Direct transfers from gift cards to bank accounts are not possible
Most gift cards cannot transfer money directly to a bank account. The card issuer does not have a mechanism to send funds to an external bank, and the card networks (Visa, Mastercard, American Express) do not support that transaction type. What you can do instead depends on the card type and what you want to accomplish.
If you have a Visa or Mastercard gift card, you can use it to make purchases or withdraw cash at an ATM, then deposit that cash into your bank account. If you have a store gift card, you can spend it at that retailer or sometimes return merchandise for a refund to your original payment method — but that refund goes back to the card itself, not to a separate bank account. Third-party services that claim to convert gift cards to cash often charge high fees and may not be worth the cost.
Key Takeaways
- Visa and Mastercard gift cards can be used to withdraw cash at ATMs, which you can then deposit into your bank account.
- Store-specific gift cards cannot be transferred to a bank account; you can only spend them at that retailer or request a refund to the original card.
- Third-party gift card resale sites and cash-conversion services charge fees that often exceed 10 percent of the card's value.
- If a gift card has a remaining balance after a return, that money stays on the card and does not return to your bank account.
Using a Visa or Mastercard gift card to get cash
A Visa or Mastercard gift card works like a debit card and can be used at any ATM that accepts that network. Insert the card, enter the PIN (usually printed on the back or in the activation paperwork), and withdraw cash up to your daily limit. The amount comes out of the gift card balance, and you can then deposit the cash into your bank account at an ATM or teller window.
Some ATMs charge a fee for out-of-network withdrawals — typically $2 to $3 per transaction. If the gift card was issued by a specific bank (for example, a Bank of America Visa gift card), using an ATM at that bank usually avoids the fee. Check the card's terms or call the customer service number on the back to find fee-free ATM locations.
ATM withdrawal limits vary by card and by bank. A single withdrawal might be capped at $500 or $1,000, and daily totals might be lower. If you need to withdraw the full balance, you may need to make multiple trips or multiple transactions over several days.
What happens when you return merchandise bought with a gift card
If you purchased something with a gift card and return it, the refund goes back onto the gift card itself — not to your bank account. The retailer's system processes the return to the original payment method, which in this case is the gift card. The balance on that card increases by the refund amount.
This is true whether the store is physical or online. You cannot redirect a refund to a different payment method after the purchase is complete. If you want the money in your bank account, you would need to spend the refunded balance on something else, then sell that item, or use the card to withdraw cash if it is a Visa or Mastercard.
Store gift cards and why they cannot transfer to a bank
A store-specific gift card (Target, Amazon, Best Buy, etc.) is a closed-loop card that only works at that retailer or its affiliated stores. The issuer does not have the ability to send money to an external bank account because the card was never designed to function as a general payment tool. The funds are held in a merchant account controlled by the retailer, not in a banking system that connects to other financial institutions.
If you have a store gift card with a balance you do not want to use, your options are limited. You can spend it at the retailer, give it to someone else, or sell it through a gift card resale marketplace — though resale sites typically pay 70 to 90 percent of face value and charge the seller a fee.
Third-party services that convert gift cards to cash
Several websites and apps claim to buy gift cards from you or convert them to cash. These services include Raise, CardCash, and Decluttr. They work by purchasing your gift card at a discount, then reselling it to other buyers. The amount you receive is typically 70 to 90 percent of the card's face value, minus a processing fee.
For example, if you have a $100 store gift card, a resale site might offer you $75 to $85 after fees. The money is usually deposited into your bank account via ACH transfer within 3 to 5 business days. However, the discount means you are losing 15 to 30 percent of the card's value just to convert it to cash. This approach only makes sense if you have no intention of using the card and need the cash more than you need the discount.
Before using a third-party service, check whether the gift card has any restrictions. Some retailers do not allow their cards to be resold, and the service may reject it. Read the terms carefully to understand the fee structure and the timeline for payment.
Using a gift card as a payment method online
If you want to move money from a gift card to your bank account indirectly, you can use the card to pay bills or make purchases, then use the money you would have spent from your bank account for something else. This does not actually transfer the gift card balance to your bank, but it frees up money in your account that you can then use or save.
For example, if you have a $50 Visa gift card and a $100 electric bill due, you can charge $50 of the bill to the gift card and pay the remaining $50 from your bank account. This preserves $50 in your bank account that would otherwise have been spent. It is not a direct transfer, but it achieves a similar outcome if your goal is to keep your bank balance higher.
Frequently Asked Questions
Can I add a gift card to my bank account like a linked card?
No. A gift card is not a bank account and cannot be linked to your bank in a way that transfers its balance. You can use a gift card to make purchases or withdraw cash, but the card itself remains separate from your bank account. Some banking apps let you photograph a gift card for record-keeping, but that does not move money between them.
What if my gift card has a PIN and I forgot it?
Contact the card issuer's customer service number, usually printed on the back of the card or in your activation email. Provide your card number and proof of purchase or activation. They can reset the PIN or help you access the balance. If you cannot reach customer service, visit a physical location of the issuing bank or retailer to ask for help in person.
Do I have to pay taxes if I sell a gift card for cash?
If you sell a gift card for less than its face value, you are not creating taxable income — you are taking a loss. If you somehow sell it for more than face value (rare), that gain may be taxable. For most people, selling a gift card through a resale site is not a reportable transaction. When in doubt, consult a tax professional about your specific situation.
Can I transfer a gift card balance to someone else's bank account?
No. A gift card balance cannot be transferred to another person's bank account directly. You can give the physical card to someone else, or you can spend the balance and give them cash or transfer money to them separately. Some retailers allow you to email a digital gift card code, but that is different from transferring an existing balance.
What if the gift card issuer goes out of business?
If the retailer closes, your gift card balance may be lost. Retailers are not required to honor gift cards after closure in most states, though some states have laws requiring retailers to pay out remaining balances. Check your state's consumer protection laws or contact your state's attorney general's office. If the card was issued by a bank (Visa or Mastercard gift card), the bank remains responsible for the balance even if the retailer that sold it closes.