Key takeaways
- Choose the right card based on where you buy gift cards: Chase Ink Business Cash for office supplies (5%), Amex Gold for supermarkets and restaurants (4 points), Citi Double Cash for any merchant (2%).
- American Express Gold cardholders receive statement credits including $50 semiannually at Resy restaurants and $10 monthly in Uber Cash, offsetting the annual fee.
- Costco Anywhere Visa is the only major card earning rewards on Costco purchases, at 2% cash back for those with an active membership.
Buying gift cards presents an opportunity to earn significant rewards toward travel goals, especially if you choose the right card for the merchant you’re shopping at. Whether you’re purchasing an Airbnb gift card for a future trip or stocking up on gift cards for the year ahead, your spending can be converted into points, miles, or cash back that accelerates your progress toward redemptions.
The key is matching your card to where you actually buy gift cards. A card that excels at office supply stores won’t help if you purchase gift cards primarily at Costco or supermarkets. Here’s how to evaluate the best options across different merchant categories.
The Business Owner’s Choice: Chase Ink Business Cash
How It Works for Gift Cards
The Chase Ink Business Cash card earns 5% cash back on purchases at office supply retailers, making it exceptionally efficient for bulk gift card buying at stores like Staples and OfficeMax. The card applies this rate on up to $25,000 in annual spending within the category, after which the rate drops to 1%.
Since the card carries no annual fee, it’s accessible to sole proprietors and small business owners without annual cost. If you hold another eligible Chase Ultimate Rewards card, such as the Ink Business Preferred or Chase Sapphire Reserve for Business, your cash back can be transferred into points and then to any of Chase’s 14 transfer partners, opening pathways to airline and hotel redemptions.
Welcome Bonus and Value Proposition
New cardholders earn $750 in cash back after meeting a $6,000 spending requirement within three months of account opening. Combined with the 5% category rate, this card rewards volume buyers who consolidate their office supply gift card purchases.
Premium Benefits and Supermarket Bonus: American Express Gold
Earning Structure for Gift Cards
The Amex Gold provides 4 points per dollar spent at U.S. supermarkets and restaurants globally, with the supermarket benefit capped at $25,000 annually and the restaurant rate limited to $50,000 per calendar year. Beyond those limits, the card earns 1 point per dollar. This structure makes Amex Gold particularly strong for gift card purchases at grocery chains and dining establishments.
Statement Credits That Offset Annual Fees
The card includes several credits that help justify its annual fee. Cardholders receive up to $50 in semiannual credits for reservations made through Resy restaurants in the U.S. Additionally, the card provides up to $10 monthly in Uber Cash when you link your Amex Gold to your Uber account and pay with any American Express card (enrollment required for select benefits). Eligible dining purchases also generate up to $10 in monthly credits.
Welcome Bonus Flexibility
New cardmembers can earn up to 100,000 bonus points after spending $8,000 within six months, though eligible offers vary and you may not qualify for the maximum bonus. For someone purchasing significant numbers of restaurant or supermarket gift cards, these bonus points accelerate progress toward premium travel redemptions.
Cash Back Simplicity: Bank of America Customized Cash Rewards
The Bank of America Customized Cash Rewards card lets you choose a single merchant category to focus on for 6% cash back during your first cardholder year. The rate applies to the first $2,500 in quarterly spending, after which it drops to 1%. This structure is particularly valuable if you’ve identified one primary merchant where you’ll purchase gift cards—Costco, Staples, or any other retailer accepted as a category option.
After your first year concludes, the card maintains 3% cash back on your chosen category, providing durable long-term value. New cardholders also earn a $200 online cash rewards bonus after spending $1,000 in the first 90 days of account opening.
Universal Rewards: Citi Double Cash
Earning on Any Merchant
For gift card buyers who shop across multiple retailers with no concentration in a single merchant, the Citi Double Cash offers straightforward 2% cash back on all purchases. The unique mechanism awards 1% when you make the purchase and 1% when you pay off the balance, combining into a 2% total return regardless of where you shop.
Transfer Potential and Limits
Your cash back is credited as Citi ThankYou points, which transfer to the issuer’s 21 airline and hotel partners. However, transfer ratios are less favorable than cards in Citi’s premium tier, such as the Citi Strata Premier, so redemptions through partners require careful calculation of point value.
Welcome Bonus
New cardmembers earn $200 in cash back after spending $1,500 on purchases within six months of account opening.
Warehouse Shopping: Costco Anywhere Visa Card
Costco-Exclusive Rewards
Purchasing gift cards at Costco is common, but most credit cards don’t extend bonus rewards to warehouse club purchases. The Costco Anywhere Visa is the only major card that does, earning at least 2% cash back on all Costco and Costco.com purchases.
While 2% is lower than some other cards in this roundup, it may be the only option that qualifies for any bonus rewards at Costco. The card requires an active Costco membership as a prerequisite for approval.
Redemption Structure
Costco rewards redemption differs from most cards. Your cash back is provided as an annual credit card rewards certificate issued when your February billing statement closes, rather than a continuously accessible balance or point balance.
Matching Your Card to Your Shopping Pattern
Your ideal card depends on concentration. If you buy gift cards primarily at a single retailer, the Bank of America Customized Cash Rewards card maximizes that focused spending with its 6% first-year rate. If you split purchases across multiple merchants, the Citi Double Cash avoids the complexity of bonus categories entirely.
For business owners purchasing through office supply channels, the Chase Ink Business Cash combines high earning, no annual fee, and transfer flexibility. American Express Gold works best when you’re stocking up at supermarkets and restaurants. Costco members have no viable alternative if they want rewards on warehouse purchases.
Avoiding Common Mistakes
Exclusively using a credit card for gift card purchases can flag your account as potentially fraudulent activity and may trigger penalties, account closure, or blacklisting from future cards issued by that issuer. Use your chosen card for gift cards as part of broader spending that includes regular purchases.
Gift card purchases earn bonus rewards only when they fall within your card’s designated bonus categories. A restaurant purchase at a restaurant’s storefront earns bonuses, but a gift card purchased through a general retailer outside that category will earn only the base rate or cash back.
Maximizing Your Gift Card Rewards
Consider your redemption strategy before choosing a card. Points and miles generally yield the highest value when redeemed for travel with airline and hotel partners. However, if travel redemptions don’t align with your timeline or goals, redeeming for gift cards instead can still provide worthwhile returns on your spending.
Frequently Asked Questions
Can I earn bonus rewards when buying gift cards?
Yes, gift card purchases earn bonus rewards provided the merchant falls within your card's bonus categories. For example, the American Express Gold earns 4 points per dollar at supermarkets and restaurants, while the Chase Ink Business Cash earns 5% at office supply stores.
What happens if I exclusively use my credit card to buy gift cards?
Exclusively using a credit card for gift card purchases can trigger negative actions from your card issuer, including account penalties, account closure, or being blacklisted from opening future credit cards with that issuer. Use your card for mixed purchases instead.
Which card should I choose if I buy gift cards at many different retailers?
The Citi Double Cash is your best option if you purchase gift cards across multiple merchants. It earns a flat 2% cash back on all purchases regardless of where you shop, eliminating the need to track bonus categories.
