You cannot deposit a gift card directly into a bank account
Banks do not accept gift cards as deposits. A gift card is a prepaid card issued by a retailer or payment network—it holds a balance you can spend at specific stores or online—but it is not money in the way a bank recognizes deposits. Your bank has no way to verify the card's balance, convert it to cash, or credit your account.
What you can do instead is convert the gift card to cash or a bank transfer through a few different routes, each with different timelines and fees. Some methods are free; others cost a percentage of the card's value. The method that works depends on the card type, how much it is worth, and how quickly you need the money.
Key Takeaways
- Gift cards cannot be deposited directly into a bank account because banks do not process them as currency.
- You can sell a gift card to a resale platform like Raise or CardCash, which pays you via bank transfer, usually within one to three business days.
- Some retailers let you use a gift card to buy a money order or prepaid debit card, which you can then deposit or use to transfer funds to your bank.
- Peer payment apps like PayPal or Venmo let you link a gift card and transfer the balance to a connected bank account, though fees vary.
- Selling a gift card typically costs 5 to 15 percent of its value; direct bank transfers through apps cost less but are available only for certain card types.
Selling the gift card on a resale platform
The most straightforward route is to sell the gift card to a resale marketplace. Platforms like Raise, CardCash, and Decluttr buy unused gift cards from you and pay you cash via bank transfer. You list the card, set a price (usually a discount from face value), and once a buyer purchases it, you receive payment to your bank account.
The process typically takes one to three business days from the time a buyer claims your card. You will need to provide the card number and PIN, and the platform will verify the balance before releasing payment to you. Most platforms charge you a selling fee—usually 5 to 15 percent of the card's value—so a $100 gift card might net you $85 to $95.
This method works for most major retailers and payment networks, including Amazon, Target, Walmart, and Visa or Mastercard gift cards. Specialty cards (like a local restaurant or small retailer) may not have buyers and will not sell.
Using a peer payment app to transfer the balance
If the gift card is a Visa, Mastercard, or American Express card (not a store-specific card), you can link it to a peer payment app like PayPal, Venmo, or Square Cash and transfer the balance to your bank account. The app treats the gift card as a payment method, so you can move money from the card to your linked bank account.
The speed and cost depend on the app. PayPal typically transfers funds within one to three business days and charges no fee for transfers to your own bank account. Venmo transfers take one to three business days and are free. Square Cash (now called Cash App) transfers take one to three business days; standard transfers are free, but instant transfers cost 1.5 percent.
This method only works if the gift card is a general-purpose card (Visa, Mastercard, Amex) with a PIN or online access. Store gift cards cannot be linked to these apps.
Converting the gift card to a money order or prepaid card
Some retailers will let you use a gift card to purchase a money order or a prepaid debit card, which you can then deposit into your bank account or use to transfer funds. This is less common but works at some Walmart and grocery store locations.
You walk into the store, go to the customer service desk, and ask if you can use your gift card to buy a money order. If they say yes, you pay with the gift card and receive a money order made out to you. You then deposit the money order into your bank account through mobile deposit or at a branch. The process takes a few minutes in-store, plus one to three business days for the money order to clear in your account.
Not all retailers offer this, and policies vary by location. Call ahead or ask at the customer service desk before you visit.
Spending the gift card and depositing the cash
The simplest method, if you have time, is to spend the gift card on something you would buy anyway, then deposit any cash change you receive. If you buy groceries with a $100 gift card and spend $75, you can ask for $25 in cash back and deposit that into your account.
This only works if the retailer offers cash back on gift card purchases, and most do not. Grocery stores and some pharmacies are more likely to allow it than department stores or specialty retailers. Ask the cashier before you check out.
Why banks do not accept gift cards as deposits
A bank deposit must be currency or a negotiable instrument—a check, for example—that the bank can verify and convert to funds in your account. A gift card is neither. It is a contract between you and the retailer or payment network, not a financial instrument the bank can process.
Additionally, gift cards can be used only at specific merchants or networks. A bank has no way to verify the balance, confirm it has not been spent, or convert it to money that belongs in a checking or savings account. The card is also not insured by the bank, so the bank takes on risk if it accepts it and the card turns out to be fraudulent or already depleted.
Comparing your options by speed and cost
| Method | Timeline | Cost | Card Type |
|---|---|---|---|
| Resale platform (Raise, CardCash) | 1–3 business days | 5–15% of card value | Most retailers and networks |
| Peer payment app (PayPal, Venmo) | 1–3 business days | Free to 1.5% | Visa, Mastercard, Amex only |
| Money order at retailer | Few minutes + 1–3 business days to clear | Usually free | Depends on retailer policy |
| Cash back at checkout | Immediate | Free | Depends on retailer policy |
Frequently Asked Questions
Can I deposit a Visa or Mastercard gift card directly into my bank account?
No, not directly. But you can link a Visa or Mastercard gift card to a peer payment app like PayPal or Venmo and transfer the balance to your bank account within one to three business days, usually for free.
What if the gift card is from a specific store like Target or Amazon?
You cannot link store-specific cards to peer payment apps. Your best option is to sell the card on a resale platform like Raise or CardCash, which will pay you via bank transfer. You will receive 85 to 95 percent of the card's face value after fees.
How long does it take to get money from selling a gift card?
Most resale platforms transfer funds to your bank account within one to three business days after a buyer purchases your card. Some platforms are faster; check their website for their specific timeline.
Do I lose money when I convert a gift card to cash?
Usually yes. Resale platforms charge 5 to 15 percent. Peer payment apps are free or charge 1.5 percent for instant transfers. Money orders and cash back are typically free if the retailer allows them.
What happens if I sell a gift card and it turns out to have been used already?
Resale platforms verify the balance before paying you, so this should not happen. If it does, contact the platform immediately—most have buyer protection policies and will refund you or help you recover the money.