and PIN.
What “good” looks like: The sale is initiated, and you receive confirmation.
A common mistake and how to avoid it: Providing sensitive personal information beyond what’s necessary for the transaction.

Step 9: Use the Gift Card for Purchases

What to do: If selling isn’t ideal, use the existing gift card to buy items you need or want. You can then use a different payment method (cash, credit card) for any remaining balance.
What “good” looks like: You’ve successfully used the gift card’s value for something tangible.
A common mistake and how to avoid it: Letting the card expire unused because you were focused solely on converting it.

Step 10: Consider Reloadable Cards

What to do: If you have a reloadable prepaid card, check its terms. You might be able to add funds using other methods, though typically not another gift card.
What “good” looks like: You understand how to add funds to your reloadable card if desired.
A common mistake and how to avoid it: Assuming you can load any gift card onto a reloadable card. Specific methods usually apply.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Assuming you can buy gift cards with gift cards directly.	Transaction will be declined, wasting your time and effort.	Check retailer policies; understand this is rarely allowed.
Not reading gift card terms and conditions.	Missing expiration dates, inactivity fees, or usage restrictions.	Always review the fine print before attempting to use or convert a gift card.
Using unverified third-party websites.	Losing the value of your gift card to a scam or receiving significantly less.	Stick to well-known, reputable gift card resale platforms with clear reviews.
Forgetting about expiration dates.	The gift card balance becomes worthless after the expiration date.	Track your gift card balances and expiration dates; use them before they expire.
Not checking for inactivity fees.	The card balance slowly depletes over time if not used.	Be aware of potential inactivity fees; use the card to avoid them.
Selling at too low a discount.	You lose more money than necessary in the conversion process.	Compare payout rates from multiple reputable resale sites before selling.
Trying to use a closed-loop card at the wrong merchant.	The transaction will be declined because the card is brand-specific.	Ensure the gift card is for the correct retailer or a general-purpose network (Visa, Mastercard).
Not verifying the balance.	You might be surprised by a lower-than-expected balance, impacting your plans.	Always check your gift card balance before making any plans to use or sell it.
Overlooking shipping or processing fees for resale.	The net amount you receive will be less than anticipated.	Factor all fees into your calculation when comparing resale offers.
Not considering the “opportunity cost.”	You might miss out on better ways to use the card’s value, like paying debt.	Evaluate if using the card for a purchase or paying down debt offers better financial returns.

Decision rules (simple if/then)

• If you have a retailer-specific gift card and need to buy something from that retailer, then use the gift card for that purchase because it’s the most straightforward way to get value.
• If you have a retailer-specific gift card and don’t shop at that store, then explore selling it on a reputable resale site because you’ll likely get a percentage of its value in cash.
• If you have a general-purpose prepaid card (like Visa or Mastercard), then you have more flexibility to use it at various merchants, but still cannot typically buy another gift card with it.
• If you need cash immediately, then selling your gift card on a resale site is an option, but be prepared to accept less than its face value because of the discount.
• If you have a very small balance on a gift card, then it might be more trouble than it’s worth to sell it; consider using it for a small purchase or adding it to a larger purchase.
• If the gift card is nearing its expiration date, then prioritize using it for a purchase rather than trying to convert it, as conversion methods can take time.
• If you are considering selling a gift card, then compare rates from at least three reputable resale platforms because rates can vary significantly.
• If you have a reloadable gift card, then check its specific terms to see if you can add funds, but understand that adding funds is usually done with cash or a debit/credit card, not another gift card.
• If you have high-interest debt, then using the value of an unwanted gift card to pay down that debt is often the best financial decision because the interest savings outweigh the gift card’s face value.
• If you find a website claiming you can directly buy gift cards with other gift cards without a discount, then be highly suspicious because this is a rare exception and often a scam.
• If you are unsure about a gift card’s terms, then contact the issuer directly or visit their official website because assumptions can lead to lost value.

FAQ

Can I use a Visa gift card to buy another Visa gift card?

Generally, no. Most systems are designed to prevent using prepaid cards to purchase other prepaid cards of the same network to avoid money laundering or fraud. Always check the specific terms of your Visa gift card.

What if my gift card has a small balance left?

For small balances, it’s often easiest to use the gift card for a purchase at its designated retailer and pay the remaining amount with another payment method. Selling very small balances might not be worth the effort or fees.

Are there any websites that allow direct gift card exchanges?

While some platforms facilitate the sale of gift cards for cash, direct exchanges for other gift cards are uncommon and often involve significant fees or unfavorable rates. Be very cautious of such offers.

Can I use a gift card to pay for online purchases?

Yes, you can typically use gift cards online just as you would in a physical store. For general-purpose prepaid cards (like Visa), you may need to register them online first and ensure the purchase amount does not exceed the card’s balance.

What happens if I try to spend more than the gift card balance?

If you attempt to make a purchase that exceeds the gift card’s balance, the transaction will likely be declined. For many retailers, you can inform the cashier you have a gift card and pay the remaining balance with another payment method.

Are there fees associated with selling a gift card on resale sites?

Yes, most gift card resale sites charge a fee or offer a percentage of the gift card’s value as payment, meaning you will receive less than the face value. Always check the payout rate and any associated fees.

Can I use an old gift card that expired?

No, once a gift card has expired, its value is typically forfeited. Some states have laws that protect consumers from expired gift cards, but this is not universal. Check your local regulations and the card’s terms.

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

• Specific legal protections regarding gift card expiration dates and fees in every US state. (Next: Research your state’s consumer protection laws regarding gift cards.)
• The precise mechanics of money laundering and how gift cards are sometimes used in illicit activities. (Next: Explore resources on financial crime prevention.)
• How to obtain a refund for a gift card purchase if you change your mind. (Next: Consult the return policy of the retailer where the gift card was purchased.)
• The process of setting up and managing a business that buys and sells gift cards. (Next: Research business licensing and regulations for financial services.)
• Advanced strategies for maximizing gift card value through loyalty programs or cashback offers. (Next: Look into personal finance blogs focused on rewards and savings.)