Gift Cards as Payment: A Convenient Alternative

Gift cards have become a popular payment method, offering a convenient alternative to traditional payment methods. In fact, according to a recent survey, 70% of consumers prefer to use gift cards for purchases.

Gift cards can be used to make purchases online or in-store, and many retailers now offer digital gift cards that can be sent via email or text message. This makes it easy to send and receive gift cards, eliminating the need for physical cards.

Some gift cards can be used to make purchases at multiple retailers, making them a great option for those who shop at multiple stores. For example, a gift card from a major department store can be used to make purchases at various affiliated stores.

By using gift cards, consumers can avoid overspending and stick to their budgets.

Buying gift cards with a credit card can be a convenient option, especially when combined with a purchase you're already making, like groceries.

You can easily buy gift cards with a credit card at various retailers, from local stores to online marketplaces.

This approach also lets you earn rewards for each dollar spent, which can be a significant perk if your credit card offers bonus rewards in specific categories.

Some people even use this strategy to save money on specific purchases, like a Disney trip, by buying gift cards when they're discounted.

Here are some key benefits of buying gift cards with a credit card:

By taking advantage of these benefits, you can make the most of your gift card purchases and get more value out of your credit card rewards.

Accepting digital vouchers with Thunes offers several key benefits, including the ability to split payments at checkout, allowing consumers to top up vouchers by combining two payment methods in a single transaction, resulting in higher transaction values.

This can drive business growth by providing guaranteed, prepaid revenue, as well as increased brand exposure and word-of-mouth marketing through gifting.

The prepaid nature of funds helps to protect your revenue and reduce instances of fraud and chargebacks.

A significant percentage of users consider prepaid vouchers and gift cards the safest payment method, with 32% of users opting for this secure option.

Accepting digital vouchers also enables you to increase sales volumes by allowing customers to combine their vouchers with other payment methods as needed.

With Thunes, you can manage the payment process, including financial reconciliation and custom reports, so you can reap the rewards without the accounting headaches.

Earning rewards points is one of the biggest benefits of buying gift cards with a credit card. You can earn points on your gift card purchases, which can be redeemed for things like flights, hotel stays, and merchandise.

Some credit cards offer bonus rewards in specific categories, such as the Blue Cash Preferred Card from American Express, which earns 6 percent back on gift card purchases at U.S. supermarkets. Others, like the Chase Freedom Unlimited, offer 3 percent back on dining and drugstore purchases, including gift cards.

Related reading: How to Get Cash Back from Gift Card

The type of rewards you can earn depends on the credit card you use. You can earn cash back, flexible rewards, or points that can be used in a specific airline or hotel program. For example, the Ink Business Cash Credit Card earns 5 percent back on office supply store purchases, including gift cards.

If you have a rewards credit card, make sure to check your card's terms and conditions to see which categories earn bonus rewards. This way, you can maximize your earnings and get the most out of your gift card purchases.

Take a look at this: How to Earn Google Play Gift Card

To buy gift cards, you can simply bring them to the register and choose credit as your form of payment, just like buying any other item in person. This process is the same whether you're buying gift cards online or in person.

If you're buying gift cards online, head to the website, add the cards to your cart, and then head to the checkout page. Choose "credit card" as your payment method and type in your details. Then complete the online purchase.

You can buy gift cards with a credit card at many stores, including supermarkets, drugstores, and even gas stations. However, be aware that upfront fees can apply, and sometimes these purchases may be coded as a cash advance, which can result in costly fees.

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To buy gift cards, you can use a credit card, either in-store or online. You can buy gift cards with a credit card at a store, simply bring the gift card to the register and choose credit as your form of payment.

If you're buying gift cards online, head to the website where you'll buy the cards. Add the gift cards to your cart, then head to the checkout page. Choose "credit card" as your payment method, and type in your details.

Buying gift cards with a credit card can offer convenience and other benefits, such as the potential to earn rewards. You may be able to earn cash back or travel points for gift card purchases, although how much you'll earn depends on the cash back credit card or rewards credit card you have.

You can purchase Visa gift cards with a credit card at many supermarkets and drugstores. However, purchase fees of $2.95 to $6.95 can apply, and you'll also want to make sure your issuer won't count the purchase as a cash advance.

Related reading: Where to Use Apple Store Gift Card

Some gas stations, supermarkets, and drugstores will let you purchase a prepaid card with a credit card. However, upfront fees can apply, and these can sometimes be coded as a cash advance to your issuer, which will mean paying costly cash advance fees. It's best to ask what the purchase will be coded as before swiping.

Here are some popular places where you can buy gift cards with a credit card:

When choosing a gift card, you have the option to use a hosted payment page or a customisable white-label UX. This flexibility is a great advantage, especially if you're looking to integrate gift card purchases into your existing app or website.

You can redirect customers to a secure payment interface hosted by the voucher provider, which is a convenient option. This way, you don't have to worry about setting up your own payment system.

Alternatively, you can customise the payment interface to match your own app or website, which can enhance the overall user experience. This is a great option if you want to maintain a consistent brand image.

Either way, the choice is yours, and it's up to you to decide what works best for your business.

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