Direct transfer from gift card to bank account is not possible
You cannot transfer a gift card balance directly into your bank account. Gift cards are closed-loop payment instruments—the money lives in that card's system and cannot be moved to a different financial institution. However, you have several practical ways to convert a gift card into usable bank funds, depending on the card type and what you are willing to do.
The most straightforward route is to spend the gift card at the retailer or service it was issued for, then deposit your own money into your bank account instead. But if you want the actual card value in your account, you will need to use a resale platform, a cash-back service, or a third-party payment app—each with different timelines, fees, and restrictions.
Key Takeaways
- Gift card balances cannot move directly to a bank account because they are locked to a specific retailer or payment network.
- Resale platforms like CardCash and Raise buy gift cards at a discount (typically 70 to 95 percent of face value) and pay you via bank transfer or PayPal.
- Some payment apps like PayPal and Square Cash let you link a gift card and spend it like a debit card, but the balance stays in the app, not your bank.
- Selling a gift card takes three to seven business days from the time the buyer receives it; fees and discounts vary by platform and card type.
- Retail gift cards sell faster and at higher percentages than restaurant or specialty cards, and Visa or Mastercard gift cards are easiest to move.
Resale platforms: selling your gift card for cash
Gift card resale sites buy unused cards from you at a percentage of their face value and send you the money via bank transfer, PayPal, or check. The most established platforms are CardCash, Raise, Decluttr, and Best Buy Trade-In (for Best Buy cards only). You list the card, a buyer purchases it, and the site holds the funds until the buyer confirms they received a working card. That confirmation typically takes three to seven business days.
The percentage you receive depends on the card type and current demand. Visa and Mastercard gift cards usually sell at 85 to 95 percent of face value. Retail cards like Target or Walmart sell at 80 to 90 percent. Restaurant and entertainment cards often move at 60 to 75 percent. Some platforms charge a small seller fee (usually 5 to 10 percent of the sale price), so read the terms before you list. If your card does not sell within 30 to 60 days, most platforms let you delist it.
Payment apps: spending the card without converting it
Apps like PayPal, Square Cash, Google Pay, and Apple Pay let you link a gift card and use it to pay for things online or in stores. This does not move the money to your bank account—it keeps the balance in the app—but it does let you spend the card's value anywhere the app is accepted. If you need the money as actual bank funds, this route does not solve that problem.
Some cards, like Visa or Mastercard gift cards, can be linked to these apps immediately. Retail gift cards (Target, Walmart, Amazon) usually cannot be added to third-party payment apps; you can only use them at that retailer's own checkout. Check the app's help section or the back of your card to see if linking is an option.
Buying something and returning it for a refund
If you purchase an item with a gift card and return it, the refund typically goes back to the original payment method—the gift card itself. You end up with the same problem. However, some retailers will issue a store credit or a new gift card instead of a refund to the card. That does not help you reach your bank account either.
A few retailers will issue a refund to a debit card or bank account if you provide one at the time of return, but this is rare and depends on the store's policy. Call the retailer's customer service line before you make a purchase to ask whether they offer this option. Do not count on it as your primary strategy.
Peer-to-peer payment apps and local sales
You can sell a gift card to someone you know or a stranger using Venmo, PayPal, or a local marketplace like Facebook Marketplace or Craigslist. You send the card details (or the physical card) to the buyer, they confirm it works, and they send you money via the app or in cash. This is faster than a resale platform but carries more risk: the buyer could claim the card does not work and dispute the payment, or you could lose the card in the mail if you ship it.
If you go this route, use a payment method that offers buyer and seller protection—PayPal Goods & Services or Venmo's payment option, not a peer transfer. Meet in person if possible so the buyer can test the card before paying. Keep screenshots of the transaction and any messages about the card's balance.
Why you cannot transfer directly, and what that means
Gift cards are stored-value cards: the money is held by the card issuer (the retailer or the payment network), not by a bank. When you swipe or enter the card number, the issuer's system deducts the amount from that card's balance. Your bank account and the gift card system do not connect, so there is no pathway for the money to move between them. This is by design—it protects retailers from fraud and keeps gift card funds separate from the banking system.
The only way to get the money into your bank account is to convert it into a form your bank recognizes: a direct deposit, a bank transfer, a check, or cash. Resale platforms do this by buying the card from you and paying you through banking channels. Everything else—spending the card, linking it to an app, returning items—keeps the money in the gift card ecosystem.
Comparing your options: speed, cost, and hassle
| Method | Time to Bank Account | You Receive | Fees or Loss | Best For |
|---|---|---|---|---|
| Resale platform (CardCash, Raise) | 3–7 days after buyer confirms | 70–95% of face value | 5–30% discount + platform fee | Any card type; fastest legitimate conversion |
| Local sale (Venmo, cash) | Same day to 1 day | 50–90% of face value (negotiated) | Negotiated discount; fraud risk | High-value cards; willing to meet in person |
| Payment app (PayPal, Google Pay) | Immediate | Stays in app; not in bank | None, but money does not reach bank | Spending the card value without conversion |
| Spend and deposit own money | Immediate | 100% of card value (as purchases) | None, but requires your own cash | When you were going to buy that item anyway |
Frequently Asked Questions
Can I use a gift card to pay a credit card bill and then withdraw the money?
No. Most credit card issuers do not accept gift cards as payment. Even if one did, paying a credit card bill with a gift card does not move the money to your bank account—it just reduces your credit card balance. You would still need to convert the gift card separately.
What if my gift card has a very small balance left?
Resale platforms usually have a minimum balance requirement, often $5 or $10. If your card is below that, you cannot sell it on most platforms. Your best option is to spend the remaining balance at the retailer or link it to a payment app and use it for a small purchase.
Do I have to pay taxes on the money I get from selling a gift card?
Selling a gift card at a loss (below face value) is generally not a taxable event for personal use. If you received the gift card as a gift, you have no tax basis to report. If you bought the card yourself and are selling it at a loss, that loss is not deductible. Consult a tax professional if you are selling gift cards in large quantities or as a business.
Is it safe to sell my gift card on a resale platform?
Established platforms like CardCash and Raise hold your payment until the buyer confirms the card works, which protects you from fraud. However, you should never sell a gift card you did not receive or do not own. The buyer could report it as stolen, and the platform could reverse the payment and ban your account.
Can I transfer a gift card balance to another gift card?
Not directly. Some retailers let you combine multiple gift cards at checkout, but that is spending them together, not transferring the balance. If you want to consolidate balances, you would need to spend one card and buy a new card with your own money, which defeats the purpose.