[DISCLOSURE: Cards from our partners are mentioned below.]
[Update: Some offers mentioned below have expired. You can view the current offers from our partners if available here — Blue Cash Everyday card from American Express, American Express Premier Rewards Gold, CitiBusiness AAdvantage World Mastercard, Chase Freedom and Discover it.]
For some, gift cards are the perfect present while others find them to be the choice of last resort when they have run out of ideas. However you arrived at your decision to purchase a gift card, you can earn tremendous rewards for yourself when you purchase gift cards using a credit card.
Maximizing Category Bonuses
The key to earning the most points, miles, and cash back from your gift card purchases is to understand how different credit cards offer bonuses for purchases from specific types of retailers. Then it is simply a matter of finding desirable gift cards at stores that fit within the designated merchant categories.
Here are some of the most popular merchant categories where gift cards can be purchased, and the most widely held credit cards that offer bonus rewards there:
Supermarkets have some of the most extensive selections of gift cards and there are many credit cards that offer extra rewards for purchases there.
- The American Express Blue Cash Preferred offers 6% on up to $6,000 spent annually at U.S. supermarket stores, then 1%.
- The Blue Cash Everyday card from American Express offers 3% cash back on up to $6,000 spent annually at U.S. supermarket stores, then 1%.
- The American Express Hilton HHonors cards also offer 6x rewards at supermarkets.
- The American Express Premier Rewards Gold offers double Membership Rewards points.
- Chase’s Disney Premier card offers double Disney Rewards Dollars.
Office Supply Stores
Major office supply stores such as Staples, Office Max, and Office Depot sell a wide variety of gift cards.
- The American Express SimplyCash card offers 5% cash back rewards from office supply stores.
- The Chase Ink line of business cards offer 5x rewards in cash back or Ultimate Rewards points.
- The CitiBusiness AAdvantage World Mastercard offers double rewards.
- Chase MileagePlus Explorer Card for Business offers double rewards.
Most drug stores have a large gift card rack prominently displayed.
- The American Express Hilton HHonors cards offer 6x rewards for drug store purchases.
- Chase’s Amazon.com rewards card offers double points.
Some department stores such as Sears carry a selection of gift cards.
- The American Express Blue Cash Preferred offers 3% cash back for purchases from department stores.
Another way to maximize your credit card rewards is by taking advantage of bonus categories of spending that rotate each quarter.
- Chase Freedom: 5X, up to $1500 per quarter in spend. This quarter’s bonus categories include purchases from airlines and hotels as well as retailers Best Buy and Kohl’s.
- Discover: 5% cash back on up to $1,500 spent per quarter. Eligible retailers this quarter include department stores and all online shopping until the end of the year.
- Citi Dividend Platinum Select: offers 5% on merchants each quarter, up to $300 cash back per year. The current bonus categories this quarter include Macy’s, Electronics stores and Toy stores.
Outside of gift card racks, you can always earn rewards for purchasing gift cards directly from retailers that are included within bonus categories. These can include restaurants, department stores and travel providers.
To be sure, giving a gift is an act of generosity and a way of expressing yourself to your friends and loved ones. But if you were going to purchase a gift card, it is only smart to receive the most credit card rewards possible.
At publishing time, the American Express Blue Cash Preferred, Blue Cash Everyday card from American Express, American Express Premier Rewards Gold, CitiBusiness AAdvantage World Mastercard, Chase Freedom and Discover it are offered through Credit.com product pages, and Credit.com is compensated if our users apply and ultimately sign up for this card. However, this relationship does not result in any preferential editorial treatment. This content is not provided by the card issuer(s). Any opinions expressed are those of Credit.com alone, and have not been reviewed, approved or otherwise endorsed by the issuer(s).
Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.
Image: Maegan Tintari, via Flickr