Do You Get Cash Back When Buying Gift Cards?

Quick answer: Yes, you can. There are a few ways to do it, and they are not all equal. The simplest is to buy through GiftCardGranny, where you save two ways at once: many cards are already discounted below face value, and select brands earn cash back through Granny's rewards program. Beyond that, the right credit card can earn rewards on gift cards bought at certain stores, and a few retailers run their own cash-back deals. Granny will walk you through all of it, and where the fine print tends to trip people up.

Cash back or a discount? They are two different things

People use "cash back" and "discount" like they mean the same thing, but they save you money at different moments.

A discount lowers the price up front. A $50 card for $44 is a 12 percent discount, and you pocket the difference the moment you buy.

Cash back comes back to you after the purchase, as a reward or credit you can use later. Buy that same $50 card and earn a couple of dollars back, and the savings land in your rewards balance rather than the price tag.

The good news with GiftCardGranny is that you do not have to choose. Many cards are discounted, and select brands also earn cash back, so a single purchase can save you both ways.

How cash back works on GiftCardGranny

Granny's whole reason for existing is helping you pay less than face value for gift cards you were going to buy anyway. That happens two ways.

Discounted cards. A large share of the catalog sells below face value, and some brands run deeper deals or promo codes on top. That is money off the price, right away.

Cashback Rewards. On top of the discounts, GiftCardGranny runs a cash-back rewards program. Select brands earn cash back when you buy them, shown right on the brand's page before you check out. Rates are set per brand, so some cards earn a flat amount back, some earn a percentage, and some do not earn cash back at all. There are also other ways to earn, like buying from a Granny Partner or signing up for the newsletter. It is worth a quick look at the brand page before you buy, because the earn rate is listed there and it changes by brand.

The honest version: not every card is discounted, and not every card earns cash back. But because Granny shows both the discount and the cash-back rate up front, you always know what you are getting before you pay.

Other ways to get cash back on gift cards

GiftCardGranny is the easy button, but it is not the only route. Two others are worth knowing.

The right credit card. Some cards earn bonus rewards in categories like groceries, and grocery stores often sell third-party gift cards at the register. Buy a gift card there on a card with a grocery bonus, and it can earn the same rewards as your groceries. The catch is in how the purchase is coded. Card networks tag every purchase with a category code, and a gift card bought at a grocery store may count as groceries, while the same card bought from a standalone kiosk or a brand's own site often does not. Prepaid Visa and Mastercard gift cards are the trickiest, because they are frequently coded as financial products and earn no bonus at all. Always check your card's terms, and never carry a balance chasing rewards, since interest wipes out any cash back fast.

Store programs. A few retailers give a form of cash back on their own. Target's RedCard, for example, takes 5 percent off most purchases, gift cards included, which works like an instant discount. Some drugstores and grocery chains run occasional "buy this much in gift cards, get a reward" promotions. These come and go, so read the fine print for which cards qualify.

How to stack your savings

The move is to layer the savings that actually stack. Start with a discounted card from GiftCardGranny, add the cash back where the brand offers it, and if you are buying somewhere that takes a rewards credit card in a bonus category, pay with that. You will not always hit all three, but even two of them turns a full-price gift card into a real saving.

A couple of things to watch

• Read the earn rate before you buy. Cash back is set per brand and can change, so the number on the brand page today is the number that counts.
• Prepaid Visa and Mastercard cards usually earn no credit-card bonus. They are often coded as financial products, so do not count on rewards there.
• Skip the too-good-to-be-true deals. A stranger on a random marketplace advertising a deeply discounted card is where a lot of gift-card fraud starts. Stick to GiftCardGranny and other reputable sources.

The bottom line

So, do you get cash back when buying gift cards? Yes, and you have options. A rewards credit card can earn on gift cards bought at the right store, and a few retailers run their own deals. But the simplest way to save is to buy through GiftCardGranny, where many cards are already discounted and select brands earn cash back on top, with both numbers shown before you pay. Check the brand page, stack what stacks, and keep more in your pocket.

Want the discount side of the story? See The Pros and Cons of Buying Discount Gift Cards, and if you are new to buying deals online, Are Gift Cards Safe? How to Buy Them Without Getting Scammed.

Frequently asked questions

Do you get cash back when buying gift cards? Yes. You can earn cash back through a rewards credit card at certain stores, through some retailer programs, and through GiftCardGranny, where select brands earn cash back and many cards are also discounted below face value.

Does GiftCardGranny give cash back? Yes. GiftCardGranny runs a Cashback Rewards program, and select brands earn cash back when you buy them, shown on the brand page before checkout. Rates are set per brand, so some cards earn cash back and some do not. Many cards are also discounted on top.

Is it better to buy discounted gift cards or earn cash back? You often do not have to pick. A discount lowers the price up front and cash back comes back to you afterward, and on GiftCardGranny a single purchase can do both. If you can only get one, a straight discount is the surer saving.

Can you earn credit card rewards on gift cards? Sometimes. A card with a bonus category like groceries can earn on gift cards bought at a grocery store, because of how the purchase is coded. The same card bought from a kiosk or brand website often earns nothing extra, and prepaid Visa or Mastercard cards usually earn no bonus at all.

Do prepaid Visa and Mastercard gift cards earn cash back? Usually not from a credit card, since they are often coded as financial products rather than retail purchases. Check your card's terms before counting on it.

How do I earn cash back on gift cards with GiftCardGranny? Buy from a brand that shows a cash-back rate on its page, and the reward is credited through the Cashback Rewards program. You can also earn other ways, like buying from a Granny Partner or signing up for the newsletter.