Can You Buy Gift Cards With Store Credit?

Can You Buy Gift Cards With Store Credit?
Can You Buy Gift Cards With Store Credit?

Answer:Can You Buy Gift Cards With Store Credit?

The concept of gift cards has become increasingly popular to both old and young. They offer solution for those unsure about what to gift or looking to provide someone the freedom to choose their own present. But what happens when you already have store credit at a particular retailer? Can you use that credit to purchase gift cards? Let’s explore situation in this article ranging from understanding how store credit works, how to make purchase and making purchase, its typical acquisition methods, to the regulations and restrictions law attach to its.

Store Credit: What is it and how is it used?

What Is Store Credit

Store credit is a return mechanism where, in lieu of cash, a retailer grants customers credit that can be utilized for future purchases within the same store or retail chain. This generally occurs when a product is returned without a receipt, or when the store has a ‘credit only’ return policy. Rather than a refund directly to the customer’s bank account or repayment to a credit card (as with conventional purchases),
store credit is specific to the store and doesn’t have a cash value outside of it. Store credit is usually issued as a gift card or an e-credit that presents a certain value and can only be redeemed by purchasing goods from the same retail chain.

How Store Credit Work

Store credit is a financial concept commonly used by retailers to offer customers a convenient way to shop and make purchases within their store ecosystem. Here’s how store credit works in simple terms:

Accumulation: Store credit is usually accumulated through various means, including product returns, refunds, or participation in loyalty programs. For example, when you return an item you bought at a store, instead of providing a cash refund, the store may offer you store credit in the form of a store balance.

Virtual Wallet: Once you have store credit, it’s like having money stored in a virtual wallet associated with that specific retailer. This credit is typically recorded in your customer account with the store.

Usage Limitation: Store credit can often only be used at the store where it was issued. It’s not transferable to other retailers or individuals.

Payment Method: When you make a purchase at that store, the system may ask if you want to use your store credit as a payment method. If you agree, the cost of your purchase will be deducted from your store credit balance.

No Expiry: In many cases, store credit doesn’t have an expiry date, which means you can use it whenever you choose, as long as the store remains in business.

Partial Usage: You can choose to use part of your store credit for a purchase and retain the remaining balance for future transactions. This flexibility can be convenient, especially if you have a substantial store credit amount.

Tracking: The store typically keeps a record of your store credit balance, so you can easily check how much credit you have left.

Store-Specific: It’s important to note that store credit is specific to the retailer where it was issued. You can’t use it at other stores or convert it into cash.

Can You Buy Gift Cards With Store Credit?

The answer is yes, some retailers are quite flexible and customer oriented. They allow you to use your store credit to purchase gift cards. This is a win win situation because it enables you to extend the utility of your store balance and still give a thoughtful gift.

Can You Use Store Credit to Purchase Gift Cards?

Taking into account the various policies of different retail outlets, the types of purchases allowed with store credit can differ significantly. Although most stores permit the acquisition of their products or services using store credit, the purchase of gift cards often falls under certain restrictions. This is largely due to a preventative measure against fraud, as gift cards can be sold for cash or redeemed at their full value in a way that store credit generally cannot. It’s important to note, however, that some retailers might accept store credit to buy gift cards. Therefore, it’s always suggested to contact the specific store to understand their policy regarding the use of store credit

Why Some retailers Don’t Allow Purchase Of Gift Cards With Store Credit

Retailers have specific reasons for not allowing the purchase of gift cards with store credit, and these reasons often revolve around financial and operational considerations:

Revenue Impact

One primary reason retailers restrict the use of store credit for buying gift cards is the potential impact on their revenue. When customers use store credit to purchase gift cards, the retailer doesn’t receive new revenue for that transaction. Instead, the store credit is simply transferred to a gift card, which could be used later or even forgotten, effectively reducing the retailer’s income.

Profit Margins

Retailers often make a profit from the sale of gift cards. When a customer buys a gift card, they might pay a small fee or the retailer may expect the recipient to spend more than the card’s value when redeeming it. Allowing store credit to be used for gift card purchases bypasses these potential profit margins.

Tracking and Accounting

Retailers use complex accounting systems to keep track of store credit, gift card sales, and redemptions. Allowing the use of store credit to purchase gift cards can complicate these processes, making it challenging to maintain accurate financial records.

Promotions and Discounts

Store credit is typically a result of returns or promotions. Allowing store credit to be used for gift cards could lead to unintended consequences, such as customers converting promotional store credit into gift cards and potentially circumventing the retailer’s promotional intentions.

Policy Consistency

Retailers often have clear policies on how store credit can be used, and these policies help maintain consistency and fairness for all customers. Allowing store credit for gift card purchases might create confusion or disputes among customers who have different forms of credit.

Preventing Abuses

To prevent potential abuse, retailers may restrict the use of store credit for specific purposes, like direct product purchases. Allowing store credit for gift cards might create opportunities for customers to exploit these systems.

Operational Efficiency

Streamlining transactions at the checkout counter is crucial for a smooth shopping experience. Allowing the use of store credit for gift cards could complicate the checkout process and lead to longer wait times.

There might be legal and regulatory considerations that restrict the use of store credit for certain transactions, including gift card purchases. Retailers must adhere to these regulations to avoid legal issues.

Note that, retailers often limit the use of store credit for purchasing gift cards due to the impact it can have on revenue, profit margins, and operational efficiency, as well as to maintain consistency and comply with regulations. These policies are designed to protect the retailer’s financial interests and ensure a fair shopping experience

Purchase Of Gift cards With Store Credit

How To Buy Gift cards With Store Credit

Buying gift cards with store credit can be a straightforward process, but it’s essential to understand that not all retailers permit this transaction. Here are the general steps by step to follow if a retailer allows you to purchase gift cards using your store credit:

Visit the Store or Website:

First is to find out if they have website or not, either visit their physical store or go to their website to make the purchase.

