You cannot deposit a gift card directly into a checking account
A gift card is not money—it is a stored-value card issued by a retailer or payment network. Your bank's deposit system expects cash, checks, or electronic transfers from other bank accounts. When you try to deposit a gift card, the bank has no way to convert it to funds because the card itself holds no account number the bank can pull from.
What you can do instead is convert the gift card to cash or a bank transfer first, then deposit that. The method depends on what kind of gift card you have and which retailer or network issued it.
Key Takeaways
- Gift cards cannot be deposited directly into a checking account because they are not linked to a bank account number.
- Visa, Mastercard, and American Express gift cards can be used at ATMs or online to transfer funds to your bank account through their apps or websites.
- Retailer gift cards (Target, Amazon, Walmart) must be spent at that retailer or converted to cash through a third-party service, which may charge a fee.
- Some gift card resale platforms will buy your card for cash, but they typically pay less than the card's face value.
- The fastest option for bank-issued gift cards is usually the issuer's mobile app or website, which can move money to your account in one to three business days.
How to convert bank-issued gift cards to checking account funds
Visa, Mastercard, and American Express gift cards are issued by banks or payment networks, not retailers. These cards work like debit cards and can be linked to your bank account through the card issuer's app or website. Log into the issuer's portal, find the option to transfer funds or link to your bank account, and enter your checking account number and routing number. The transfer typically takes one to three business days.
If the app does not offer a direct transfer, you can use the card at an ATM to withdraw cash, then deposit the cash at your bank. Some ATMs charge a fee for this ($1 to $3 per withdrawal), so check your card's terms first.
Another option is to use the card to make a purchase online or in person, then return the item for a refund to your bank account. This works only if you actually want something the card can buy, and it takes longer than a direct transfer.
Converting retailer gift cards to cash or bank transfers
Retailer-specific gift cards (Target, Walmart, Best Buy, Amazon) are harder to convert because they are locked to that store's system. You cannot transfer them to your bank account directly. Your options are to spend the card at that retailer, sell it to a third party, or use a cash-back service if the retailer offers one.
Some retailers let you use their gift card to buy a money order or prepaid card at the store, which you can then deposit or cash. Target, for example, allows you to purchase a money order with a gift card at customer service. A money order can be deposited into your checking account like a regular check.
Gift card resale platforms like Raise, CardCash, and Decluttr will buy your card for cash, but they typically pay 70 to 95 percent of the card's face value. The discount depends on the retailer and current demand. You receive payment via bank transfer, PayPal, or check, which then goes into your account. This process takes three to seven business days from the time they receive and verify your card.
What happens if you try to deposit a gift card at the bank
If you walk into a bank branch or use a mobile deposit app and try to photograph or insert a gift card, the transaction will be rejected. The bank's system cannot read a gift card as a valid deposit instrument because it is not a check, cash, or electronic transfer. The teller or app will simply decline it and ask for an acceptable form of deposit.
Some people have tried to deposit gift cards by mistake, thinking they work like prepaid debit cards. They do not. A prepaid debit card is linked to a bank account and can sometimes be transferred, but a gift card is a separate payment instrument with no bank account behind it.
Fees and timing for each conversion method
| Method | Card Type | Typical Fee | Time to Funds |
|---|---|---|---|
| Direct app or website transfer | Visa, Mastercard, Amex gift cards | None | 1–3 business days |
| ATM cash withdrawal | Visa, Mastercard, Amex gift cards | $1–$3 per withdrawal | Immediate (then deposit cash) |
| Money order at retailer | Retailer gift cards | $1–$2 for money order | 1–3 business days (after deposit) |
| Gift card resale platform | Any gift card | 5–30% of card value | 3–7 business days |
Why banks do not accept gift cards as deposits
Banks process deposits by reading account numbers and routing numbers from checks, or by receiving electronic transfers from other financial institutions. A gift card has neither. It is a proprietary payment system run by a retailer or payment network, separate from the banking system. When you swipe or tap a gift card, the transaction goes to that retailer's or network's server, not to a bank.
For a bank to accept a gift card as a deposit, it would need to contact the gift card issuer, verify the balance, and transfer those funds into your account—a process that would take days and cost the bank money for each transaction. Instead, banks ask you to convert the gift card to cash or a bank transfer first, which you can then deposit using standard methods.
Frequently Asked Questions
Can I deposit a Visa or Mastercard gift card into my checking account?
Not directly, but you can transfer the balance to your bank account through the card issuer's app or website. Log in, link your checking account, and request a transfer. It typically takes one to three business days. Alternatively, withdraw cash at an ATM and deposit the cash.
What is the best way to convert a retailer gift card to cash?
If the retailer offers it, buy a money order with the gift card at the store and deposit it like a check. If not, sell the card to a resale platform like Raise or CardCash, though you will receive less than the face value. Spending the card at the retailer is the only way to get full value.
Will my bank charge me a fee to deposit cash from a gift card withdrawal?
No, depositing cash is free. However, the ATM where you withdraw the cash may charge $1 to $3 per transaction. Check your gift card's terms to see if the issuer reimburses ATM fees.
How long does it take to get money from a gift card resale site?
Most platforms take three to seven business days from the time they receive and verify your card. They pay via bank transfer, PayPal, or check. Factor in an additional one to three days if you choose check payment and need to deposit it.
Can I use a gift card to open a checking account?
No. Banks require an initial deposit of cash, a check, or an electronic transfer from another account. A gift card cannot be used to open an account because it is not a valid deposit instrument.