You cannot deposit a gift card directly into a bank account
A gift card is not money — it is a promise from a retailer or card issuer to let you buy things up to a certain dollar amount. Your bank cannot accept it as a deposit because the bank has no way to convert it into actual funds. The card itself holds no value that the bank can transfer or verify.
What you can do instead depends on what kind of gift card you have. Some cards let you transfer their balance to a linked payment app or debit card. Others require you to spend the balance at the retailer or resell the card. A few specialized cards — like Visa or Mastercard gift cards — can be used like a debit card to withdraw cash at an ATM, which then lands in your account as a normal deposit.
Key Takeaways
- Gift cards cannot be deposited directly because they are not currency — they are retailer-specific promises to let you spend money.
- Visa and Mastercard gift cards can be used at ATMs to withdraw cash, which you can then deposit as normal cash.
- Some gift cards let you transfer the balance to a payment app like PayPal or Venmo, which can then move money to your bank account.
- Retailer-specific gift cards (Target, Amazon, Starbucks) have no built-in cash-out feature and must be spent at that retailer or resold.
- Reselling a gift card through a marketplace like CardCash or Raise converts it to cash, but you receive less than the card's face value.
How Visa and Mastercard gift cards work differently
A Visa or Mastercard gift card functions like a debit card because it carries the Visa or Mastercard logo and can be used anywhere those cards are accepted. This means you can use it at an ATM to withdraw cash. The cash then becomes a normal bank deposit when you put it into your account.
To withdraw cash, insert the card into any ATM that accepts Visa or Mastercard, enter your PIN (or the last four digits of the card number if no PIN was set), and select the withdrawal amount. The ATM will dispense cash up to your remaining balance. You can then deposit that cash at your bank's teller window or ATM, and it will show up in your account as a normal deposit within one to two business days.
Some Visa and Mastercard gift cards charge a fee for ATM withdrawals — typically $2 to $3 per transaction. Check the card's terms before you withdraw, or call the number on the back of the card to confirm whether fees apply.
Transferring gift card balances through payment apps
Some gift cards allow you to link them to payment apps like PayPal, Venmo, or Square Cash, which can then transfer money to your bank account. This works only if the gift card issuer has partnered with that app — not all have.
To check if your card supports this, log into the payment app and look for an option to add a card or link a payment method. If the app accepts your gift card, you can load the balance into your app account. From there, you can transfer the money to your linked bank account. The transfer usually takes one to three business days.
Amazon gift cards, for example, can be added to your Amazon account and used to make purchases, but cannot be transferred to a payment app or withdrawn as cash. Target gift cards have no transfer feature at all. Always check the card issuer's website or call their customer service number to learn what options are available for your specific card.
Reselling a gift card for cash
If the gift card cannot be transferred or withdrawn as cash, you can sell it on a gift card marketplace. Sites like CardCash, Raise, and Decluttr buy unused gift cards and pay you cash or deposit funds directly to your bank account.
The amount you receive is typically 70 to 90 percent of the card's face value, depending on the retailer and current demand. A $100 Target gift card might sell for $85 to $92. The marketplace takes a cut, and some retailers' cards are worth less because fewer people want them.
The process is straightforward: list the card on the marketplace, provide the card number and PIN when prompted, and wait for the site to verify the balance. Once verified, you receive payment — usually within one to five business days. Some sites offer instant payment for a slightly lower price. Check the marketplace's terms to see whether they deposit directly to your bank account or send a check.
Why retailers do not allow direct deposits
Retailer-specific gift cards — like those from Starbucks, Best Buy, or Whole Foods — are designed to keep money within that retailer's ecosystem. The card issuer profits when you spend the balance at their store, not when you convert it to cash. Allowing direct bank deposits would defeat that purpose.
These cards also carry fraud risk. If a retailer allowed direct deposits, they would have to verify that each card is legitimate and that the balance is real before sending money to a bank. That verification process is expensive and slows down transactions. Payment networks like Visa and Mastercard handle that verification for their own branded cards, which is why those cards can be used at ATMs.
What happens if you try to deposit a gift card
If you walk into a bank and try to deposit a gift card as if it were a check or cash, the teller will explain that gift cards cannot be deposited. Some banks may offer to scan or photograph the card for your records, but no funds will be transferred to your account.
Online banking systems do not have a deposit option for gift cards at all — you can only deposit checks, transfer money from other accounts, or add cash through an ATM. There is no workaround within the banking system itself.
Frequently Asked Questions
Can I use a gift card to pay my credit card bill?
No. Credit card companies do not accept gift cards as payment. However, you can use a Visa or Mastercard gift card to make a purchase anywhere that accepts those cards, which frees up cash you would have spent elsewhere — effectively the same outcome. Some payment apps let you link a gift card and then pay your credit card bill from that app, but the gift card itself cannot be used directly.
What if my gift card has a very small balance left?
If the balance is under $5, most gift card resale sites will not accept it because the payout would be too small to justify processing. You can still spend it at the retailer, use it at an ATM if it is a Visa or Mastercard card, or combine it with another payment method to make a purchase.
Do I need a PIN to withdraw cash from a gift card at an ATM?
Most Visa and Mastercard gift cards come with a PIN set by the issuer, which is usually printed on the card or sent separately. If you do not have the PIN, call the number on the back of the card and request it. Some ATMs will let you use the last four digits of the card number instead of a PIN.
Can I deposit someone else's gift card?
No. Gift cards are typically non-transferable and tied to the original recipient. Attempting to use or resell someone else's gift card may violate the card's terms. If someone gives you a gift card, you can use it yourself, but you cannot transfer ownership to another person or deposit it in their account.
How long does it take to get cash from a gift card resale site?
Most sites deposit funds within one to five business days after verifying the card balance. Some offer instant payment options for a lower payout — typically 5 to 10 percent less than the standard rate. Check the site's payment policy before you list the card.