How the Gap Credit Card Works: Benefits and Rewards

Dec 13, 2023 By Triston Martin

In 2007, clothing retailer Gap Inc., listed on the New York Stock Exchange under the ticker symbol GPS, introduced its retail credit card. However, there are a few drawbacks and stipulations that prospective users need to be aware of before using the card. The card provides several advantages and benefits to consumers who make regular purchases.

The Gap Credit card is an affiliated card, which means that the credit card issuer and the clothes company collaborated to create the card. You will get five points for every dollar purchased at Gap-branded stores, whether in-person or online, using your Gap Visa card. You will receive one point for every dollar spent for all other transactions.

Functions of Gap Credit Cards

The credit card offered by The Gap is known as the GapCard, and it comes in a few different flavors. The store-only card is the most fundamental choice, and it may be utilized not just at Gap stores but also in many other stores. It may also be used to make purchases via the internet.

Consumers also can apply for a Gap credit card that is associated with a Visa. Such a card can be redeemed anywhere that accepts Visa payments and will earn reward points for the Gap loyalty program, though at a slower pace than purchases made at Gap family retail locations. Cash advances are available to cardholders of Visa for a cost of either four percent or a preliminary charge of ten dollars, whichever is greater.

Perks and Rewards of Having Gap Credit Cards

When they make their first purchase at Gap, new cards get a discount of 20% off their whole transaction.

When you shop at any of the stores part of the Gap family, you will earn one point for every dollar you spend. When used to make purchases at merchants other than Gap, Visa-enabled credit cards earn one point for every dollar spent. Because these points may be redeemed for a reward of $5 for every 500 points earned, using the card to make purchases at a Gap shop is equivalent to receiving a discount of 5% on all of those purchases.

In addition to these benefits, cardholders are extended invitations to participate in various unique activities. These include special incentives to earn additional credit card rewards on Tuesdays with an additional 10 percent discount on all commodities, birthday incentives, and an exemption on the company's refund receipt policy. Other perks include free shipping on all orders and a consent form on the manufacturer's return receipt policy.

When members reach a specific milestone, they will unlock a higher membership status level, which comes with extra incentives based on the total money spent on qualifying items. There are three tiers in total:

  • ESSENTIAL: An yearly brand expenditure of at least $500
  • ENTHUSIAST: Enthusiast is the first level that cardmembers are placed at, and members attain this level by spending between $500 and $999 annually.
  • ICON: A Cardmember with more than 5,000 points or a yearly brand spend of more than $1,000

Who Can Avail of These Benefits?

Customers who buy at stores that are part of the Gap family stand to profit the most from having this card, particularly those customers who are eligible for status upgrades. Those customers who purchase the majority of their apparel from Gap stores are the ones who stand to benefit the most from the increase in bonus points.

Interest Rates and Other Terms for the Gap Credit Card

The first discount is exclusively valid for purchases of goods bearing the Gap brand. There is no eligibility for items made by third parties. Several Gap family locations do not participate in the Tuesday discount program. There is no discount available at Banana Republic, Old Navy, Athleta, or any Banana Republic Factory Stores. The rate of return (APR) is 25.99 percent, approximately 10 percent more than the typical best buy credit card provided by banks, and represents the cost of borrowing money over a year.

Advantages of Gap Credit Card

  • In addition to a sign-up bonus and several status levels that may be attained via greater purchases, cardholders are awarded loyalty points and discounts that can be used at The Gap and places that are linked with the retailer.
  • Since the credit cards are provided in conjunction with Visa, these can be utilized at any other establishment that acknowledges the usage of credit cards.
  • Gap rewards: You'll get 5 points for every $1 spent at Gap-branded retailers and the Gap. All other purchases get 1 point per $1.
  • Once authorized online, you'll get 20% off your first spend with your new card. The discount may only be used at Gap or Gap Outlet once and within 30 days of initial registration.
  • As a cardmember, you're eligible for bonus point shopping days and a birthday gift if you've made a Gap purchase in the last year.
  • If you spend $1,000 at Gap-branded retailers or $5,000 on non-Gap expenditures in a calendar year, you'll gain Gap Silver membership. You'll get a 20% quarterly bonus, free online delivery, and basic adjustments at this level. You'll also have a hotline.

Disadvantages of Gap Credit Card

  • Like other store-branded cards, the Gap Credit card payments have a sky-high APR. This card's purchase APR is 25.99%. As of November 2021, the median APR for best buy credit cards was 16.44%. Paying down your amount each month avoids interest costs. If you carry a balance, look for a card with a lower APR. The Chase Freedom Mastercard features 0% intro APR. After that, your Interest will be 14.99-23.74%.
  • Pay heed to the Gap Credit card's international transaction fees if you intend to go abroad. When you use the card abroad or at home from a foreign merchant, you'll incur a 3% charge. A $1,000 transaction would cost $30 in fees. Others don't charge international transaction fees. SavorOne Reward system from Capital One provides no annual fee, no international transaction fees, and 3% cashback on eating and entertainment.

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