Do you have to redeem your iTunes gift card every time you buy something? Or does it take money off the card automatically?

Do you have to redeem your iTunes gift card every time you buy something? Or does it take money off the card automatically?

As far as I know redeeming a card simply adds the value to your account.
When I credit a gift card I get a credit appearing in my iTunes account.
Every time I buy something the cost is deducted from my 'iTunes credit', the card is no lobger needed or usable after redemption.
AC

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