Amazon Gift Cards: The Ultimate Guide for Savvy Shoppers (2023)

Amazon gift cards are widely considered one of the most popular and versatile gift options today. In fact, a recent survey found that gift cards have been the most requested holiday gift for 16 years in a row, with Amazon cards topping many wish lists.

As a retail industry expert and self-proclaimed "picky shopper," I‘ve spent countless hours researching and using Amazon gift cards. In this in-depth guide, I‘ll share everything you need to know, including:

  • How Amazon gift cards work
  • Advantages of Amazon gift cards
  • Step-by-step instructions for purchasing and redeeming
  • Tips for getting the most value as a gift giver and recipient
  • Common questions and concerns (like potential fees and restrictions)
  • How Amazon gift cards stack up against the competition

Whether you‘re considering giving Amazon gift cards to others or wondering how to use one you received, this post will walk you through it all. Let‘s dive in!

Amazon Gift Cards 101: The Basics

First, let‘s define what Amazon gift cards are and go over some general information.

What is an Amazon gift card?

An Amazon gift card is a prepaid stored-value card that can be used as payment on Amazon.com and certain affiliated properties. Gift cards can be loaded with a set amount of money, which the recipient can then apply to their Amazon account balance and use for future purchases.

Types of Amazon Gift Cards

Amazon offers two main types of gift cards:

  1. eGift Cards – These are digital gift cards delivered to the recipient via email. eGift cards can be personalized with a message and even an image or video. The email contains a claim code that the recipient enters on Amazon to add the value to their balance.

  2. Physical Gift Cards – These are traditional plastic gift cards mailed to the recipient or purchased in-store at major retailers like grocery stores and drug stores. They come in various designs for different occasions. The back of the card has a scratch-off panel concealing the claim code.

Amazon previously offered printable gift cards but these have been discontinued in favor of eGift cards.

Gift Card Denominations

Amazon gift cards are available in the following denominations:

  • $1-$500 for eGift cards
  • $10-$500 for plastic gift cards bought on Amazon
  • Fixed denominations of $15, $25, $50, and $100 for most plastic gift cards bought in-store (selection may vary by retailer)

You can also purchase custom amount eGift cards for odd values like $7.42, which could be used to pay an exact balance. However, physical gift cards must be in set increments divisible by $5.

Advantages of Amazon Gift Cards

So why choose Amazon gift cards over cash or other gift options? Here are a few key benefits:

  1. Wide selection – Amazon sells over 12 million products spanning nearly every category imaginable. Gift card recipients can browse this massive marketplace to find items uniquely suited to their needs and interests.

  2. Flexibility – Amazon gift cards never expire and can be used across multiple orders until the balance is depleted. The recipient has complete control over when and how to spend the funds.

  3. Convenience – Both gift givers and recipients appreciate the ease of digital delivery. eGift cards can be scheduled in advance and arrive in the recipient‘s inbox within minutes.

  4. Reliability – Amazon is the world‘s largest online retailer with a strong reputation for service. Gift cards are securely delivered and can be redeemed without issue. If a card is lost or stolen, Amazon‘s customer support can often help.

  5. No fees – Unlike some other prepaid cards and vouchers, Amazon gift cards do not charge any activation fees, maintenance fees, or dormancy fees. The dollar amount you paid is exactly what the recipient receives to spend. (We‘ll discuss this more later.)

  6. Potential deals – While not always available, Amazon occasionally runs promotions that offer bonus credit for purchasing gift cards. For example, they might give you a free $10 promotional balance for loading $100 onto a gift card around the holidays.

Of course, gift cards also have some potential disadvantages like limited flexibility if the recipient doesn‘t shop on Amazon. They can also feel a bit impersonal compared to a hand-selected gift. But overall, Amazon gift cards offer excellent value and usefulness for many gifting occasions.

How to Purchase Amazon Gift Cards

Ready to buy an Amazon gift card for someone? Here‘s how to do it online:

  1. Visit Amazon.com and make sure you‘re signed into the account you want to use for purchasing the gift card.

  2. Hover over the "Accounts & Lists" menu and select "Gift Cards."

  3. On the next page, click the "Buy gift cards" button.

  4. Select whether you‘d like to purchase an eGift card or physical gift card.

  5. For eGift cards, choose the card design and enter the following information:

    • Recipient‘s email address
    • Gift card amount ($1-$500)
    • Delivery date (now or in the future)
    • Optional message and image/video
  6. For physical gift cards, choose the card design and packaging, then select the value. Enter the quantity and add to cart.

  7. Proceed through checkout to complete the transaction. You can pay using your existing Amazon balance, credit card, or another approved payment method.

Note that if you‘re buying an eGift card, double check the "Recipient Email" field before placing the order. Amazon will deliver the gift card code to this email address and cannot cancel the order once it‘s submitted.

