How to Buy a Gift Card with a Gift Card?

Gift cards, those handy substitutes for cash, have changed how we shop and share presents. They give recipients the freedom to pick what they want from various options. But can you buy a gift card with a gift card? That’s a question that often arises, as people seek to leverage the convenience of gift cards for their gifting needs.

Whether shopping at a favorite store, enjoying a meal at a renowned restaurant, or exploring online platforms, gift cards have become the ideal choice for thoughtful gifting.

This article will break down the world of gift cards, covering various ins and outs such as: 

• Types of gift cards, detailing their features and acceptance. 
• Benefits of gift cards, including safety, easy access, convenience, and tracking. 
• Policy and considerations of buying a gift card with another. 

Sound intriguing? Let’s delve deeper into it without further ado. 

What is a Gift Card? 

A gift card is a preloaded card that substitutes for cash during purchases. It holds a predetermined monetary value, allowing the recipient to select from a range of products or services within the specified amount.  

These cards are available from various retailers, restaurants, and online platforms, making them a versatile choice for gift-giving. 

The popularity of gift cards has grown in recent years owing to their convenience and adaptability. They provide an easy way to offer a gift without knowing the recipient’s specific preferences or sizes.  

Therefore, rather than worrying about selecting the ideal present, you can opt for a gift card, enabling the recipient to make their own choices. 

Types of Gift Cards 

Gift cards come in two primary categories: store-based and open-loop.  

Store-based gift cards are exclusive to the issuing retailer, whereas open-loop cards can be utilized at any establishment that accepts the card network indicated on the card. 

1. Open Loop Gift Cards 

Open-loop cards are among the most widespread gift cards, accepted at any merchant within the card network.  

Issued by banks or debit card companies like Visa, Mastercard, and American Express, these cards typically have no fees and are convenient to use anywhere. 

2. Closed Loop Gift Cards 

Closed-loop gift cards are typically branded and limited to use at the issuing location. 

Moreover, these cards usually come without associated fees and are exclusive to specific retailers and businesses. 

3. Reloadable Gift Cards 

Reloadable gift cards, typically issued by banks or credit card companies, are designed for multiple uses or more significant purchases. They can be replenished with funds after depletion, offering flexibility for repeated utilization. 

4. Non-reloadable Gift Cards 

Unlike their reloadable counterparts, non-reloadable gift cards cannot be refilled after depletion. Retailers or brands often issue them, and they are generally more cost-effective. 

5. Banks/Credit Card Companies 

Gift cards issued by banks or credit card companies are usually open-loop, allowing usage wherever the card network is accepted. Typically, these cards are fee-free for added convenience. 

6. Retailer Or Brand Gift Cards 

Gift cards from retailers, brands, or individual businesses are typically closed-loop, limiting use to a specific issuer. These cards may carry associated fees varying by the issuing entity. 

Card Type	Issuer	Acceptance	Reloadable	Fees
Open Loop Gift Cards	Banks, Debit Card Companies	Anywhere	Yes	None
Closed Loop Gift Cards	Retailers, Brands	Specific issuer	No	None
Reloadable Gift Cards	Banks, Credit Card Companies	Anywhere	Yes	May have reloading fees
Non-reloadable Gift Cards	Retailers, Brands	Specific issuer	No	None
Banks/Credit Card Companies	Banks, Credit Card Companies	Anywhere	Depends	None
Retailer Or Brand Gift Cards	Retailers, Brands	Specific issuer	No	May have fees (varies)

What are the Benefits of Gift Cards? 

The appreciation for gift cards can be enhanced by aligning the purchase with the recipient’s likes and interests.  

Beyond the joy of shopping, gift cards offer various benefits: 

1. Freedom to Choose 

In a world filled with online options, gift cards allow recipients to select whatever they want from a retail store or online platform. 

2. Safety 

Gift cards are generally a secure option, functioning like debit cards. However, it’s essential to stay alert to gift card scam warnings, as scams can target unsuspecting buyers. Fortunately, if your card is lost or stolen, it can be frozen, ensuring your funds remain secure and protected from financial loss.

3. Easy Access 

Prepaid gift cards require a simple swipe for electronic payments. This ensures quick and convenient transactions. 

