The Short Answer: Earning Points on Gift Card Purchases
Many shoppers wonder if buying Amazon gift cards counts towards earning rewards points, whether through Amazon's own programs or external credit cards. The general rule is that direct purchases of Amazon gift cards from Amazon.com itself typically do not earn bonus points or rewards. This is because gift cards are often considered a cash-equivalent transaction, and many reward programs exclude them to prevent 'manufactured spending' or earning rewards on simply transferring money to a store's credit.
- Direct Amazon gift card purchases often don't earn bonus rewards.
- Third-party retailers may offer rewards on gift card purchases.
- Credit card rewards categories can impact point earnings.
- Focus on spending gift card balances for maximum benefit.
This often surprises people, as they assume any purchase made through a retailer should yield rewards. However, the mechanics of points and rewards are nuanced, especially when dealing with store-specific currency like gift cards. Understanding these mechanics can help you avoid common pitfalls and ensure you're not missing out on legitimate earning opportunities.
Understanding Reward Program Exclusions
Most loyalty programs, including Amazon's own, are designed to reward spending on products and services that directly generate revenue for the company beyond just the transaction of a gift card. When you buy a gift card, you're essentially prepaying for future purchases. While Amazon eventually benefits when that card is redeemed, the initial transaction is often viewed differently from buying a book or an electronic gadget. This is a crucial distinction that often leads to the disappointment of not seeing expected points appear.
The primary reason for these exclusions is to prevent what's known as 'manufactured spending.' This is a strategy where individuals try to earn rewards or meet spending thresholds by buying and liquidating financial instruments like gift cards, prepaid cards, or money orders, often through credit cards. Retailers and credit card companies implement rules to disincentivize this practice and maintain the integrity of their reward systems.
The core reason often cited for not earning points on direct Amazon gift card purchases is their classification as a cash-equivalent.
Even if you're using an Amazon-branded credit card to buy an Amazon gift card directly from Amazon, the purchase itself usually won't trigger bonus points specific to Amazon purchases. The card might still earn its base rewards rate, but don't expect category bonuses related to Amazon shopping.
How Credit Card Rewards Interact with Gift Card Purchases
When you use a credit card to buy an Amazon gift card, the rewards you earn depend heavily on the credit card's specific reward structure and where you make the purchase. This is where many people find exceptions and opportunities.
Purchasing from Third-Party Retailers
This is where things can get interesting. If you buy an Amazon gift card from a retailer other than Amazon itself – for example, a supermarket, a drug store, or a big-box retailer – your credit card might offer rewards based on *that retailer's category*, not on the fact that you bought an Amazon gift card.
For instance:
- If you use a credit card that offers 5% back on purchases at supermarkets, and you buy an Amazon gift card at a grocery store, you will likely earn that 5% back on the gift card purchase price. The supermarket retailer gets the sale, and your credit card issuer rewards you for shopping at that type of store.
- Similarly, a card offering 3% back on drugstore purchases could yield rewards if you buy an Amazon gift card at a pharmacy.
This strategy is a common way consumers can earn rewards on Amazon gift cards, provided they use a credit card that categorizes the purchase location favorably. It circumvents Amazon's direct policy by leveraging the rewards structure of the intermediary seller.
Specific Credit Card Categories to Consider
When looking to earn rewards on gift card purchases, especially those for Amazon, pay close attention to your credit card's bonus categories. Common ones that might apply include:
- Supermarkets/Grocery Stores: A very common place to find Amazon gift cards.
- Drugstores/Pharmacies: Another frequent location for various gift cards.
- Office Supply Stores: Some offer gift cards, though often at a discount or with a small fee.
- General Merchandise/Big Box Retailers: Stores like Target or Walmart often carry Amazon gift cards.
Always check your credit card's terms and conditions to confirm which merchant categories qualify for bonus rewards and if gift card purchases are eligible. Some cards explicitly exclude gift card purchases from bonus categories, even at partner merchants.
Mistakes to Avoid with Credit Card Gift Card Purchases
A common mistake is assuming all purchases at a qualifying retailer will earn bonus points. Some retailers, particularly large ones, might process gift card sales through a separate merchant category code that doesn't align with their usual bonus categories. For example, a supermarket might list its regular grocery sales under one code but its gift card sales under another, which might not earn 5% back.
