Trade in for a Refurbished iPhone

If you receive instant trade-in credit in an Apple Store, that credit is usually applied only to the purchase being made in the store at that moment. The tricky part is that refurbished iPhones are generally sold only through Apple’s online refurbished store, not in most physical stores. So the “instant credit” method normally cannot be applied directly to a refurbished iPhone purchase.

Check if you can get an Apple Gift Card, which then can be used for an online purchase of a refurbished iPhone.

There is no mention of Apple Gift Card in this Apple offer article: iPhone Exchange Offer - Apple Trade In

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You can request a gift card at the store and grant your request. If they insist on a purchase because they are issuing a credit, purchase a case or screen protector for the new iPhone and the difference between the purchase and store credit will be applied to a gift card.

There may be other options too, depending on how the store handles it.

Are you thinking of trading in your iPhone in an Apple Retail Store or online? SravanKrA is 100% correct. Trading in your device in store may give you additional options or workarounds to obtain a gift card for use online.