Gift cards sit in an awkward place for cashback. They look like ordinary products, but they are really stored money, and shops and networks treat them differently from normal goods. There are two separate questions. First, do you earn cashback when you buy a gift card? Second, what happens to cashback when you pay for an order with a gift card? This guide covers both in general terms. The shop's own terms always decide, so read them before you rely on a reward.

Buying a gift card

Many shops exclude gift cards from cashback. The reasons are practical: a gift card is usually sold at face value, so the shop has little margin to share, and cards can be misused for fraud. Where a reward is offered, it is often lower, and some shops cap the amount per order. Because this changes by shop and sometimes by season, you should check the shop page and the shop's terms for the current rule before you buy.

There is also a difference between the shop's own card and a third-party card, such as a card for another brand sold in a supermarket or a general retailer. Third-party cards are the most likely to be excluded.

Paying with a gift card

If you pay for an order partly or completely with a gift card, the cashback is often based on the amount you paid with money. A shop may count the whole basket, or only the part not covered by the card. Orders paid fully with credit are sometimes excluded. If a shop does not state this, assume that only the real-money part counts, and treat anything more as a bonus.

There is a related point for gift cards you already own. If you got a card as a present, using it costs you nothing, so even a reduced reward is a bonus. If you buy a card to use later, compare the value of the possible cashback with the loss of flexibility, since a card can only be used in one place.

Promotional gift cards and bonus credit

Some shops add a bonus card if you spend a certain amount, or run a "buy a card, get extra value" promotion. These promotions have their own conditions and are separate from cashback. They can combine with it or not. If both appear, work out the total benefit, then check whether one cancels the other in the terms. Our guide on combining cashback and coupons explains the general logic that applies to such offers.

Refunds on orders paid with gift cards

A returned item bought with a gift card usually goes back to the card or to store credit, not to a bank card. The reward is reversed in the same way as for any return. For that reason, if you expect to return something, keep in mind that the reward on the returned part disappears even though you received credit instead of money.

Gift card scams to avoid

Gift cards are a favourite tool for fraud. A caller or message that insists you pay a debt, a fine or a "security fee" with gift cards is not legitimate. A genuine shop does not demand gift cards as a payment for a normal order. Also be careful with cards from unofficial resale sites at a deep discount, since the balance may already be used. If you suspect a problem, contact the card issuer at once.

Checking the rules for a shop

• Look at the shop page here for any note on gift cards or exclusions.
• Read the shop's own cashback or affiliate wording if it is published.
• Check whether your order mixes gift cards with regular goods.
• Keep the order confirmation, which shows how you paid.
• If unsure, order a small item first and see how it is tracked.

What this means for your real saving

Since a gift card has no discount of its own, the main value of cashback here is small or none. Think of it as an occasional bonus rather than a plan. A better use of your attention is usually the price of the goods, the delivery and the return terms, which is exactly what we line up in one place for each shop.

Digital codes and delivery

Many gift cards are delivered by email as a code. Check that the shop sends it to the address you entered, keep the email and redeem the code soon rather than leaving it for months. If the shop closes or changes its terms, a forgotten card can lose value, and rules on expiry dates and fees differ by country and state. Also note that digital delivery can make returns harder, since a code that was sent is often not refundable.

Before you give a card as a present, think about whether the recipient would rather choose from the shop's own range or get a card for the shop where they shop most.

How we handle it

We check shop information daily and note conditions such as exclusions where we know them. Cashback is credited to your free account after the shop confirms the sale and only for what the shop counts. Payout is by PayPal from 20 USD. Our terms explain the rules. We do not sell gift cards or any other goods, and this text is not legal advice.