Can You Use an Amazon Gift Card at Target? An Expert‘s Guide

As a savvy shopper, you always want to get the most value and flexibility out of your gift cards. So if you have an Amazon gift card but love shopping at Target, you might be wondering: can I use an Amazon gift card at Target? Here‘s everything you need to know, straight from a retail industry expert.

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The Short Answer: No, Amazon Gift Cards Are Not Accepted at Target

Unfortunately, you cannot directly use an Amazon gift card to make purchases at Target stores or on Target.com. Amazon gift cards are only redeemable for eligible goods and services on Amazon.com and certain related sites like Audible.com, PrimeMusicVideo.com, and AWS.Amazon.com 1.

This means you can‘t use your Amazon gift card at Target checkouts or enter the gift card number on Target‘s website to apply to your purchase. If you try, you‘ll likely get an error message saying the card is not valid.

Why Most Retailers Restrict Gift Card Usage

It may seem inconvenient that your Amazon gift card can‘t be used at Target, but this is a common policy in the retail world. Here are a few key reasons why businesses limit gift cards to their own brands:

  1. Preventing money laundering: Retailers must follow strict anti-money laundering (AML) regulations set by the U.S. government. Restricting gift cards to only being redeemable at the issuing merchant makes it harder for criminals to anonymously move large sums of money2.

  2. Protecting revenue: Gift cards represent a promise of future revenue for the issuing business. If Amazon allowed its gift cards to be used at Target or other competitors, it would essentially be handing over sales to its rivals.

  3. Encouraging customer loyalty: Limiting gift card redemption to the retailer‘s own ecosystem incentivizes shoppers to spend their money with that specific brand. It‘s a way for stores like Amazon and Target to retain customers and discourage them from taking their business elsewhere.

In fact, closed-loop gift cards (those that can only be used at a single merchant) make up the vast majority of the gift card market. In 2022, closed-loop gift card sales reached $212 billion in the U.S., while open-loop cards (those redeemable anywhere, like Visa gift cards) accounted for only $44 billion3.

The Competitive Dynamics Between Amazon and Target

The inability to use Amazon gift cards at Target is also a reflection of the fierce competition between the two retail giants. While Amazon dominates the ecommerce space, Target has been investing heavily in its online business to try to gain market share.

In 2022, Amazon captured a staggering 40.9% of all U.S. retail ecommerce sales4. Target was the fourth largest ecommerce retailer, but still only accounted for 2.2% of online sales5.

At the same time, Target‘s sprawling network of nearly 2,000 brick-and-mortar stores remains a key competitive advantage6. Roughly 75% of the U.S. population lives within 10 miles of a Target store, allowing the retailer to offer conveniences like in-store pickup and same-day delivery7.

Given this context, it‘s understandable that neither Amazon nor Target wants to make it easier for customers to spend money with their competitor. As Rebekah Kondrat, a partner at retail consultancy Kondrat Retail, explains:

"Amazon and Target are locked in a battle for consumer loyalty and retail market share. They want to keep customers in their own ecosystem as much as possible. Accepting each other‘s gift cards would be like admitting defeat."

So while it may be frustrating that your Amazon gift card can‘t be used at Target, this policy is a strategic move on both retailers‘ part. But that doesn‘t mean you‘re completely out of options.

How to Check if a Target Item Is Also Sold on Amazon

Before giving up on your Amazon gift card, it‘s worth checking if the Target product you want is also available on Amazon.com. The two retailers actually overlap in many areas of their product catalog, especially when it comes to popular national brands.

For example, let‘s say you have a $50 Amazon gift card and you‘re hoping to use it to buy a Keurig K-Mini Coffee Maker from your local Target store. A quick search on Amazon.com reveals that the exact same model is also sold there, with the option to apply your gift card balance at checkout.

By purchasing the coffee maker on Amazon instead of Target, you could make use of your gift card without losing out on the product you wanted. And thanks to Amazon‘s extensive fulfillment network, there‘s a good chance you could still get the item delivered quickly.

Of course, this approach won‘t work for every Target item. The retailer does carry some exclusive brands and products that Amazon doesn‘t have access to. But it‘s always worth looking up an item on Amazon before writing off your gift card.

Other Ways to Convert Your Amazon Gift Card for Use at Target

If you can‘t find the Target item on Amazon or you simply prefer the in-store shopping experience, you still have a few options for converting your Amazon gift card into Target-friendly funds:

  1. Sell your Amazon gift card for cash: Websites like Raise and CardCash allow you to sell unwanted gift cards to other consumers. While you won‘t get the full face value of the card, it‘s a simple way to turn your Amazon credit into cash that can be spent anywhere (including Target).

  2. Trade your Amazon gift card for a Target one: Some gift card exchange sites also facilitate direct trades between shoppers. If you find someone who has a Target gift card and wants an Amazon one, you could swap with them at an agreed-upon exchange rate.

