Using Amazon Gift Cards to Pay Bills: What You Can and Can’t Do

Amazon gift cards are a popular gift choice for all occasions. The prepaid cards can be used to shop for millions of eligible items across Amazon’s online stores. But can you use Amazon gift cards to pay bills and other expenses outside of Amazon purchases? There are some creative ways to leverage gift card balances for bill payment but also limitations to be aware of.

Overview of Amazon Gift Cards

First a quick overview of how Amazon gift cards work. These prepaid store credit cards come in both physical and digital formats. Physical gift cards function like plastic credit or debit cards while digital cards are delivered by email.

Once purchased, Amazon gift cards do not expire. The balance remains in the recipient’s account until used to purchase eligible products on Amazon websites including Amazon.com, Amazon Video, Amazon Music, Audible books, Kindle books, Prime Video subscriptions, grocery delivery, and more.

According to Amazon, gift cards are the most popular gifted and redeemed item across its platforms. In 2021 alone, over 1 billion were purchased.

Using Gift Cards to Pay Your Amazon Bills

When it comes to paying bills, the first thing to know is that Amazon gift cards cannot be used to pay charges from an Amazon credit card or store card. Those bill payments must be made directly through each card’s online account system.

However, gift cards can pay other bills within your Amazon profile, including:

• Amazon Prime membership renewal fees
• Audible audiobook subscription charges
• Kindle Unlimited monthly fees
• Amazon Music subscription costs

To do this, simply apply your gift card balance towards the bill before the automatic charge date. The gift card credit will reduce the amount charged to your bank account or credit card for that bill.

So while Amazon gift cards can’t directly pay an Amazon credit card bill, you can use them to pay for other Amazon services first, thereby allocating cash towards the card payment.

Using Gift Cards to Shop for Bill Payment Essentials

While you can’t pay a credit card, mortgage or utility bill directly with an Amazon gift card, you can use gift card balances to shop for household essentials on Amazon that would normally come out of your bank account.

Stock up on regular purchases like toilet paper, cleaning supplies, shelf-stable foods, pet items, over-the-counter health products, and other daily essentials. This stretches your income further each month, allowing more cash to go towards high-priority bills.

Anything sold directly by Amazon, whether a physical product or digital service, is eligible for gift card redemption at checkout. So utilize your balances to cover all your Amazon shopping basics.

Adding Gift Cards to Amazon Cash

Another option is transferring your gift card balance to Amazon Cash, which is a linked electronic account that can be used to shop Amazon or pay bills through Amazon Pay.

Here’s how to add gift card funds to Amazon Cash:

• Go to “Reload Your Balance” in Your Amazon Account.
• Choose “Reload with a Gift Card” and enter your gift card number.
• The balance will transfer to your Amazon Cash account.

You can then use the Amazon Cash balance to pay bills through Amazon Pay, which allows you to pay utility bills, insurance, credit cards, loans, and more. Over 75,000 companies accept Amazon Pay.

Buying Other Gift Cards

If you want to use Amazon gift credits to pay a bill from a specific merchant, you can purchase digital gift cards on Amazon.com to convert your balance.

Thousands of brand-name retail, restaurant, and entertainment gift cards are available. For example, buy a Starbucks gift card to cover your morning coffee, or a Domino’s card for Friday night pizza.

When buying third-party digital gift cards, be sure to check terms, fees, and expiration dates carefully. But it’s one way to pay other bills with gifted Amazon credits.

Reselling Unwanted Gift Card Balances

For any unwanted or excessive Amazon gift cards you receive, you can exchange or resell them to turn the credit into cash. Then use those funds to pay important bills directly.

Popular resale options include:

• P2P marketplaces like Craigslist, Facebook, and Nextdoor
• Gift card exchange sites such as CardCash and Raise
• In-person at select pawn shops, jewelers, and gift card kiosks

When reselling gift cards, compare sites to get the best rates and watch out for fees. Turning unused Amazon credits into cash can give you needed bill payment flexibility.

Limitations to Be Aware Of

While the options above provide some creative ways to leverage Amazon gift cards for bill payment, there are limitations to note:

• Gift cards can only be used on Amazon, not withdrawn as cash.

• Entire balances must be used in one transaction.

• Purchased items can only be returned/exchanged for Amazon credit, not cash.

• Gift cards cannot directly pay non-Amazon bills for rent, utilities, loans, tuition, etc.

• Dormant balances can expire over time or incur fees.

So while Amazon gift cards aren’t ideal for paying most traditional bills, some strategic planning can help maximize their value within your overall budget and payment strategy.

Tips for Using Amazon Gift Cards for Bills

Follow these tips to make the most of Amazon gift cards for bill payment:

• Use gift card balances promptly to avoid losing unused funds over time.

• Check your total balance regularly in Your Account. New gift cards can take 1-2 days to appear.

• Consolidate low balances by reloading all funds onto one card.

• Stock up on essentials you’d typically buy with your bank card.

• Pay any Amazon subscription bills before your credit card is charged.

• Buy digital gift cards for the exact merchants you need to pay each month.

• Resell any unwanted cards through P2P platforms and gift card exchanges.

• Avoid unnecessary impulse purchases just because you have a balance.

With some savvy planning, Amazon gift cards can be integrated into an effective bill payment strategy. While they do have limits, creatively using your gifted balances can help boost your overall budget and cash flow.

The Bottom Line

You cannot directly pay an Amazon credit card, mortgage, utilities or other non-Amazon bills with an Amazon gift card. But there are opportunities to use Amazon gift balances to purchase household essentials, pay down your Amazon bills first, exchange balances for other gift cards, or resell unwanted cards. Ultimately, understanding the possibilities and limitations allows you to maximize the value of any Amazon gift credits you receive.