Can You Use An Amazon Gift Card To Pay Your Bill? A Guide to Using Gift Cards for Bill Payments

A lot of people in the US like to give Amazon gift cards as gifts. Because they can be used in many ways and are easy to put together, they make great gifts for many events. But can you pay your bills with an Amazon gift card? This guide will tell you everything you need to know about that.

Overview of Amazon Gift Cards

Amazon gift cards, also known as Amazon.com Gift Cards, are prepaid store credit cards that can be redeemed on Amazon.com to purchase eligible items. They come in both physical and digital formats.

Physical Amazon gift cards are plastic cards similar to debit or credit cards. You can purchase them at many retail stores across the country or order them online through Amazon Digital Amazon gift cards are delivered via email and can be printed or downloaded to a phone

Once purchased, Amazon gift cards do not expire. The gift card balance remains in the recipient’s account until used. Gift cards can be redeemed to purchase millions of eligible items across all Amazon websites including Amazon.com Amazon Video, Amazon Music, Audible, Kindle books, digital subscriptions, grocery delivery, and more.

According to Amazon, gift cards are the most gifted and most redeemed item across all of its online stores In 2021 alone, more than 1 billion Amazon gift cards were purchased.

Can You Use an Amazon Gift Card to Pay Bills?

The short answer is yes, you can use an Amazon gift card to pay some bills, but not others. Amazon gift cards can be used for:

• Purchasing eligible products on Amazon.com, including household essentials like toilet paper, cleaning supplies, pet food, over-the-counter medicines, and more.

• Adding money to an Amazon Cash account balance, which can then be used to pay bills through Amazon Pay.

• Reloading an Amazon Gift Card balance.

• Buying digital gift cards from Amazon.com for other brands, which can then be used to pay those companies’ bills.

However, there are certain bills that cannot be paid with an Amazon gift card:

• Rent, mortgage, utilities, or any other bills that require an electronic bank transfer or mailed check. Amazon gift cards can only be used to purchase items on Amazon.

• Amazon Prime membership fees or audiobook subscription charges. These require a credit/debit card on file.

• Amazon store card or Amazon credit card bill payments. These must be paid directly through each card’s online account system.

How to Use Amazon Gift Cards for Bill Payments

If you have an Amazon gift card balance and want to use it to pay bills, you have several options:

1. Purchase Household Essentials on Amazon

Use your gift card to stock up on household items and everyday essentials on Amazon.com. This stretches your regular income further by allowing you to allocate those funds towards paying other bills. Anything sold directly by Amazon, whether a physical or digital product, is eligible for gift card redemption.

2. Add Funds to Amazon Cash

Amazon Cash is an electronic cash-like system connected to your Amazon account. It allows you to add cash to your account balance, which can then be used to shop on Amazon or pay bills through Amazon Pay.

To add gift card funds to Amazon Cash:

• Go to “Reload Your Balance” under Amazon Cash in Your Account.

• Select “Reload with a Gift Card” and enter your Amazon gift card number and PIN.

• The gift card balance will be transferred to your Amazon Cash account.

You can then use your Amazon Cash to pay bills through Amazon Pay, such as your utility bills, credit card bills, insurance bills, and more. Over 75,000 companies accept Amazon Pay.

3. Purchase Third-Party Digital Gift Cards

Thousands of brand-name digital gift cards are available through Amazon.com. These include retail, restaurant, and entertainment gift cards. Digital gift cards are emailed to recipients.

Use your Amazon gift card to purchase digital gift cards for brands you need to pay – like a Starbucks gift card for your morning coffee or an AMC gift card for movie night. This converts your Amazon credit into credit you can use elsewhere.

Make sure to verify the gift card terms, as some may expire or have other restrictions. Also, carefully review any gift card activation fees.

4. Resell or Exchange Unused Gift Cards

If you received an Amazon gift card that you don’t need, you can exchange it for cash or a more useful gift card by reselling or exchanging it. Popular reselling options include:

• Gift card exchange websites such as CardCash and Raise

• P2P sites like Craigslist, Facebook Marketplace, and OfferUp

• In-person at select pawn shops, jewelers, and gift card kiosks

Exchanging an unwanted gift card for cash allows you to then use those funds to pay important bills. Be sure to compare sites to get the best resale value. Also check fees, which vary by site.

5. Use Gift Card Credit to Pay Down Account Balances

If you have a positive Amazon gift card balance, you can use it to pay down balances on other accounts linked to your Amazon profile.

For example, apply gift card credit towards an Amazon Prime membership renewal, Audible subscription, Kindle Unlimited monthly fee, or Amazon Music charge. This will lower the amount debited from your bank account or charged to your credit card when those bills come due.

Just make sure to use the gift card credit first, before the automatic billing date hits. And note this only works for accounts billed directly by Amazon, not by third parties.

Limitations of Using Amazon Gift Cards for Bills

While Amazon gift cards offer some bill payment flexibility, there are limitations to be aware of:

• No cash redemption – Amazon gift cards can only be used to purchase eligible Amazon products or services. There is no way to withdraw the cash value.

• No partial redemptions – The entire gift card value must be used on a single transaction. Remaining balances cannot be saved for later.

• No returns for cash – Items purchased with a gift card can only be returned or exchanged for Amazon credit, not cash.

• No card payments – Gift cards cannot pay charges incurred from an Amazon Prime, Amazon Store Card, or Amazon credit card account.

• No third-party bills – Bills for rent, utilities, loans, insurance, etc. can only be paid by gifting cards for those specific merchants.

• Risk of unused funds – Dormant gift card balances can expire or be subject to fees. Use gift funds timely to get the full value.

While not ideal for direct bill pay, Amazon gift cards still provide opportunities to offset other expenses. Understanding both the possibilities and limitations is key to making the most of gifted Amazon credit.

Tips for Maximizing Amazon Gift Cards

Follow these tips to get the most benefit from any Amazon gift cards you receive:

• Check the balance – Log into your Amazon account online or use the mobile app to check your total gift card balance. New gift cards may take 1-2 days to appear.

• Use for necessities – Stock up on household essentials like cleaning supplies, shelves stable foods, pet items, and health products.

• Combine small balances – Consolidate multiple low-balance gift cards into one by reloading one card with the others.

• Redeem promptly – Use gift card funds ASAP to reduce the risk of losing unused balances over time.

• Avoid impulse purchases – Stick to a list and don’t overspend just because you have a gift card balance.

• Sell or exchange unused cards – Trade unwanted gift cards for cash or more useful cards.

• Pay Amazon bills first – If you have Prime or other Amazon subscriptions, pay those charges with gift credit before your credit card is billed.

Using Amazon gift cards strategically can help reduce regular household expenses and allow money saved to go towards paying other important bills.

The Bottom Line

While Amazon gift cards can’t directly pay bills for utilities, rent, or other non-Amazon expenses, they can be used to purchase household essentials on Amazon, add funds to Amazon Cash for bill pay, buy third-party gift cards, or pay down existing Amazon account balances. Understanding both the potential uses and limitations of Amazon gift cards lets consumers maximize their value and integrate them into an effective bill payment strategy. With some creativity, gifted Amazon credit can be a helpful financial tool.