Travelers often overlook routine purchases as a way to accelerate rewards balances. Buying gift cards for future trips or gifts can generate meaningful points or cash back when paired with the right credit cards. The strategy works because many merchants that sell gift cards fall into bonus categories on select cards. ([1])This approach helps frequent flyers and hotel guests reach redemption thresholds sooner without changing spending habits.
Why Gift Card Purchases Matter for Rewards
Gift cards serve as a practical bridge between everyday spending and travel goals. An Airbnb card funds lodging, while an airline or hotel brand card converts directly into future stays or flights. The key lies in selecting cards that award elevated rates at the retailers where those cards are sold. Office supply stores, supermarkets, and warehouse clubs frequently stock popular gift cards. Cards that bonus those locations therefore multiply returns on the same transaction. Over a year, even moderate gift card volume can add thousands of extra points or dollars in cash back.
Cards That Target Specific Retailers
Several no-annual-fee cards focus rewards on merchants that commonly sell gift cards. The Ink Business Cash card awards 5 percent cash back or 5 points per dollar at office supply stores on up to $25,000 in annual spending. That rate applies directly to purchases at chains such as Staples or Office Depot. The Bank of America Customized Cash Rewards card lets users select a bonus category each quarter. Choosing office supplies or another relevant category can deliver 3 percent cash back after the first-year 6 percent promotion ends, subject to quarterly caps. The Costco Anywhere Visa by Citi returns 2 percent on all purchases made inside Costco or on Costco.com, a venue many travelers use for bulk gift card buys.
Flat-Rate Cards for Broad Flexibility
Not every gift card purchase occurs at a bonus merchant. The Citi Double Cash card provides a straightforward 2 percent cash back on every purchase, split between the time of purchase and the time of payment. Rewards post as ThankYou points that can transfer to airline and hotel partners, albeit at a lower ratio than premium Citi cards. This option removes the need to track categories or rotate selections. Travelers who buy gift cards across many retailers value the simplicity and consistent return.
Balancing Annual Fees and Added Perks
The American Express Gold card carries a $325 annual fee yet earns 4 points per dollar at U.S. supermarkets on up to $25,000 per year. Many gift cards are available at grocery stores, so the rate can apply. The card also supplies dining and travel-related statement credits that may offset part of the fee for active users. Cardholders should compare the fee against expected supermarket volume and the value of those credits before applying. No single card suits every traveler; the best choice depends on where gift cards are typically purchased and whether the user values transferable points or simple cash back. A compact comparison highlights the main differences:
| Card | Key Bonus | Annual Fee |
|---|---|---|
| Ink Business Cash | 5% at office supply stores (up to $25k) | $0 |
| Amex Gold | 4x at U.S. supermarkets (up to $25k) | $325 |
| Bank of America Customized Cash | 3% in chosen category (after first year) | $0 |
| Costco Anywhere Visa | 2% at Costco | $0 (membership required) |
| Citi Double Cash | 2% on everything | $0 |
Travelers who plan gift card purchases around these categories can accumulate rewards more efficiently. The right card turns an ordinary errand into measurable progress toward the next flight or hotel stay.
