Guide: How to earn reward points with gift cards and credit cards?

Why are gift cards important?

There are dozens of gift cards for many merchants, and members of the Facebook group are big fans of them!

Gift cards are important in several situations:

• Unlocking welcome bonuses
• Earn many more reward points (such as 5 points per dollar at Walmart)
• Using an American Express card almost anywhere

We really like this strategy because it allows you to accumulate more points! First, check which category you earn the most points in with your credit card.

For example, the TD^® Aeroplan^® Visa Infinite* Card gives 6 TD Rewards points / $1 for grocery purchases and 2 TD Rewards points / $1 for other purchases. A $100 purchase at Simons will :

After repeatedly applying this clever strategy throughout the year, the amount of points will grow much faster. So travel paid for with points or big cash rebates arrive at full speed!

Unlock welcome bonuses with gift cards

The points hunter is generally someone who keeps a close eye on their budget and is able to forecast their spending over the coming months, mainly those made on their credit cards. This is all part of their strategy.

In this specific case, gift cards are valuable allies for quickly unlocking credit card welcome bonuses.

Here, for example, is a typical budget for one month:

Thus, by planning your expenses for the next 2-3 months – and having the cash flow to « advance funds » via gift cards – it is possible to more easily unlock credit card bonuses.

It can also be handy a few weeks before the deadline to unlock the bonus if you see that the 3 months won’t be enough!

Earn more reward points with gift cards at Christmas

In addition to obtaining welcome bonuses, it is beneficial to get into the habit of using the right credit card in the right place to accumulate more reward points or cash back!

For example, rather than directly using your American Express Cobalt^® Card at an SAQ branch (1 point per dollar), you could purchase SAQ gift cards at your Metro / Super C grocery store or your Couche-Tard convenience store (5 points per dollar)!

Thus, your purchase at the SAQ with a gift card would have earned you 5 points per dollar instead of 1!

This applies to a great many merchants: in fact, all those for which you can find a gift card at your grocery store, gas station, convenience store, or pharmacy:

• Walmart
• Netflix
• Shell
• Home Depot
• Hudson’s Bay
• Canadian Tire
• and much more!

Below you’ll find out which credit card to use where to get more reward points!

Use an American Express card almost anywhere with gift cards

American Express cards are increasingly accepted, especially by small businesses.

Some stores continue not to accept them, such as large grocery chains (Maxi, some IGAs, etc.). At this point, something exists: Rakuten.

Rakuten allows you to get cash back for your online purchases. But the site also contains a section dedicated to gift cards (not accessible from the mobile application)!

If you are not a member of Rakuten.ca, sign up via our referral link to get a $5 credit after a $25 purchase!

Many merchants are accessible via gift cards offered on Rakuten.

For example, since Maxi or Provigo do not accept American Express, you could purchase a gift card for these grocery stores on Rakuten.ca. While earning a cash back!

You can then use your American Express card (via PayPal) to purchase a Maxi gift card, for example.

That way, you use your American Express card indirectly at Maxi 😉

The list of merchants and grocery stores offering gift cards in Canada and Quebec

There are different categories of merchants in Canada offering gift cards accessible with credit cards:

• Grocery stores (Metro, Super C, IGA, etc.)
• Gas stations (Esso, Shell, Petro-Canada, etc.)
• Pharmacies (Shoppers Drug Mart, Jean Coutu, Uniprix, etc.)
• Convenience stores (Couche-Tard)
• Home improvement centers (Home Dépôt, Rona, Home Hardware)
• Office supply stores (Staples)

And for each of these categories, there are different credit cards to earn points! We will give you our best credit card choices for each category.

Gift cards available at grocery stores

To purchase gift cards at grocery stores with a credit card, one would turn to one of these 5 credit cards:

The first two American Express card can be used at most Metro, Super C, IGA and Safeway grocery stores.

They will offer 5 points per dollar, which is a return of approximately 5% on all gift card purchases at grocery stores.

You can read our detailed comparison on these two credit cards here.

If you do your grocery shopping elsewhere, it would then be appropriate to turn to the National Bank World Elite Mastercard which will offer you 5 points per dollar at grocery stores for gift card purchases.

Or to the CIBC Dividend^® Visa Infinite* Card or the Scotia Momentum^® Visa Infinite+* Card which will offer you 4% on all gift card purchases at grocery stores.

Finally, you’ll earn 5 points per dollar with the BMO eclipse Visa Infinite* Card. This corresponds to a return of around 3.5% on travel purchases made with your points.

Gift cards available at gas stations

To purchase gift cards at gas stations with a credit card, one would turn to one of these 6 credit cards:

All gas stations accept American Express credit cards. Here, the choice of a card will vary depending on the type of rewards you prefer to have.

If you prefer to earn Marriott Bonvoy points by purchasing your gift cards at gas stations, we recommend using:

• the Marriott Bonvoy^® Business American Express^®* Card (3 points per dollar)

If you prefer to earn travel points by purchasing your gift cards at gas stations, we recommend using either:

• the Scotiabank Gold American Express^® Card: 3 points per dollar
• American Express Cobalt^MD Card: 2 points per dollar

Finally, if you prefer to earn cash back by purchasing your gift cards at gas stations, we recommend using either:

• CIBC Dividend^® Visa Infinite* Card: 4% per dollar on gas station purchases
• the SimplyCash^® Preferred Card from American Express: 4% per dollar spent at gas stations

Gift cards available at pharmacies

To purchase gift cards at pharmacies with a credit card, one would turn to one of these 3 credit cards:

Most drugstores accept American Express credit cards.

