You cannot deposit a gift card directly into your bank account the way you would a check or cash
Banks do not accept gift cards as deposits. A gift card is a stored-value product issued by a retailer or payment network—it holds money tied to that specific merchant or system, not to your bank. Your bank account and a gift card are separate financial containers, and money cannot move between them through a deposit slip or ATM.
What you can do instead depends on what kind of gift card you have and whether the issuer offers a way to convert it. Some gift cards can be transferred to a payment app, sold for cash through a resale platform, or used to buy something you can then resell. Others have no conversion path at all.
Key Takeaways
- Gift cards cannot be deposited directly into a bank account because they are not bank instruments—they are stored-value products issued by retailers or payment networks.
- Visa, Mastercard, and American Express gift cards can sometimes be added to digital payment apps like PayPal or Venmo, which can then transfer money to your bank account.
- Retailer-specific gift cards (Target, Amazon, Starbucks) have no official conversion method and can only be spent at that retailer or resold on a secondary market.
- Gift card resale sites buy unused cards at a discount and pay you through bank transfer, check, or PayPal, though you will receive less than the card's face value.
- Some gift cards allow you to request a cash refund of the remaining balance, but this varies by issuer and state law.
Network gift cards (Visa, Mastercard, Amex) and payment apps
If your gift card is issued by Visa, Mastercard, or American Express—rather than by a specific store—you have more options. These cards work like prepaid debit cards and can sometimes be linked to a digital payment app.
PayPal, Venmo, and Square Cash all allow you to add a card as a payment method. Once linked, you can transfer the balance from the gift card to your bank account, though the process varies. PayPal lets you transfer a linked card's balance to your bank account in some cases, but Venmo and Square Cash typically require you to spend the card balance first and then transfer your own money out. Check the app's help section for the specific steps, as policies change.
Another option: use the gift card to make a purchase online, then return the item for a refund to your bank account. This works if the retailer accepts the card and processes refunds to the original payment method. You will lose any return shipping costs, so this only makes sense for free-return items.
Retailer-specific gift cards and resale platforms
A Target, Amazon, Starbucks, or other store-branded gift card cannot be moved to your bank account through any official channel. The card is only good at that retailer. Your options are to spend it there or sell it on a secondary market.
Gift card resale sites like CardCash, Raise, and Decluttr buy unused cards from you and pay you cash. You list the card, the buyer purchases it, and you receive payment by bank transfer, check, or PayPal. The catch: you will receive less than the card's face value—typically 70 to 95 percent, depending on the retailer and current demand. Popular cards (Amazon, Target, Starbucks) sell closer to face value; niche retailers sell at steeper discounts.
The process usually takes a few days to a week. You will need to provide the card number and PIN, and the site will verify the balance before paying you. Make sure the platform is legitimate—check reviews and confirm it uses secure payment methods before sending card details.
Requesting a cash refund from the issuer
Some gift card issuers will refund the remaining balance to you as cash, though this is not may provide and depends on the issuer and your state's laws. A few states require retailers to offer cash refunds for small balances (usually under $5 or $10), but most do not.
Contact the retailer or card issuer directly and ask whether they offer cash refunds. Be prepared to provide proof of purchase or the card number. If they refuse, check your state's consumer protection laws—some states have passed legislation requiring retailers to cash out gift card balances, though enforcement varies.
This option works best for cards with very small remaining balances that are not worth the effort to spend or resell.
What happens if you lose or damage a gift card
If your gift card is lost or damaged, contact the issuer immediately. Most retailers and payment networks can look up the card by number and issue a replacement if the balance has not been spent. Keep your receipt or proof of purchase—issuers often require it to process a replacement.
For network cards (Visa, Mastercard, Amex), the process is similar to disputing a lost debit card. Call the number on the back of the card or visit the issuer's website. For retailer cards, go to the store or call customer service. Response times vary from same-day to several weeks.
Tax and reporting considerations
If you receive a gift card as a gift from a friend or family member, there are no tax consequences for you. Gift cards are not considered income.
If you receive a gift card as a work bonus or incentive, your employer may be required to report it as taxable income on your W-2 or 1099, depending on the amount and how it is classified. Ask your employer or payroll department whether the card counts as a taxable benefit.
If you sell a gift card on a resale platform, the transaction itself is not taxable—you are converting an asset you already own into cash. However, if you buy gift cards at a discount and resell them for profit as a business, that income is taxable.
Frequently Asked Questions
Can I use a gift card to open a bank account?
No. Banks require an initial deposit in the form of cash, check, or transfer from another account. A gift card cannot be used to fund a new account because it is not a bank instrument. You would need to convert the gift card to cash or transfer it to a payment app first, then use that money to open the account.
What if the gift card has a very small balance left?
If the balance is too small to spend easily, you have three options: combine it with another payment method at the retailer, request a cash refund from the issuer (if they offer it), or list it on a resale site. Many resale platforms accept cards with balances under $5, though you will receive even less than the card's value after their fee.
Can I transfer a gift card balance to someone else?
Most retailer gift cards cannot be transferred to another person once purchased. Some payment networks allow you to add the card to a shared account or payment app, but this is not the same as transferring the balance. Your best option is to give the physical card to someone else, or sell it on a resale platform and give them the cash.
Do gift cards expire?
Federal law requires most gift cards to remain valid for at least five years from the date of purchase. Some states require longer periods. Check the card's terms or contact the issuer to confirm the expiration date. Even after expiration, some issuers will honor the balance if you contact them, though they are not legally required to do so.
Is there a fee to convert a gift card to cash?
Resale platforms charge a commission, typically 5 to 30 percent of the card's value, which means you receive less than face value. Direct cash refunds from the issuer usually have no fee, but most issuers do not offer this option. Transferring to a payment app has no fee, but you may lose value if the app charges transaction fees when you move money to your bank account.