Another pitfall is purchasing gift cards from online third-party resellers that might not be recognized by your credit card issuer as a bonus category, or worse, could be flagged as suspicious. Sticking to well-known, physical retail locations for your Amazon gift card purchases is generally safer for earning credit card rewards.
Amazon's Own Rewards: A Different Perspective
While you typically don't earn Amazon points for buying Amazon gift cards directly from Amazon, it's important to distinguish this from other Amazon reward mechanisms. Amazon has its own loyalty and rewards programs, most notably the Amazon Prime Rewards Visa Signature Card and the Amazon Secured Card, which offer varying benefits.
Amazon Prime Rewards Visa Card
This card offers specific rewards categories, often including bonus points for purchases made at Whole Foods Market and Amazon.com. However, even with this card, the purchase of an Amazon gift card directly from Amazon.com is generally treated as a cash-equivalent transaction and does not earn the typical 5% back or other bonus categories associated with shopping on Amazon for products.
The card is designed to reward spending on actual goods and services purchased on Amazon, not on the acquisition of store credit. If you use this card to buy an Amazon gift card at a grocery store that falls under a different bonus category (e.g., 2% back at supermarkets), you would earn at that supermarket rate, not a bonus Amazon rate.
Amazon Secured Card & Other Amazon Payment Methods
For secured cards or other payment methods linked to Amazon, the earning potential on gift card purchases will also follow general credit card and program rules. These are typically not structured to offer rewards on the purchase of the gift card itself.
The key takeaway is that Amazon's own programs are generally aimed at rewarding spending on tangible goods and services, not on the purchase of their own gift cards.
What If I'm Buying a Gift Card for Someone Else?
Even if you're purchasing an Amazon gift card as a present for a friend or family member, the rules remain the same regarding earning points on the purchase itself. The intent behind the purchase doesn't alter how reward programs classify the transaction. You'll still need to consider the purchase location and the payment method's reward structure to see if any points can be earned.
Do Amazon Gift Cards Expire or Have Fees?
Beyond the question of earning points, another common concern for gift card users is whether the funds can disappear or if hidden costs erode their value. This is a critical aspect of understanding gift card utility.
Do Amazon Gift Cards Expire?
Fortunately, Amazon gift cards do not expire, and the balances on them do not lose value over time. This is a significant consumer protection, as many states have laws preventing gift cards from expiring. Amazon adheres to these regulations, ensuring that any Amazon gift card you purchase or receive remains valid indefinitely.
This evergreen nature makes them a reliable form of payment or gifting. You can purchase an Amazon gift card today, and the recipient can redeem it years down the line without worrying about the balance vanishing.
Do Amazon Gift Cards Have Fees?
When you purchase an Amazon gift card directly from Amazon.com, there are typically no fees associated with buying the card itself. The amount you pay is the exact amount of value loaded onto the gift card. For example, if you buy a $100 Amazon gift card, you pay $100, and $100 is added to your Amazon account or the recipient's.
However, it's worth noting that some third-party sellers or physical retail locations *might* sometimes charge a small service fee or a nominal activation fee, especially if they are offering the gift cards at a discount or as part of a promotion. These situations are less common for standard Amazon gift cards purchased from reputable sources.
Always check the terms and conditions or the price displayed at the point of sale to ensure there are no unexpected fees.
Potential for Fees on Other Gift Cards
While Amazon gift cards are generally fee-free at purchase, this isn't universally true for all gift cards. Some retailer-specific gift cards, especially those that might have dormancy clauses or require activation fees, can incur charges. For Amazon gift cards, the primary way a 'fee' might be perceived is if you are buying them through a reseller that adds a markup, which is not a direct fee from Amazon but an increased purchase price.
What About Amazon Rewards Points Expiring?
While Amazon gift card balances don't expire, it's important to know that Amazon's own rewards points (like those earned through the Amazon Prime Rewards Visa Card) *can* have an expiration policy. Typically, if your Amazon Rewards points account becomes inactive for a certain period, or if the associated credit card account is closed, the points may expire. Always refer to the specific terms and conditions of your Amazon rewards program or credit card for details on point expiration and inactivity policies.
Mistakes to Avoid When Buying Gift Cards for Rewards
Navigating the world of gift cards and rewards can be tricky, and several common mistakes can lead to missed opportunities or unexpected outcomes. Being aware of these pitfalls can save you frustration and ensure you're spending smartly.