  3. Use your Amazon gift card to buy a Visa gift card: Many people don‘t realize that Amazon.com actually sells gift cards for other retailers and prepaid debit cards. You could use your Amazon gift card balance to purchase a Visa gift card in the same amount, which can then be used at Target or anywhere else that accepts Visa.

  4. Buy a discounted Target gift card on Amazon: Occasionally, Amazon will sell Target gift cards at a slight discount to face value. For example, you might be able to snag a $100 Target gift card for $95. If you use your Amazon gift card balance to buy the discounted Target card, you‘ll effectively be getting bonus money to spend at Target.

Just be aware that these methods may come with some downsides. Gift card resale sites typically charge a commission fee ranging from 10-15% of the card‘s value8. And when buying other gift cards on Amazon, you‘ll likely pay sales tax on the purchase.

Target Circle and Target RedCard: Better Options Than Gift Cards

If you frequently shop at Target, signing up for the retailer‘s loyalty program and store credit card can unlock much greater savings than simply using a gift card.

Target Circle is a free loyalty program that allows you to earn 1% back on most Target purchases, which can be redeemed on future shopping trips9. As a Target Circle member, you‘ll also gain access to exclusive deals, birthday rewards, and personalized coupons.

For even more benefits, frequent Target shoppers should consider signing up for a Target RedCard. Available as both a debit and credit card, the RedCard offers an impressive 5% discount on most Target purchases, including clearance items and in-store Starbucks cafes10.

Let‘s say you‘re planning a big grocery run at Target with a budget of $200. If you use a RedCard to pay, you‘ll automatically save $10 thanks to the 5% discount. That‘s a much better value than trying to apply a $10 Amazon gift card to your Target purchase.

Don‘t Forget About Amazon‘s Physical Retail Presence

While Target has the upper hand when it comes to brick-and-mortar locations, Amazon has been quietly expanding its own physical retail footprint. The ecommerce giant now operates several chains of physical stores, including:

  • Amazon Fresh: A grocery store chain with 44 locations across 8 states11
  • Amazon Go: A cashier-less convenience store with 29 locations in 4 cities12
  • Amazon Books: A chain of bookstores with 24 locations nationwide13
  • Amazon 4-Star: A curated gift store with 33 locations in 17 states14

These stores offer a more traditional retail experience and allow customers to interact with Amazon products in person. And of course, your Amazon gift cards can be used to pay for purchases at any of the physical Amazon stores.

So if you have an Amazon gift card and don‘t mind venturing beyond Target, consider checking out one of Amazon‘s physical retail concepts. You may find the same product you were planning to buy from Target.

Other Retailers That Accept Amazon Gift Cards

Although Target won‘t let you redeem Amazon gift cards, there are a handful of other retailers and restaurants that will. Some notable examples include:

  • Whole Foods Market (owned by Amazon)
  • Kohl‘s
  • Gamestop
  • Bed Bath & Beyond
  • Old Navy
  • Gap
  • Banana Republic
  • Dress Barn
  • TGI Fridays
  • Chili‘s
  • P.F. Chang‘s

Keep in mind that these merchants don‘t have a direct agreement with Amazon. Instead, they use a third-party gift card processor that converts the Amazon gift card into a digital credit with the retailer.

As a result, there may be some limitations on which Amazon gift cards are accepted and how much of the balance can be redeemed at a time. For example, Kohl‘s only accepts Amazon gift cards with a $5 to $100 value, and you can only redeem up to $100 per transaction15.

Still, these partnerships provide additional flexibility for shoppers who receive an Amazon gift card but would prefer to use the funds elsewhere. If you have an Amazon gift card you‘re struggling to use, it‘s worth checking if any retailers in your area accept them.

Key Takeaways for Shoppers with Amazon Gift Cards

To recap, here are the most important things to know if you have an Amazon gift card but want to shop at Target:

  • Amazon gift cards cannot be used directly at Target stores or on Target.com. They are only redeemable for purchases made on Amazon‘s platform.
  • This policy is common among retailers and is meant to prevent fraud, protect revenue, and encourage customer loyalty.
  • Before giving up on your Amazon gift card, check if the Target item you want is also available on Amazon. The two retailers have significant overlap in their product catalogs.
  • If you can‘t find the Target product on Amazon, you can try selling your Amazon gift card for cash, trading it for a Target gift card, or using it to purchase a Visa gift card or discounted Target gift card on Amazon.
  • Frequent Target shoppers will get more value from enrolling in Target Circle and using a Target RedCard than trying to apply outside gift cards.
  • Amazon operates its own physical stores where you can redeem Amazon gift cards, including Amazon Fresh, Amazon Go, and Amazon Books.
  • A limited number of other retailers and restaurants have started accepting Amazon gift cards through third-party processors, though there may be restrictions on which cards are eligible.

Navigating the world of gift cards can be tricky, especially when you‘re dealing with two retail giants like Amazon and Target. But armed with this knowledge, you can make an informed decision about how to get the most value out of your Amazon gift card.