Thread: Buying gift cards from the grocery store w/ credit card?

I thought of an idea but don't know if it will work. Can I use my credit card that gives 5% at the grocery store and use it to buy the gift cards sold at check out, and get 5% on those gift cards?

note: This would be on my Blue Cash after I met the 5% requirement

I see no reason why such a purchase would not be counted as a grocery store transaction. Give it a trial by buying the lowest denomination gift card and then verify the rewards accrual on the following billing statement.

Actually, this is a really, REALLY great idea if it works. At the grocery store I go to there are gift cards for sale for almost any place you can think of. If you can buy them with a credit card that gives 5% cash back that would be the same as saving 5% at all those places. I would really like to hear for sure if this works.

I've been wondering about this for a while too, especially when grocery stores are 5% back with the Freedom or Discover.

Looks like gift cards shouldn't be a problem, but you might have trouble trying to get prepaid debit cards.

I might try it out in March with my Discover if I don't reach the cap for the 5% by the end of the month.

Update: Get 6% cash back at supermarkets with the AmEx Blue Cash Preferred

What grocery stores charge transactions fees? I knew they must get a cut but I figured the grocery stores got a commission of the sale from the company the card was for. Would that be why grocers are heavily promoting the gift cards during the past few years? Because profit is made on commissions AND transaction fees?

The Visa gift cards in that link, those always charge a fee the customer has to pay is that right?

Someone brought this up before on here before I think but I totally forgot about it. I can't wait to try it!!

I bought a gift card for another store at Walmart and they charged like a $5 fee just to buy the card and it was only for like $25!

If these gift-cards were ever sold in a casino, they'd be labeled as a classic SUCKER-BET.

Surely you can find somewhere better to lose your money.

I can tell you that Meijer (grocery store chain in IL/IN/KY/MI/OH)'s policy is that they don't accept credit cards for the purchase of other stores' gift cards. They do allow you to use them to purchase Meijer gift gards; I've done that for years.

If you're looking for an easy discount on gift cards, you're probably better off buying from one of the many gift card exchange web sites. You won't have to wait to redeem a reward and you will in most cases get a bigger discount as well.