Mistake 1: Assuming All Gift Card Purchases Earn Rewards
As discussed, buying Amazon gift cards directly from Amazon.com typically yields no bonus rewards. Many people assume any purchase made on Amazon, regardless of item type, should earn points. This is a fundamental misunderstanding of how Amazon's own programs and even credit card category bonuses operate. The nature of the transaction matters.
Mistake 2: Not Checking Credit Card Category Restrictions
Using a credit card that offers bonus points for 'grocery stores' or 'drugstores' seems like a surefire way to earn rewards on Amazon gift cards. However, many cards have exclusions. Some explicitly state that gift card purchases, even at qualifying retailers, do not earn bonus points. Others might have merchant category codes (MCCs) that classify gift card sales differently from regular merchandise sales.
Mistake 3: Relying Solely on Generic Retailer Bonuses
You might see a retailer advertising a 'buy $100 in gift cards, get a $10 bonus voucher' deal. While this can be a good deal for the recipient, it's often not directly tied to earning credit card points or Amazon rewards. These are promotional offers from the retailer, and you need to assess if the bonus value is worth the purchase, independent of other rewards you might seek.
The most critical step is to always verify the specific terms and conditions of your credit card issuer and any promotional offers.
Mistake 4: Overlooking Purchase Location for Third-Party Cards
If you're buying an Amazon gift card from a physical store, ensure that the store's MCC aligns with your credit card's bonus categories. A credit card might offer 5% on groceries, but if you buy an Amazon gift card at a convenience store that sells groceries but is coded as a convenience store, you'll likely only get the base rate.
Mistake 5: Not Understanding 'Cash Equivalents'
Many reward programs treat gift cards, prepaid debit cards, and money orders as cash equivalents. Purchases of these items are often excluded from earning bonus rewards because they are seen as a way to 'cash out' credit card spending without buying actual goods or services. This exclusion is a major reason why direct Amazon gift card purchases from Amazon rarely earn points.
Mistake 6: Ignoring Potential Fees or Markups
While Amazon gift cards bought directly are usually fee-free, third-party sellers or resellers might add markups or hidden fees. If you're focused on maximizing rewards, paying an inflated price for a gift card negates any small rewards you might earn on the purchase.
Maximizing Value When You Buy Amazon Gift Cards
Since directly earning bonus points on Amazon gift card purchases from Amazon.com is unlikely, savvy shoppers focus on extracting maximum value in other ways. This involves strategic purchasing, leveraging existing funds, and understanding the benefits beyond direct rewards.
Leverage Third-Party Retailer Promotions
As mentioned, the most common way to earn rewards is by purchasing Amazon gift cards from retailers that offer bonus categories on your credit card. Look for deals where you can get discounts on Amazon gift cards at supermarkets, drugstores, or big-box retailers. Sometimes, these retailers offer bonus gift cards with purchase (e.g., buy a $100 Amazon gift card, get a $10 store gift card). While not points, it's an immediate saving or added value.
Use Gift Card Balances for Specific Purchases
Once you have an Amazon gift card balance, treat it as pure cash for your Amazon purchases. Prioritize using gift card funds before dipping into your credit card or bank account for items you were already planning to buy. This effectively frees up your other funds for other purposes or for earning rewards on different types of spending.
Combine with Other Amazon Offers
Keep an eye out for Amazon promotions where you can get bonus credits or discounts. For example, Amazon sometimes offers a small credit when you add a certain amount to your gift card balance. While this isn't earning points, it's a direct increase in purchasing power.
The goal is to view gift cards as a way to consolidate spending or take advantage of specific purchase-point bonuses, rather than expecting the purchase of the gift card itself to be a high-reward activity.
Consider Amazon's Trade-In Program
While not directly related to buying gift cards, if you have old electronics, books, or other items, Amazon's Trade-In program can convert them into Amazon gift card balances. This is a way to 'earn' Amazon gift card funds without spending new money, and it's a great way to declutter and get value for items you no longer need.
Strategize with Amazon Prime Benefits
If you're an Amazon Prime member, remember to utilize all associated benefits. While this doesn't directly affect earning points on gift card *purchases*, it enhances the value of the gift card balance once applied. Free shipping, Prime Video, and other perks mean your gift card balance goes further, especially when combined with deals like Prime Day or Lightning Deals.
Frequently Asked Questions About Amazon Gift Card Points
Here are answers to some of the most common questions shoppers have when trying to earn rewards on Amazon gift card purchases.