When you receive a gift card your first thought is probably where you can use it to treat yourself. But did you know that gift cards may also provide a convenient way to pay certain bills? While not accepted universally gift cards can cover more than just gifts.
In this comprehensive guide, we’ll explore how prepaid and network-branded gift cards work, where they are accepted and tips for seamlessly integrating gift card bill payment into your financial routine
How Do Gift Cards Work?
There are two main types of gift cards to understand:
Prepaid Gift Cards – These are issued by banks and come without an attached credit network, like Visa or Mastercard. The value is preset and they can only be used at specified merchants.
Network-Branded Gift Cards – These carry the Visa, Mastercard, American Express or Discover logo and can be used anywhere those cards are accepted, including for online shopping and bill payment.
The key factor determining if a gift card can pay a bill is whether the merchant accepts the card’s network like Visa or Mastercard. Network-branded gift cards essentially function as debit cards, with the prepaid valueaccessible for purchases and payments.
As long as there is sufficient balance available, network-branded gift cards offer the flexibility and convenience of paying bills with plastic without the need to provide sensitive bank account information.
Where Are Gift Cards Accepted?
Gift cards can be used to pay a variety of bills, but acceptance depends on the merchant. Here are some common bill categories where network gift cards may be accepted:
- Utilities – Electric, gas, water, garbage collection
- Telecommunications – Cell phone, cable, internet
- Insurance – Auto, health, homeowners
- Government – Property tax, vehicle registration
- Memberships – Gym, warehouse clubs, subscriptions
- Rent – If your landlord or property manager accepts credit cards
When in doubt, contact your billing provider directly to confirm if gift card payment is allowed. Some may charge additional processing fees that debit and credit cards don’t incur.
The one bill you typically can’t pay with a gift card is your credit card statement. Issuers want you to pay off balances with bank account transfers or checks.
Tips for Paying Bills with Gift Cards
If you want to integrate gift cards into your bill payment strategy, keep these tips in mind:
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Check the Balance – Log into your gift card account online or via the issuer’s app to view your available balance before making payments.
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Pay Ahead – Gift cards don’t allow overpayments. Make sure your card has enough funds to cover the entire bill. Consider paying a few days early.
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Save The Receipt – When you pay bills with a gift card, be sure to save the confirmation for tracking and budget planning.
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Avoid Fees – Watch out for bill pay surcharges that some merchants add for gift card use. Consider other options if the fees are excessive.
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** automate where possible** – If you use gift cards regularly for certain bills, check if the provider allows setting up recurring payments.
The Benefits of Paying Bills with Gift Cards
Beyond the convenience of plastic, paying bills with gift cards has a few financial advantages:
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It puts gift card funds already in your possession to good use.
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No need to link sensitive bank account information for payments.
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Allows you to stick to a predetermined gift card budget when paying variable bills.
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Gift cards won’t negatively impact your credit score if a payment is late.
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Provides an easy way for teens and young adults to pay their own bills.
While not universally accepted, opening up gift card use beyond just retail purchases can provide more payment flexibility.
Partner with Your Gift Card Issuer
Reaching out directly to your gift card issuer is the best way to understand where the card is accepted and learn about any special features available for bill pay.
For example, American Express offers an online bill payment platform where registered gift card holders can pay everything from utilities and wireless bills to insurance and federal taxes. Account dashboards make managing and budgeting simple.
Mastercard also enables cardholders to easily pay recurring bills through their online portal or app. Visa provides extensive resources on how and where their gift cards can be used.
Don’t hesitate to call, email or live chat with gift card customer service for any other bill pay FAQs. They can walk through your options.
Give the Gift of Bill Payment Flexibility
While you’ll still need to maintain a bank account for some billing purposes, having a few network-branded gift cards in your wallet can provide convenient bill payment flexibility. Tap into their debit-like functionality wherever they are accepted.
Gift cards present an easy way to allocate a set dollar amount towards bills each month without the risk of overdrafts. They can also limit exposure of your banking information. Plus, who doesn’t mind having an excuse to buy themselves a little gift now and then?
So next time you’re Grab a multi-purpose gift card along with that luxury candle or coffee gift basket. Give yourself the gift of stress-free bill payment.
Convert Vanilla Gift Card into Cash INSTANTLY
FAQ
Can I use a Visa gift card to pay a bill?
You can easily get to your money at any time with the all-purpose Visa Prepaid card. This prepaid card lets you get cash, pay bills, and buy things anywhere Visa Debit cards are accepted, including online and in stores.
Why can’t I pay bills with a gift card?
Most of the time, the card processor decides if a company will accept an electronic payment card for a bill payment. Store gift cards typically can’t be used for bill payment unless with that specific retailer. Beyond that, most prepaid cards will work in the same manner that any regular payment card will.
Can you use a gift card as a payment method?
Yes. A Visa gift card works like a credit card, so it can be used anywhere Visa cards are accepted, even online. However, it will probably need to be registered online or over the phone before it can be used.
How do I convert a gift card to cash?
Gift card kiosks are physical machines often found in grocery stores, shopping malls, or big-box retailers. If you need immediate cash, this might be the right option for you. To use a kiosk, all you have to do is put your gift card in, and the machine will check its balance before giving you cash right away.
Can you use a gift card to pay bills?
Some types of bills can be paid with a gift card as long as it has enough money on it. Credit cards could not be used for this. This is because a generic or prepaid gift card can work like a debit card. The merchant determines the payment methods it will accept.
Can you pay off a credit card with a gift card?
It’s not often that a gift card can be used to pay a credit card bill. Check with your credit card company to see what kinds of payments they accept. You can get generic prepaid gift cards from payment networks like Visa. These cards can be used in a lot of different places. Nevertheless, it’s unlikely you’ll be able to use gift cards to pay off a credit card directly.
Can you pay a bill with a prepaid gift card?
This is because a generic or prepaid gift card can work like a debit card. The merchant determines the payment methods it will accept. So, the only way to know for sure if a prepaid card can be used to pay a bill is to try it or look at the company’s payment terms. What can you use a gift card for?.
How do I add a gift card to my bill?
Go to your Payment Options. Choose an amount to pay (i. e. , pay in full, pay another amount, make a split arrangement) and choose Continue. Choose add/edit payment method. Select Gift card and click Add method. Follow the prompts. When the gift card is added, you can select it as a payment option for your bill.
Can I use a Visa gift card to pay a credit card?
Most likely, you won’t be able to pay for something with a Visa gift card. However, some Visa prepaid gift cards allow funds transfers among other Visa cards. As a general rule, prepaid gift cards from payment networks like Visa have websites on them that let you look at the terms and conditions.
What can you use a gift card for?
The balance on a gift card can be used to pay for many things, even things you’d normally pay for, like bills if it’s a debit card from a bank. Instead of spending the money on groceries or gas, consider putting it in the bank. In some cases, you may even be able to convert your card to cash. Depending on the card and the retailer, these options are available.
