Sometimes. Store gift cards usually code as ordinary purchases and count toward minimum spend with most issuers. American Express is the big exception: its welcome offer terms say purchases of gift cards and prepaid cards don’t count. Even where gift cards aren’t excluded, buying lots of them, especially Visa and Mastercard gift cards, can get a bonus clawed back or an account closed.
If you’re short of a deadline, a small closed-loop gift card for a store you use weekly is low risk. Anything more aggressive is a bet with your bonus.
What do the issuers’ terms actually say? #
American Express #
Amex’s welcome offer terms typically say eligible purchases don’t include fees or interest, purchases of travelers checks, purchases or reloading of prepaid cards, purchases of gift cards, person-to-person payments, or other cash equivalents. Amex’s general rewards terms use similar language. Refunded or returned purchases don’t count either, and Amex may reverse a bonus it paid on spending that didn’t qualify.
Amex is also known for reviewing accounts after a bonus posts. Cardholders call its enforcement group the “rewards abuse” team. A bonus that has already landed isn’t necessarily safe.
Chase, Citi, Capital One and others #
These issuers’ bonus terms generally exclude cash-like transactions such as money orders, wire transfers, cash advances and similar items, rather than gift cards by name. In practice, a store gift card bought at a grocery store or on a retailer’s site usually counts as a normal purchase. That’s a pattern, not a promise. Any issuer can decide a pattern of spending was abusive, and large Visa or Mastercard gift card purchases are the pattern that gets flagged.
How can a bank tell you bought a gift card? #
Several ways:
- Line-item data. Some large retailers send detailed transaction data to card networks, which can show that the purchase was a gift card.
- Amounts. A $505.95 charge at a supermarket looks like a $500 Visa gift card plus a $5.95 activation fee.
- Patterns. Several round-number charges at an office supply store in one week look different from normal shopping.
None of this is guaranteed to flag you, but it’s why “they’ll never know” is bad advice.
Closed-loop vs. open-loop gift cards: which is riskier? #
Closed-loop gift cards work at one merchant or group, like Amazon, Home Depot, Starbucks or a grocery chain. Buying one is essentially prepaying for things you’d buy anyway. Outside of Amex, a modest closed-loop card is the lowest-risk way to close a small gap.
Open-loop gift cards are prepaid Visa, Mastercard or Amex cards that work almost anywhere. Banks treat them as cash equivalents, because they can be turned back into cash. They carry activation fees and are the purchases most likely to be excluded or flagged.
How do you close a small minimum spend gap safely? #
- Know the real number first. Many people buy gift cards when they’re actually closer than they think, or further than a gift card can fix. Check how much counted spending you have, minus any returns.
- Use closed-loop cards for stores you visit weekly. Groceries, gas, or a pharmacy you’d spend $100 at this month anyway.
- Keep it proportional. A $100 grocery gift card alongside normal shopping is ordinary. $2,000 of gift cards in a day is not.
- Skip open-loop cards on Amex entirely. The terms exclude them, so they won’t help and could hurt.
- Don’t count on returns. A returned purchase comes off your progress, sometimes after the deadline has passed.
The most common reason people end up at the gift card rack is losing track of the deadline. Credit Card Central shows a progress bar for each sign-up bonus, the daily pace you need (for example, “about $81 a day to make it”), and reminders 30, 7 and 1 day before the deadline. You log purchases as you go, and nothing is linked to your bank. More in how to track minimum spend without stress.
What are better alternatives to gift cards? #
- Prepay bills. Many insurance, utility, phone and internet providers let you pay ahead or carry a credit balance.
- Pay federal taxes. The IRS’s card processors charge about 1.75% to 1.85% for personal credit cards, according to the IRS payment page. That’s often worth it to finish a large bonus. See is it worth paying your taxes with a credit card.
- Pay rent. Some landlords and rent platforms accept cards, usually for a fee. Is it worth paying rent with a credit card runs the numbers.
- Time a big purchase. Open the card a couple of weeks before a car repair, a vacation booking, or a Costco stock-up. The best credit card for Costco covers that trip.
- Cover a group expense. Put a group dinner or shared booking on your card and get paid back through a payment app. Person-to-person payments themselves don’t count on Amex, but the original purchase does.
Frequently asked questions #
Can I buy Visa gift cards to meet minimum spend? #
You can buy them, but it’s the riskiest option. Amex excludes gift card and prepaid card purchases from welcome offer spending, and other issuers watch for large open-loop gift card purchases. Activation fees also make them cost more than face value.
Do grocery store gift cards count toward minimum spend? #
With most issuers other than Amex, a store gift card bought at a supermarket codes as a grocery purchase and counts. Keep the amount modest and for a store you actually use.
Can American Express see if I buy gift cards? #
Often, yes. Many large retailers send item-level transaction data, and certain amounts and patterns point to gift cards. Amex’s terms exclude them from welcome offer spending either way.
What happens if my bonus is clawed back? #
The issuer removes the bonus points or cash from your account. If you’ve already spent them, the balance can go negative, and in serious cases the issuer may close your accounts.
Do returns reduce my minimum spend progress? #
Yes. Refunded purchases are subtracted from your counted spending. If a return posts after you think you’ve finished, you may fall short without realizing it.