4. Convenience 

Mobile gift cards can be delivered directly to the recipient’s mobile phone via email or SMS. For example, sending Starbucks gift card via text.  

This makes them easily portable on the telephone and associates the card with a specific mobile number, enhancing security. 

5. Tracking 

Gift cards allow monitoring and controlling spending by specifying the amount and locations where the card can be used.  

This feature is particularly beneficial for young shoppers since their shopping requires tracking, and this control is impossible with cash. 

Key Considerations for Buying a Gift Card with Another Gift Card

Yes, you can buy a gift card with another gift card. However, the possibility of purchasing a gift card with another one hinges on the specific policies the merchant determines and the nature of the gift cards.

 A few essential considerations for this transaction are explained below. 

Merchant Policies 

Policies on using gift cards to purchase other gift cards vary among merchants. 

However, some stores like Target, Walmart, and Amazon may accept Visa or Mastercard branded gift cards for this purpose. 

Value Restrictions 

Even if the merchant allows the purchase of a gift card with another gift card, there could be restrictions on the portion of the original gift card value that applies to the purchase of the second one.  

For instance, if you hold a $100 gift card from Store A and intend to buy a $50 gift card for men or women from Store B, the usage limit might be $20. 

Generally, using a gift card immediately ensures you get the card’s total value.  

If you need to return a gift card, keeping all relevant documentation, such as a receipt or proof of purchase, is crucial in case any issues arise during the return process.  

Always be aware of and comply with the specific policies outlined by the store or company associated with the gift card. 

Tips to Avoid Issues 

• Thoroughly check the terms and conditions of both gift cards before attempting this transaction. 
• Contact the merchant beforehand to clarify their specific policies on using gift cards for such transactions. 
• Calculate the usage limit, taxes, and additional charges before this transaction.  

Consider these tips to ensure a smooth and informed process. 

Why Would People Want to Buy a Gift Card with a Gift Card? 

Gift cards are widely regifted. If the balance on your current gift card is unsuitable for the intended gift, you can use it to obtain a new one.

This way, you leave the store with a newly loaded gift card of the correct amount and a gift. Let’s explore some popular stores where you might consider regifting an old gift card. 

While it may be advisable to keep certain specifics to yourself, as long as you feel content about the gift you are giving, there is no need for embarrassment.  

Let’s explore five suitable options for presenting a gift card as a gift. 

Food and Restaurants 

Occasionally, you may receive a gift card to a restaurant that does not align with your preferences, which is acceptable.  

This could be due to various reasons, such as an inconvenient location or personal taste preferences. Pair that with an upcoming birthday or holiday celebration, and you might have found the perfect opportunity to pass along your gift card. 

Clothes Shopping 

Clothing is often expensive, and finding a suitable store might be arduous for many people.  

If you have received a gift card from a store that does not match your style, it might be time to pass it on. While the original spirit of the gift card may diminish when regifted, one of its primary purposes—to save you money—is still fulfilled.  

Entertainment 

Gifting an entertainment gift card can be exciting but somewhat risky, as it commits you to a specific activity.  

If you recently received an entertainment gift card that does not align with your interests, consider gifting it to someone who would appreciate it. 

Drinks 

Beverages, whether alcoholic or non-alcoholic, can be a significant expense and are not everyone’s preference.  

For instance, coffee gift cards are a classic choice for people who are gifting gift cards. Therefore, if you’re not a coffee enthusiast, there’s a good chance that you might want to regift your card to someone else. 

To Obtain the Gift Card of Your Choice 

If you find yourself with a gift card and wonder what to do with it, certain brand stores allow you to use their gift cards to purchase other cards available in their store.  

Remember that only specific locations, such as grocery stores, online sellers, and supermarkets, sell other gift cards.  

Moreover, several websites allow you to trade in gift cards and receive a portion of their value in return. While you won’t get the card’s total value, it’s better than letting a gift card sit unused. 

Conclusion 

All in all, gift cards have transformed how people exchange gifts by providing a versatile and convenient alternative to traditional presents. Whether store-based or open-loop, these cards offer recipients the freedom to choose while ensuring safety and ease of access.

The benefits extend beyond material gifts, allowing for memorable experiences. Adopting the simplicity and adaptability of gift cards adds a modern touch to the age-old tradition of giving, ensuring that the act remains thoughtful and tailored to individual preferences.