Can You Buy A Gift Card With Another Things To Know

Purchasing gift cards is a common way to give thoughtful presents, manage budgets, or earn rewards. But what happens when you want to use one gift card to buy another? It's a practical question many shoppers face—especially during holiday seasons or when consolidating balances. The answer isn't always straightforward, as policies vary by retailer, card type, and even location. Understanding these nuances can help you make smarter financial decisions and avoid checkout surprises.

How Gift Cards Work: A Quick Overview

Gift cards are prepaid stored-value cards issued by retailers, banks, or third parties. They come in two main types: open-loop and closed-loop. Open-loop cards (like Visa or Mastercard gift cards) can be used anywhere that accepts those networks. Closed-loop cards (such as a $50 Starbucks card) only work at specific brands or chains.

The flexibility of open-loop cards makes them more versatile, but also more regulated. Retailers often impose restrictions on how they’re sold and used—especially when it comes to buying additional gift cards. These rules exist to prevent money laundering, fraud, and misuse of promotional offers.

Tip: Always check the back of your gift card or the issuer’s website for usage terms before attempting to purchase another card.

Can You Buy a Gift Card with Another Gift Card?

The short answer: sometimes—but not universally. Whether you can use a gift card to buy another depends on three key factors:

1. Retailer Policy: Many large stores like Walmart, Target, and Amazon allow the use of gift cards for most purchases—including other gift cards. Others, like Best Buy or Kroger, explicitly prohibit it.
2. Card Type: Store-specific (closed-loop) cards are less likely to be accepted for purchasing new gift cards than general-purpose (open-loop) ones.
3. Location and Payment System: In-store vs. online transactions may have different rules. Some systems automatically block gift card payments for gift card purchases.

For example, Walmart allows customers to use Walmart gift cards to buy other Walmart gift cards—both in-store and online. However, if you try to use a Visa gift card to buy an Apple gift card at Best Buy, the transaction will likely be declined due to internal policy.

Real Example: Holiday Shopping Dilemma

Sarah received a $100 Target gift card from her employer. Wanting to shop for family gifts, she planned to use part of the balance to buy branded gift cards (Nike, Ulta, etc.) for her siblings. At checkout, she discovered Target does not allow gift cards to be used for third-party gift card purchases. She had to either spend the full amount on merchandise or request a refund—a process requiring customer service approval and taking up to 10 business days.

This scenario highlights why understanding store-specific policies ahead of time can save time, frustration, and limit wasted opportunities.

Do’s and Don’ts When Using Gift Cards to Buy More Cards

Do	Don’t
Check the retailer’s official policy online	Assume all gift cards work like cash
Use open-loop cards (Visa/Mastercard) for broader acceptance	Try to combine multiple small-balance cards at self-checkout without testing first
Contact customer support if blocked unfairly	Attempt to exploit loopholes or resell gift cards commercially without authorization
Track remaining balances across cards	Leave unused balances below $1 thinking they’re worthless

“Retailers restrict gift card-to-gift-card purchases primarily for compliance and risk management. While inconvenient, these policies protect consumers from scams and unauthorized transactions.” — Linda Park, Senior Analyst at Consumer Finance Watch

Smart Strategies for Maximizing Gift Card Value

If your goal is to consolidate value or give flexible gifts, consider these alternative approaches:

• Convert to Open-Loop Cards: Use store credit to buy a Visa or American Express gift card (if allowed), which can then be spent almost anywhere.
• Resell Unused Cards: Platforms like Raise or CardCash let you sell unwanted gift cards for up to 92% of their value—often better than letting them expire.
• Donate for Tax Deductions: Charities like Goodwill or local food banks often accept gift cards. Keep records for potential tax benefits.
• Combine with Other Payment Methods: Split transactions using a mix of gift cards and debit/credit to complete a gift card purchase.

Tip: Use apps like Gyft or Stackly to organize digital gift cards and get alerts about expiring balances.

Step-by-Step Guide: Can I Use This Gift Card to Buy Another?

1. Identify the card type: Is it store-specific or network-branded (Visa, etc.)?
2. Review the issuer’s terms: Visit the website printed on the back of the card.
3. Call customer service: Ask directly: “Can I use this card to purchase other gift cards?”
4. Test with a small transaction: Try buying a low-value card in-store before attempting larger amounts.
5. Have a backup payment method ready: Avoid delays at checkout if the system declines the transaction.

Frequently Asked Questions

Can I buy an Amazon gift card using a Walmart gift card?

No, not directly. While both companies sell each other’s gift cards in-store, you cannot use a Walmart gift card as payment at Amazon, nor can you typically use a Walmart gift card to buy an Amazon gift card at Walmart due to internal restrictions on cross-brand gift card purchases.

Why do some stores ban gift card purchases with gift cards?

Restrictions exist to prevent fraudulent activities such as money laundering, recycling stolen funds, or exploiting bonus card promotions. Additionally, gift cards are considered final-sale items in many jurisdictions, making reversals complicated.

What happens if my gift card has a small leftover balance?

You can usually still use small balances toward future purchases. For example, a $3.27 balance on a Target gift card can be applied to a coffee mug that costs $5.99, with the difference paid via another method. Never discard low-balance cards—they still hold value.

Final Checklist Before Attempting a Gift Card Purchase

• ✅ Confirm the retailer allows gift card payments for gift card purchases
• ✅ Verify whether your card type is accepted (store-branded vs. Visa/Mastercard)
• ✅ Check for any transaction limits (e.g., max $250 per day)
• ✅ Ensure the card has sufficient funds including taxes (if applicable)
• ✅ Have a secondary payment option ready in case of denial
• ✅ Record the new card details immediately after purchase

Conclusion: Make Informed Choices

Navigating the world of gift cards requires more than just knowing the balance—it demands awareness of policies, limitations, and creative solutions. While buying a gift card with another is possible in select cases, it’s far from guaranteed. By researching ahead, leveraging open-loop options, and using trusted resale platforms, you can maximize every dollar loaded onto a card.

💬 Have experience using gift cards to buy others? Share your story or tip in the comments—your insight could help someone avoid a frustrating checkout moment!