Direct transfer from gift card to bank account is not possible — you need an intermediary step
Gift cards are stored value tied to a specific retailer or payment network. Banks do not accept them as direct deposits because the money is not yet in a form the banking system recognizes. To move gift card value to your bank account, you must first convert it to actual currency through a reseller, a cash-out service, or the card issuer itself.
The method you choose depends on the card type, how much you need, and how quickly you need it. Some routes pay you the full value; others take a percentage. Some deposit money in hours; others take days or weeks.
Key Takeaways
- Gift card resale sites like Raise and CardCash buy your card at a discount (typically 70–90% of face value) and deposit cash to your bank account within days.
- PayPal, Square Cash, and similar payment apps let you link certain gift cards and transfer the balance to your account, though not all card types are supported.
- Some retailers let you return the card for store credit, then use that credit to buy a money order or gift card to yourself that you can cash.
- Bank-issued gift cards (Visa, Mastercard, American Express) can sometimes be transferred directly to a linked bank account through the card issuer's app or website.
- Peer-to-peer payment apps like Venmo and Cash App do not accept gift cards directly, but you can use them after converting the card to cash first.
Selling your gift card to a resale marketplace
Gift card resale sites buy unwanted cards from you at a discount and handle the sale to another buyer. The most established platforms are Raise, CardCash, Decluttr, and GameStop's trade-in program (for gaming cards). You list the card, set a price (or accept their offer), and once a buyer purchases it, the site deposits cash to your bank account.
Payouts typically range from 70 to 90 percent of the card's face value, depending on the retailer and current demand. Popular retailers like Amazon, Target, and Walmart cards sell closer to face value; niche or regional cards sell at steeper discounts. Most sites deposit funds within 2 to 5 business days after the sale completes.
The trade-off is the discount you take. If you have a $100 Amazon card and sell it for $85, you lose $15. However, if the card is for a store you will not use, converting it to cash at 85 percent is better than letting it sit unused.
Using payment apps to link and transfer gift card balances
PayPal and Square Cash allow you to link certain gift cards and transfer the balance to your bank account, though support varies by card type. PayPal accepts Visa, Mastercard, and American Express gift cards; Square Cash supports fewer card types but is expanding. To use this method, you add the gift card as a payment method in the app, then initiate a transfer to your linked bank account.
The process is faster than resale — often same-day or next-day — and you receive the full balance without a discount. However, not all gift cards work with these apps. Retailer-specific cards (Target, Walmart, Best Buy) are typically not supported because they are not part of the Visa or Mastercard network. You can check the app's help section or try adding the card to see if it is accepted.
Some payment apps charge a small fee (usually 1–3 percent) to transfer the balance to your bank account, though a few offer free transfers if you keep the money in your app wallet first.
Converting through the card issuer directly
If your gift card is issued by a bank — such as a Visa gift card, Mastercard gift card, or American Express gift card — the issuer may let you transfer the balance to a linked bank account through their app or website. Log into the card's account portal, look for a "transfer to bank" or "cash out" option, and follow the prompts to link your checking account.
This method is direct and usually free, but it only works for bank-issued cards, not retailer gift cards. You will need the card number, expiration date, and CVV to set up the transfer. Some issuers process transfers within 24 hours; others take 3 to 5 business days.
If the card issuer does not offer a direct transfer option, you can use the card to withdraw cash at an ATM (if it is a Visa or Mastercard), then deposit that cash at your bank. This avoids the resale discount but requires you to have access to an ATM and your bank's deposit methods.
Returning the card for store credit, then converting that
Some retailers will accept a return of an unused gift card for store credit or a refund to the original payment method. If the card was purchased with a debit card or credit card, the refund goes back to that card. If it was a cash purchase, some retailers issue a new card or store credit instead of cash.
This route is slower and less reliable than resale or direct transfer. Retailers have different policies — some accept returns within 30 days, others do not accept returns at all. You will need your receipt and the original card to be unused. If you do get store credit, you can then buy a money order or a prepaid card with that credit and deposit it, but this adds extra steps and fees.
What to watch for when converting gift cards
Resale sites and payment apps are legitimate, but scams exist. Never pay an upfront fee to sell a gift card, and never send the card details to someone who contacts you offering to buy it. Legitimate resale sites handle the transaction on their platform, not through email or text.
Check the terms of your gift card before attempting to transfer it. Some cards have restrictions on transfers or require you to contact customer service first. Prepaid cards issued by banks are more likely to allow transfers than retailer-specific cards.
If you are selling a card with a small balance (under $10), the resale discount may be steep enough that you lose money. In that case, using the card to make a purchase or donating it may be a better choice than selling.
Timing and fees across different methods
| Method | Time to receive cash | Percentage of face value | Card types accepted |
|---|---|---|---|
| Resale marketplace (Raise, CardCash) | 2–5 business days after sale | 70–90% | Most retailers and bank-issued cards |
| Payment app transfer (PayPal, Square Cash) | Same day to 2 business days | 100% (minus 1–3% fee if applicable) | Visa, Mastercard, Amex only |
| Card issuer direct transfer | 1–5 business days | 100% | Bank-issued cards only |
| ATM cash withdrawal | Immediate | 100% | Visa, Mastercard, Amex only |
| Retailer return for store credit | Varies; often no cash option | 100% (as store credit) | Depends on retailer policy |
Frequently Asked Questions
Can I transfer a retailer gift card like Target or Walmart directly to my bank?
No. Retailer-specific gift cards are not connected to the banking system and cannot be transferred directly. You must sell the card through a resale site, use it to make a purchase, or contact the retailer to ask about a return or refund policy.
What happens if I sell a gift card and the buyer disputes the transaction?
Resale sites hold your payment in escrow until the buyer confirms the card works. If the buyer reports the card as invalid or already used, the site investigates and may reverse the payment. This is why selling through an established marketplace is safer than selling to a stranger directly.
Do I have to pay taxes on the cash I get from selling a gift card?
Selling a gift card at a discount is generally not a taxable event because you are selling an asset at less than you paid for it. However, if you received the card as a gift and sell it for more than face value (rare), that gain may be taxable. Consult a tax professional if you are unsure about your situation.
Why do resale sites pay less than face value?
Resale sites buy cards at a discount so they can resell them to other customers at a profit. The discount also accounts for the risk that a card might be invalid or have a lower balance than claimed. Popular cards with high demand sell closer to face value; niche cards sell at steeper discounts.
Can I use a peer-to-peer payment app like Venmo to send a gift card to someone else?
No. Venmo, Cash App, and similar apps do not accept gift cards as payment. You must first convert the card to cash or a bank transfer, then send that money through the app. Some apps let you link a gift card as a payment method for your own purchases, but not for sending money to others.