Most credit cards don't specifically include gift cards in their definition of a "cash advance transaction". But "stored value cards" are included in the definitions provided by some banks, including ANZ, Westpac and Bankwest.
As gift cards are a type of stored value card, you should double-check before you purchase one with your card.
If you're not sure if buying a gift card will be treated as a cash advance and want to find out, another option is to buy a low-value gift card with your credit card then repay it straight away. If it is treated as a cash advance you'll know right away but still avoid the interest charge.
But if your card has a cash advance fee you'll still get charged that.
Buying gift cards with your debit card or cash won't attract any cash advance fees or interest rates. And if there are items you want to buy with your credit card, you could buy them separately before paying for your gift cards.
If you're a member of a frequent flyer or rewards program, you could use points to redeem gift cards for people instead of paying for them. Just be aware that this usually isn't the most valuable way to use points.
The difference between a purchase and a cash advance transaction can be influenced by the business where you use your credit card.
For example, if you bought a gift card from a newsagent that was set up as a "merchant that sells lottery tickets" as its main form of business, there is a greater chance of the transaction being considered a cash advance than if you bought a gift card from a supermarket.
| Response | WA | VIC | SA | QLD | NSW |
|---|---|---|---|---|---|
| None of the above | 45.76% | 40.61% | 45.33% | 43.29% | 38.18% |
| Rewards programs | 34.75% | 36.86% | 36% | 37.66% | 38.18% |
| Interest-free days | 20.34% | 25.6% | 26.67% | 21.21% | 27.64% |
| Balance transfers | 19.49% | 18.77% | 13.33% | 22.08% | 20.51% |
| Cash advance | 16.1% | 12.97% | 17.33% | 16.02% | 21.65% |
| Minimum payment | 14.41% | 12.29% | 13.33% | 9.52% | 15.38% |
| Purchase rate | 14.41% | 14.33% | 10.67% | 17.32% | 20.51% |
| Statement period | 14.41% | 10.92% | 12% | 11.69% | 15.1% |
| Other | 0.85% | 0.34% | 0.43% | 0.28% |
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