Gift cards represent a significant segment of retail spending, with consumers purchasing billions of dollars annually for gifting and personal use. While many shoppers buy gift cards at face value, savvy consumers have discovered multiple strategies to earn cashback, rewards, or discounts. By implementing these approaches, buyers can effectively reduce the cost of gift cards below their face value, creating a form of arbitrage that stretches shopping dollars further.
The concept of earning rewards on gift card purchases might initially seem counterintuitive, as many retailers exclude gift cards from promotional offers. Several legitimate channels allow and even encourage consumers to earn rewards when purchasing gift cards. Understanding these opportunities helps shoppers maximize the value of every gift card transaction, whether for personal use or as presents for others.
Shopping portals
Digital shopping platforms offer another layer of rewards potential for gift card purchases:
- Cashback websites – While many exclude gift cards from earning rewards, some specifically allow cashback on gift card purchases from select merchants, creating opportunities for additional savings.
- Airline shopping portals – Major airlines operate reward portals where members earn miles for shopping with partner retailers. Occasionally, these portals include merchants that award miles for gift card purchases, effectively providing a discount in the form of travel rewards.
- Dedicated cashback apps – Mobile applications offer discounts for gift card purchases from participating retailers. These apps regularly feature limited-time promotions that include gift card rewards.
After purchasing gift cards through these channels, you can quickly check your mygift balance through the appropriate retailer portal to verify the loaded value before buying. This verification step ensures you’re working with the correct balance when planning to maximize your discounted gift cards.
Retail promotions and bonus offers
Retailers themselves frequently provide incentives for gift card purchases:
- Promotional bonus cards – Many restaurants and retailers offer bonus cards with gift card purchases during specific periods (typically holidays). For example, purchasing a $50 gift card might come with an additional $10 promotional card, effectively creating a 20% return on the initial purchase.
- Membership program bonuses – Some retail membership programs award extra points or benefits for gift card purchases within their ecosystem. These loyalty program bonuses significantly enhance the effective discount on gift card purchases.
- Bulk purchase discounts – Warehouse clubs like Costco and Sam’s Club regularly sell popular gift cards at discounted rates. These discounts represent immediate cashback in the form of upfront savings rather than rewards earned after purchase.
Gift card exchange strategy
For advanced practitioners, gift card exchanges create additional opportunities:
- Discounted secondary market cards – Websites sell unwanted gift cards below face value. Purchasing these already-discounted cards with a rewards-earning credit card or through a shopping portal creates a double-dipping opportunity.
- Strategic reselling – Some individuals purchase gift cards when extreme stackable rewards are available, then resell unwanted cards on exchange platforms, effectively “cashing out” their rewards at accelerated rates.
- Arbitrage opportunities – Temporary misalignments between purchase rewards and secondary market values occasionally create arbitrage situations where cards are purchased with significant rewards and sold at minimal discount, generating essentially free rewards.
By thoughtfully implementing these strategies, consumers significantly reduce the effective cost of their gift card purchases, creating meaningful savings on planned spending while still enjoying the convenience and flexibility that gift cards provide.