Check Store Policies

Start by reviewing the store’s policies. Not all retailers permit the purchase of gift cards with store credit, so it’s crucial to confirm that this option is available.

Select the Gift Card

Choose the gift card you want to purchase. Most stores offer a variety of gift card options, including those for their own brand or for other popular retailers.

Add to Cart or Request Assistance

If you’re buying the gift card online, add it to your shopping cart like any other item. If you’re in a physical store, you may need to request assistance from a store employee.

Proceed to Checkout

If you’re shopping online, proceed to the checkout page. Here, you’ll typically see an option to apply your store credit as a payment method. Select this option.

Apply Store Credit

During the checkout process, you’ll be prompted to choose your payment method. Select your store credit as the payment source. The cost of the gift card will be deducted from your available store credit balance.

Complete the Transaction

Follow the prompts to complete the transaction. This usually involves confirming your order and, if shopping online, providing your shipping information or selecting an e-gift card delivery option.

Receive Confirmation:

After successfully purchasing the gift card, you should receive confirmation of the transaction. This may be in the form of an email or a printed receipt if you’re in a physical store.

Use the Gift Card:

Once you have the gift card, you can use it for your own purchases or give it to someone as a gift. Gift cards are usually accepted as a form of payment at the retailer or brand specified on the card.

It’s important to remember that the ability to purchase gift cards with store credit varies from one retailer to another. Always check the store’s policies and inquire with their customer service or store associates if you have any doubts or questions about the process. Additionally, ensure that the gift card you purchase aligns with your preferences or gifting needs, as some gift cards may have limitations on where they can be used.

Exploring Gift Card Purchases

The Versatility of Gift Cards

Gift cards have gained popularity over the years for their usefulness and adaptability, rendering them a favorite choice of gifting across online and in-store retailers. Undeniably, the beauty of gift cards lies in their operation. These are essentially prepaid stored-value money cards that carry a designated amount of money to be used at the choosing of the recipient.

The applicability of these cards, although generally at the store or brand issuing them, can be extended to associated brands. This is especially true in the case of gift cards issued by financial institutions like Visa or MasterCard.

Yet, it is important to bear in mind that while gift cards have a broad range of applications, they may carry certain restrictions that are at the discretion of the issuing authority. Consequently, users are advised to familiarize themselves with these limitations to ensure seamless transactions.

Exploring the payment methods for buying gift cards

Most retailers allow customers to use cash, debit, or credit to purchase them.

However, when it comes to purchasing gift cards with store credit, policies can differ substantially.

Some retailers might allow this method of payment, while others may not.

In most cases, store credit acts as a specific type of exchange for returned items and thus, may not apply to the purchase of gift cards.

Before attempting to make such a purchase, it would be advisable to review the store’s policy or ask a store employee as individual store policies can vary greatly.

Gift Card Policies

Navigating the multifaceted world of gift card policies can potentially introduce some intricacies to their application and procurement. Many retail establishments stipulate specific rules and regulations which might include certain limitations such as the prohibition of using these cards along with coupons and other promotional offers or barring them from buying particular types of merchandise.

Furthermore, a prevailing regulation with gift cards is that they are typically not exchangeable for cash, except in a handful of states where the law mandates otherwise. To get the full picture of any imposed limitations, it’s absolutely pivotal to thoroughly read and understand the terms and conditions linked with each gift card purchase

Store Credit and Gift Card Purchases: Laws and Regulations

Within the United States, laws regulating store credit utilization and gift card procurement vary significantly amongst different states and retailers. As per the Federal Trade Commission (FTC), some fundamental regulations were established by the Credit CARD Act of 2009. According to this act, most gift cards should not expire within a time frame of five years since their activation date and stringent restrictions were placed on dormancy, inactivity, and service fees. However, the question of using store credit to purchase gift cards remains nebulous as this legislation does not explicitly address this issue, rendering it primarily to the judgment of individual retail businesses.

The policies of major retailers vary regarding the use of store credit to purchase gift cards. For instance, stores like Target and Walmart do not permit customers to use store credit to buy gift cards. However, Home Depot and Lowes allow customers to use store credit to purchase third-party gift cards but not for buying their own store gift cards. Amazon allows customers to use account credits towards the purchase of most items, including gift cards. Overall, it’s essential for customers to inquire or research a retailer’s specific policy before attempting to use store credit for buying a gift card.


Can I use my store credit to buy gift cards online?

The online purchase of gift cards with store credit may vary by retailer. Check their website or contact customer support for clarification.

What happens if I don’t use my store credit?

Store credit typically remains in your account until you use it for future purchases within the same store.

Are there any restrictions on the types of gift cards I can purchase with store credit?

It depends on the retailer’s policies. Some may limit your choices, while others allow flexibility.

Can I transfer gift card balances to someone else?

Generally, gift card balances are non-transferable, but policies may vary between retailers.

Are there expiration dates for store credit or gift cards?

Expiry dates vary by retailer and may not apply to all store credits or gift cards. Be sure to check the terms and conditions for each.


In conclusion, the ability to buy gift cards with store credit depends on the policies of the specific retailer. While some allow it, others don’t. It’s essential to check with the store and understand their guidelines before attempting such a transaction. Gift cards, when used wisely, offer a great way to share the joy of gifting, whether it’s for others or yourself.

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