Physical gift cards take 1-3 days to produce plus additional shipping time. If you need it faster, choose an eGift card or purchase from a local retailer instead.

How to Redeem an Amazon Gift Card

If you‘ve received an Amazon gift card, follow these steps to apply the balance to your account:

  1. Visit Amazon.com and log into your account.

  2. Hover over "Accounts & Lists" and click "Your Account."

  3. Scroll down to "Gift cards" and click the "Redeem a gift card" button.

  4. Enter the claim code (sometimes called a redemption code) from the gift card in the field provided:

    • For physical cards, gently scratch off the coating on the back to reveal the code.
    • For eGift cards, copy the claim code from the email you received.
  5. Click "Apply to your balance." The funds will be added to your gift card balance immediately.

Once the gift card balance is in your account, you can apply it to eligible purchases during checkout. If your order total exceeds the gift card balance, you‘ll be prompted to select an additional payment method for the remaining amount. You can also split the cost between multiple gift cards.

To check your current gift card balance at any time, visit the "Gift Cards" section in your account. The balance never expires and you can keep using it for multiple purchases until it runs out.

Do Amazon Gift Cards Have Fees?

A common concern is whether Amazon gift cards have any hidden fees that reduce the balance. The short answer is no.

Amazon does not charge any fees for purchasing, sending, or redeeming gift cards. The amount you pay is the amount the recipient can spend on the site. There are also no fees for checking the balance, replacing a lost card (if eligible), or maintaining the balance indefinitely.

Beware that some resellers or auction sites may charge a commission for buying or selling Amazon gift cards secondhand. But when purchasing directly from Amazon or an authorized retailer, you will not be charged anything beyond the face value.

Restrictions and Limitations

While Amazon gift cards are quite versatile, there are a few restrictions to be aware of:

  • Not redeemable for cash – Per Amazon‘s terms, "Gift Cards may not be redeemed for cash unless required by law." You can‘t convert the balance back into money.
  • Non-transferable – Once a gift card is redeemed on an Amazon account, the balance cannot be transferred to another account.
  • No replacements – "Neither your gift card balance nor your gift cards may be transferred to another account or resold." If the card is lost or stolen before redemption, Amazon will not reimburse you.
  • Purchase restrictions – Gift cards cannot be used to buy other gift cards. Some items sold by third-party sellers or subscriptions may not be eligible for gift card payments.
  • Geographic limitations – Gift cards purchased on Amazon.com can only be used on the US site. You can‘t redeem a balance on international Amazon sites.

Always check the full terms and conditions for Amazon gift cards before purchasing, as policies may change periodically.

Using Amazon Gift Cards Strategically

To wrap up, here are some lesser-known tips and tricks for getting the most out of Amazon gift cards:

  1. Regift strategically – Have a gift card you don‘t want? Consider regifting to someone else who will appreciate it. Since Amazon sells such a wide variety of items, most people can find something they like.

  2. Stockpile for sales – If you receive multiple Amazon gift cards, consider saving the balance for major upcoming sales like Prime Day, Black Friday, or Cyber Monday to maximize the value.

  3. Use for groceries – Don‘t forget that you can buy household essentials and groceries on Amazon too, especially if you live in an area with Amazon Fresh delivery.

  4. Treat yo‘ self – While it‘s smart to spend gift card balances wisely, remember it‘s a gift! Don‘t be afraid to splurge on something you otherwise wouldn‘t buy for yourself as a special treat.

  5. Track and organize – If you have multiple gift cards, keep track of the balances in a spreadsheet or money management app. Aim to use small remaining balances strategically to zero them out.

Amazon Gift Cards vs. Other Options

Finally, how do Amazon gift cards compare to other popular choices? Here‘s my take:

  • Visa/Mastercard gift cards – These all-purpose cards can be used at more places but often charge activation fees of $3-$6. They also usually expire after 12 months of inactivity. Amazon gift cards have no fees and no expiration.

  • Store-specific gift cards – Cards for stores like Walmart or Target are also fairly flexible. However, they may not have as wide a selection as Amazon and the balance can only be used at that specific chain.

  • "Experience" gifts – Some argue that gifts like concert tickets or spa certificates create memories, which can be more meaningful than a gift card. However, you run the risk of choosing an experience the recipient doesn‘t actually want. At least with an Amazon card, they can select something they truly desire.

  • Cash – When in doubt, cash is king in terms of versatility. However, some people consider it a bit of a cop-out and may find a gift card more thoughtful. Cash can also be easily misspent, while gift cards encourage the recipient to select something special just for them.

Ultimately, the "best" gift card depends on your recipient‘s specific needs, interests, and preferences. But Amazon gift cards are certainly one of the most flexible, convenient, and well-rounded options that will delight most people on your gift list.