By Bryce Casson, Founder · Cardocrat · Updated June 2026
The short answer: Redeeming points for gift cards typically returns about a cent per point, and often less, which means you are getting the floor value of points that could be worth several cents transferred to a travel partner. It is acceptable only for fixed-value cash-back points you would otherwise cash out anyway.
The value you give up
Most bank gift-card redemptions price points at a cent each or below, sometimes as low as 0.7 cents. For transferable points like Chase, Amex, Citi, and Capital One, that is the worst-case outcome, since the same points moved to an airline or hotel can return several cents. You are trading a high-ceiling currency for a low-fixed one. See what points are worth.
When it is acceptable
If your points are a fixed-value cash-back currency that you would redeem for cash regardless, a gift card at a full cent is roughly the same value and fine. The mistake is cashing out transferable travel points, which have a far higher ceiling, for gift cards. Match the redemption to the currency. See transferable points explained.
What to do instead
Keep transferable points for travel transfers, and if you want spending money, earn a flat cash-back card whose points are meant to be cashed out. Do not collect high-value travel points and then spend them on gift cards at a cent. See when cash beats points.
Frequently asked questions
How much are points worth as gift cards?
Usually about a cent each, and sometimes as low as 0.7 cents, which is the floor value. Transferable travel points can be worth several cents transferred to a partner, so gift cards waste most of that potential.
Is it ever okay to redeem points for gift cards?
Only for fixed-value cash-back points you would cash out anyway, where a gift card at a full cent is similar value. Avoid cashing out high-ceiling transferable travel points for gift cards.
What is a better use than gift cards?
Transfer travel points to an airline or hotel partner for a redemption worth several cents per point. For spending money, use a dedicated cash-back card rather than draining travel points.
Bryce Casson, Founder of Cardocrat. Every card is ranked by what it actually returns, with all points valued at a flat 1 cent and offers verified against issuer sources. About the author.
