You cannot deposit a gift card directly into a bank account, but you can move the money off it
A gift card is not a check or a transfer—it is a stored balance on a card issued by a retailer or payment network. Your bank has no way to read it or pull money from it the way it reads a routing number or account number. But you have several real ways to get that money into your account, depending on what kind of gift card you hold and how much friction you are willing to accept.
The fastest route is a money transfer app like PayPal, Square Cash, or Venmo. You add the gift card as a payment method, then send yourself money to your bank account—though some apps charge a fee for this, and some gift cards (particularly store cards) are blocked entirely. The most reliable route is to spend the gift card on something you would buy anyway, then use the cash you save to deposit into your account. The most direct route, if the card is a Visa or Mastercard gift card, is to use it to pay a bill online or buy something and return it for a refund to your bank account.
Key Takeaways
- Store gift cards (Target, Amazon, Walmart) cannot be deposited into a bank account because they are not tied to a bank routing number.
- Visa and Mastercard gift cards can sometimes be used to pay bills or make purchases online, which indirectly moves money into your account if you return the item.
- Money transfer apps like PayPal and Square Cash accept some gift cards as payment methods and can send the balance to your bank, though fees and restrictions vary.
- The simplest method is to spend the gift card on items you need, freeing up cash in your budget to deposit into your account instead.
- Some gift cards have expiration dates or inactivity fees, so check the card's terms before deciding how to use it.
How money transfer apps handle gift cards
PayPal, Square Cash, Venmo, and Google Pay all allow you to add a payment method and send money to a linked bank account. If you add a gift card to one of these apps, you can sometimes transfer its balance to your account—but the process and restrictions differ by app and by card type.
PayPal accepts Visa, Mastercard, and American Express gift cards as payment methods. You can add the card to your account, then use it to send money to your bank account, though PayPal charges a fee (usually 1.75% to 2.2% for transfers) and the card must have enough balance to cover the fee. Square Cash and Venmo are more restrictive: they accept Visa and Mastercard gift cards for purchases but do not allow you to transfer a gift card balance directly to your bank. Google Pay accepts some gift cards but blocks others depending on the issuer.
Store-branded gift cards (Amazon, Target, Walmart, Best Buy) are almost never accepted by these apps as a payment method, because they are not part of the Visa or Mastercard network. If you try to add one, the app will reject it.
Using a Visa or Mastercard gift card to move money indirectly
If you hold a Visa or Mastercard gift card, you can use it anywhere those networks are accepted—online, in stores, or to pay bills. This opens up indirect routes to get the money into your account.
One method is to use the card to pay a bill you already owe: your phone bill, internet bill, credit card payment, or loan payment. The money leaves the gift card and goes to the biller. You then have more cash in your pocket to deposit into your bank account. This does not move the gift card balance directly into your account, but it frees up money you would have spent anyway.
Another method is to make a purchase online and request a refund to your bank account. Some retailers will refund to the original payment method (the gift card), but others allow you to specify a different account. If you buy something returnable—a book, clothing, a small electronics item—and return it, you can sometimes request the refund go to your bank account instead of back to the gift card. This works best with large retailers like Amazon, Walmart, and Target, which have flexible return policies. Smaller retailers or gift cards with restrictions may not allow this.
Why store gift cards cannot be deposited directly
A store gift card is a closed-loop payment system: the card holds a balance that can only be spent at that retailer or its partners. It has no connection to the banking system. Your bank account has a routing number and account number that connect to the Federal Reserve and the ACH network. A gift card has neither. There is no pathway for your bank to read the card or pull money from it.
Visa and Mastercard gift cards work differently because they are open-loop: they connect to the Visa or Mastercard network, which connects to banks. But even these cards are not bank accounts. They are prepaid cards. Your bank still cannot deposit money into them or pull money out of them the way it can with another bank account.
Fees and timing for different methods
| Method | Fee | Timing | Card Types Accepted |
|---|---|---|---|
| PayPal transfer to bank | 1.75% to 2.2% of amount | 1 to 3 business days | Visa, Mastercard, Amex gift cards |
| Use card to pay a bill | None | Immediate (card balance decreases) | Visa, Mastercard gift cards only |
| Purchase and return for refund | None (if item is returnable) | 3 to 10 business days for refund | Visa, Mastercard gift cards only |
| Spend card, deposit cash savings | None | Immediate (when you deposit) | All gift cards |
What to check before you move the money
Before you commit to moving a gift card balance, look at the card itself or the receipt it came with. Most gift cards print an expiration date and information about inactivity fees. Some cards expire after a set number of years (often five to ten years, depending on state law). Others charge a monthly fee if the card is not used, which can drain the balance to zero over time.
If the card is close to expiring or has been inactive for a long time, prioritize moving the money soon. If the card is new and has years left, you have more flexibility in how you use it. Check the card's website or call the number on the back to confirm the balance and expiration date before you start.
Frequently Asked Questions
Can I deposit a gift card at an ATM?
No. ATMs only accept cash and checks. A gift card is neither. You cannot insert it into a deposit slot or use it at an ATM to move money to your account. You must use one of the methods described above: a money transfer app, a purchase and return, or spending the card and depositing cash instead.
What if my gift card is from a store, not Visa or Mastercard?
Store gift cards cannot be transferred to your bank account through any direct method. Your best option is to spend the card on items you need, then deposit the cash you save. You can also give the card to someone else or sell it on a gift card resale site, though you may receive less than the card's face value.
Does PayPal charge a fee to transfer a gift card balance to my bank?
Yes. PayPal charges 1.75% to 2.2% of the amount transferred, depending on the transfer speed you choose. The fee is deducted from the balance, so if your gift card has $100 and you transfer it, you will receive approximately $98 to $98.25 in your bank account.
Can I use a gift card to open a bank account?
No. Banks require a valid form of identification and proof of address to open an account. A gift card is neither. You cannot use it as a deposit to open an account, and it will not help you meet any bank's opening requirements.
What happens if I try to deposit a gift card at my bank's teller window?
The teller will tell you they cannot process it. A gift card is not a negotiable instrument like a check. Banks have no system to read it or convert it to a deposit. The teller may suggest you spend the card or use a money transfer app instead.