Stolen credit cards are often used to buy gift cards, which are then "washed" by buying other cards to hide the trail.
Buying a gift card with another gift card is generally by most major retailers, but there are specific exceptions depending on the type of card you hold and where you shop. The Short Answer
Branded cards like Visa or Mastercard often work because they function like debit cards.
These "open-loop" cards are usually accepted as standard debit/credit at checkout. Smart Workarounds If you are stuck with a gift card you don't want: How to Buy a Gift Card with a Gift Card - Giftcards.com
Gift cards are explicitly listed as an excluded payment method for other cards. No
Retailers want to keep the money within their own ecosystem rather than letting you convert store credit into a more flexible card.
It prevents people from buying discounted gift cards and "trading up" to full-value universal cards. Common Store Policies Can You Buy a Gift Card with a Gift Card? Amazon No Restrictions apply to both physical and digital cards. Walmart No
Most stores (like Walmart and Target ) strictly prohibit using their store gift cards to buy other gift cards.