If you prefer to earn Membership Rewards points by purchasing your gift cards at pharmacies, we recommend using the American Express^® Gold Rewards Card: 2 points per dollar spent.

If you prefer to earn cash back by purchasing your gift cards at pharmacies, we recommend using the Tangerine Money-Back Credit Card or the Tangerine World Mastercard.

You can choose the « Drugstores » category among the categories offering 2% cash back.

Gift cards available at convenience stores

To purchase gift cards at convenience stores such as Couche-Tard, Macs, Circle K, 7-Eleven with a credit card, one would turn to only one credit card:

The American Express Cobalt^® Card is recognized as one of the best credit cards in Canada.

By purchasing your gift cards at convenience stores with this credit card, you will earn 5 points per dollar:

It is possible to purchase Walmart gift cards at Couche-Tard convenience stores! A sneaky way to get 5 points per dollar for Walmart with the American Express Cobalt^MD Card.

Including for medications at Walmart pharmacies!

Gift cards available at home improvement centers

To purchase gift cards at home improvement centers with a credit card, one would turn to two credit cards:

You can earn cash back by purchasing your gift cards at home improvement centers using the Tangerine Money-Back Credit Card or the Tangerine World Mastercard.

You can choose the « Renovations » category among the categories offering 2% cash back.

Gift cards available at office supply stores

To purchase gift cards at office supply stores with a credit card, one would turn to two credit cards:

You can earn travel points by purchasing your gift cards at office supply stores using:

• BMO Rewards^® World Elite^®* Business Mastercard^®*: 4 points per dollar (or the equivalent of 2.68% in travel points)

Conclusion

You now know which credit card to use in the right place to purchase gift cards. Now, don’t forget your gift cards at home when you go shopping!

Frequently Asked Questions about Gift Cards

Which credit card to use to earn the most points?

Point accumulation depends as much on the program as on the credit card used. To compare cards that maximize accumulation based on your spending (groceries, restaurants, travel), use our credit card comparator. You can also consult our ranking of the best credit cards of the month, updated monthly by the Milesopedia team. The card that amplifies this gift card strategy: the American Express Cobalt Card which earns 5 points per dollar at grocery stores where most gift cards are purchased.

What are gift cards?

Gift cards are prepaid instruments that allow the holder to purchase goods or services up to the monetary value printed or loaded on the card. They are often offered as gifts for various occasions.

How can one check the balance on a gift card?

On the back of your gift card, go to the indicated internet address. On this site, you will find a section that looks like « Check my gift card balance ». Enter your card information.

Sometimes, there may also be an option to call customer service to obtain the balance. Or go directly to the store and find out the amount at the checkout.

How can gift cards help me earn points with my credit card?

When you purchase gift cards using your credit card, it generally counts as a regular transaction. Therefore, if your credit card offers points or rewards for each purchase, you will accumulate these benefits by buying gift cards.

Where is it best to buy gift cards to maximize my credit card points?

To maximize your points, it would be wise to purchase gift cards at merchants where your credit card offers bonus points or higher reward rates. Such as a grocery store, gas station, convenience store or drugstore.

Where can one buy gift cards such as Amazon, St-Hubert, Sports Expert, Apple, Home Depot, Canadian Tire, etc.?

You can purchase gift cards at many merchants such as a grocery store, gas station, convenience store, at Dollarama or a pharmacy.

What types of gift cards are available?

There are hundreds of gift cards for many merchants such as Amazon, Walmart, Ikea, Shell, Esso, SAQ, etc.

How to obtain gift cards?

To obtain gift cards, you can visit many major retailers or supermarkets that offer them for sale. These cards are often available at checkouts or in specific displays. In addition, many websites also offer the option to purchase gift cards online, which you will receive either physically by mail or electronically by email.

Where can one buy a gift card online?

Several online sites exist for purchasing gift cards. This is the case of Rakuten, for example.

Where can one buy a Walmart gift card?

It is possible to purchase a Walmart gift card at a Couche-Tard/Circle K convenience store. In this case, it is preferable to use the American Express Cobalt^® Card to earn 5 points per dollar.

Where can one buy an IKEA gift card?

It is possible to purchase an IKEA gift card at a Couche-Tard/Circle K convenience store and also at IGA. In this case, it’s best to use the American Express Cobalt^MD Card to earn 5 points per dollar.

How to check a gift card balance?

To check a gift card balance, the most common method is to visit the card issuer’s website. Most of these sites have a dedicated section where you can enter the card number and, if necessary, an associated PIN code. By providing this information, the site will usually show you the remaining balance on the card. If you cannot access the website or prefer a different method, you can also often check the balance by calling a customer service number indicated on the card or by inquiring directly in-store.

Are there risks associated with purchasing gift cards with a credit card?

Like any transaction, it is essential to ensure that you purchase gift cards from reputable providers. There is also a risk of overspending, as it can be tempting to buy many gift cards to earn points, but this could lead to a high balance on your credit card.

Do gift cards expire?

In Canada, most gift cards do not have an expiration date. However, it is always good to check the specific terms of the gift card at the time of purchase.

How to write « carte cadeau » in the plural?

« Carte-cadeau » is written as « Cartes-cadeaux » in the plural.