You cannot deposit a gift card directly into a bank account the way you would a check

A gift card is not a payment method your bank recognizes for deposit. Your bank's mobile app, ATM, and teller window all expect checks, cash, or transfers from other bank accounts — not plastic cards loaded with merchant credit. To move gift card money into your bank account, you have to convert the card balance to actual money first, then transfer that money in.

The conversion step is where your options split. Some gift cards let you transfer the balance to a linked payment app or digital wallet, which then connects to your bank. Others require you to spend the balance at the merchant or resell it. A few cards — mainly Visa and Mastercard gift cards — can be added directly to your bank account as a payment method, but that lets you spend from the card, not deposit into the account.

Key Takeaways

  • Merchant gift cards (Target, Amazon, Starbucks) cannot be deposited into a bank account; you must spend them at that merchant or convert the balance through a third-party service.
  • Visa and Mastercard gift cards can be linked to your bank account for spending, but linking is not the same as depositing — the money stays on the card.
  • Some digital wallet apps (PayPal, Square Cash, Apple Pay) accept gift card numbers and can transfer the balance to your bank, though fees and restrictions vary by app and card type.
  • Reselling unused gift cards through platforms like Raise or CardCash converts them to cash you can then deposit, though you typically receive 70 to 95 percent of the card's face value.
  • The fastest conversion is usually spending the card balance at the merchant, then depositing your own cash or paycheck into your bank account separately.

Linking a gift card to a payment app or digital wallet

Some gift cards can be added to PayPal, Square Cash, Apple Pay, or Google Pay. Once linked, these apps may let you transfer the balance to your connected bank account — but the process and fees depend on which app and which card you have.

PayPal accepts most Visa and Mastercard gift cards. You add the card number to your PayPal wallet, and then you can transfer the balance to your linked bank account. The transfer typically takes one to three business days, and PayPal charges no fee for the transfer itself, though your bank may charge a fee for receiving an incoming transfer (most do not). Merchant-specific cards like Amazon or Target gift cards do not work this way through PayPal.

Square Cash (now called Cash App) accepts Visa and Mastercard gift cards but does not offer a direct transfer to your bank account. Instead, you can add the card to your Cash App balance and spend it peer-to-peer or at merchants. To get the money into your bank account, you would have to receive a payment from someone else or find another route.

Apple Pay and Google Pay let you add gift cards for spending at merchants, but neither converts the balance to bank account money. They are payment methods, not deposit channels.

Adding a Visa or Mastercard gift card to your bank account for spending

If your gift card is a Visa or Mastercard (not a merchant-branded card), you can usually add it to your bank's bill pay or payment system. This does not deposit the money into your account — it lets you use the card to pay bills or make transfers from your bank account, as if the gift card were a credit card you were paying off.

To do this, log into your bank's website or app, go to the bill pay or transfer section, and select "add a payment method" or "add a card." Enter the gift card number, expiration date, and CVV. Your bank will verify the card with a small test charge (usually $1), which you can then reverse. Once verified, you can use that card to pay bills or send money, but the balance stays on the gift card itself — you are not moving money into your account.

This approach is useful if you want to spend down the card without carrying it, but it does not solve the problem of getting the money into your bank account as a deposit.

Reselling the gift card for cash

If you do not want to spend the card at its merchant, you can sell it on a gift card resale platform. The most common are Raise, CardCash, and Decluttr. You list the card, a buyer purchases it at a discount (typically 5 to 30 percent off face value), and the platform pays you via bank transfer, PayPal, or check.

The process usually takes three to seven business days from the time a buyer purchases your card. You upload a photo of the card or provide the code, the buyer receives it, and once they confirm it works, the platform releases payment to you. You then receive the cash in your bank account or PayPal account, which you can withdraw to your bank.

The trade-off is that you lose value — a $100 gift card might sell for $75 to $90. But if the card is for a merchant you will not use, or if you need cash urgently, resale is faster than trying to spend it down.

Spending the gift card and depositing your own money instead

The simplest path for most people is to spend the gift card at the merchant, then deposit cash or a paycheck into your bank account separately. This does not technically move the gift card money into your account, but it achieves the same result: your bank account balance increases by the amount you would have spent.

For example, if you have a $50 Target gift card and you use it to buy groceries you would have paid for anyway, you have freed up $50 of your own cash. Deposit that $50 into your bank account instead, and your account is $50 richer. The gift card money has been converted to bank account money indirectly.

This approach works best when the gift card is for a merchant you shop at regularly. It requires no fees, no waiting, and no loss of value.

What does not work: trying to deposit a gift card like a check

You cannot photograph a gift card and deposit it through your bank's mobile check deposit feature. Mobile deposit is for checks only — the bank's system reads the routing number, account number, and amount from the check's MICR line (the numbers at the bottom). A gift card has no MICR line and no routing information, so the deposit will be rejected.

You also cannot hand a gift card to a teller and ask them to deposit it. Tellers can only deposit checks, cash, and transfers from other accounts. A gift card is a prepaid card issued by a merchant or payment network, not a bank deposit instrument.

Fees and timing to expect

If you use PayPal to transfer a gift card balance to your bank, the transfer is free and takes one to three business days. If you resell the card, the resale platform takes a cut (usually 1 to 10 percent of the sale price), and payment arrives in three to seven business days. If you spend the card and deposit cash, there is no fee and the deposit clears the same day or next business day, depending on your bank and the time you deposit.

The fastest option is spending the card at the merchant and depositing cash immediately after. The most hands-off option is resale, if you do not mind losing 5 to 30 percent of the value. The middle ground is PayPal transfer, which is free but requires the card to be a Visa or Mastercard, not a merchant-specific card.

Frequently Asked Questions

Can I deposit a gift card at an ATM?

No. ATMs accept cash deposits and checks (at some banks), but not gift cards. You would need to convert the gift card to cash or a bank transfer first using one of the methods above.

What if my gift card is from a small store that is not Visa or Mastercard?

Merchant-specific gift cards (like a local restaurant or boutique) cannot be transferred to PayPal or linked to your bank. Your options are to spend the card at that merchant or resell it on a platform like Raise or CardCash, which accepts many smaller retailers.

Do I have to pay taxes on gift card resale?

If you sell a gift card for less than its face value, you are not generating taxable income — you are just recovering some of your loss. If you somehow sell it for more than face value (rare), that gain may be taxable. Keep records of the sale in case you need them for tax purposes.

Can I transfer a gift card balance to someone else's bank account?

No. Gift card balances are tied to the card itself, not to a person or account. You can give the physical card to someone else, or resell it, but you cannot transfer the balance to another person's bank account directly.

What happens if I lose a gift card before I convert it?

Most merchant gift cards can be replaced if you have the receipt or card number. Visa and Mastercard gift cards vary by issuer — some allow replacement, others do not. Contact the card issuer or merchant immediately if you lose the card, and ask whether they can freeze or replace it.