You cannot deposit a gift card directly into a bank account
A gift card is not money—it is a prepaid voucher that works only at the store or service that issued it. Your bank will not accept it as a deposit because the bank has no way to convert it into cash on its own. To get the money into your bank account, you have to spend the gift card first, then move the cash or refund back into your account through a method your bank recognizes.
The path depends on what kind of gift card you have and whether the retailer offers a way to turn it into cash or a bank transfer. Some retailers make this straightforward; others do not offer the option at all.
Key Takeaways
- Gift cards cannot be deposited directly into a bank account because they are store credit, not money.
- Visa, Mastercard, and American Express gift cards can often be transferred to a linked bank account through the card issuer's website or app.
- Retailer-specific gift cards (Target, Amazon, Walmart) must be spent at that retailer or converted to cash through their customer service if they offer that option.
- Some retailers will issue a refund to your original payment method if you return a purchase made with a gift card, which may deposit directly to your bank account.
- Third-party services that buy gift cards for cash exist but typically pay 70 to 90 cents per dollar and may have fees or verification delays.
How to transfer a Visa, Mastercard, or Amex gift card to your bank
Network gift cards—those branded Visa, Mastercard, or American Express—can often be linked to your bank account and transferred as a balance or withdrawal. The process varies by the card issuer.
For a Visa or Mastercard gift card, log into the card issuer's website or app (usually listed on the back of the card or in your email confirmation). Look for an option to "transfer to bank," "cash out," or "add to account." You will need your bank account number and routing number. The issuer will verify the account, and the transfer typically completes in one to three business days. Some issuers charge a small fee for this service; others do not.
For an American Express gift card, visit americanexpress.com or use the Amex app. Select the card, then look for "transfer funds" or "send money." You can transfer the remaining balance to a linked bank account, though Amex may require you to set up a personal account first. Transfers usually take one to two business days.
If the card issuer's website does not offer a transfer option, you may be able to use the card to make a purchase online, then return it for a refund to your bank account—though this depends on the retailer's return policy.
Converting retailer gift cards to cash or bank transfers
Retailer-specific gift cards (Target, Walmart, Best Buy, Amazon) are harder to convert because they only work at that store. Most retailers do not offer a direct cash-out or bank transfer option. Your options are narrower:
Return a purchase and request a refund to your bank account. If you buy something with the gift card and return it, many retailers will refund the money to your original payment method. If the original payment was a debit or credit card linked to your bank, the refund may deposit directly into your account. This takes five to ten business days depending on your bank. The catch: you have to buy something first, and you need a returnable item.
Contact the retailer's customer service. Some retailers (Amazon, for example) will convert a gift card balance to an account credit that you can use to purchase a digital item, then return it for a refund. Others may offer a cash-out option if you call and explain your situation, though this is not may provide. Call the retailer's customer service number on the back of the card or on their website.
Sell the gift card to a third party. Websites like Raise, CardCash, and Decluttr buy unused gift cards for cash. You list the card, they verify the balance, and they pay you—usually 70 to 90 cents per dollar of the card's value. The payment goes to your PayPal account, bank account, or check, depending on the service. Processing takes three to seven business days. These services take a cut, so you lose money on the transaction.
Using a gift card to fund a payment app, then transferring to your bank
If the gift card is a network card (Visa, Mastercard, Amex) and the issuer does not offer a direct bank transfer, you can use it to load money into a payment app like PayPal, Venmo, or Square Cash, then transfer that balance to your bank account.
Add the gift card as a payment method in the app, then load money from the card into your app account. Once the balance is in the app, transfer it to your linked bank account. This works because payment apps recognize network cards as valid payment methods. The downside: some apps charge fees for loading money from a card, and the transfer to your bank may take one to three business days. Check the app's fee schedule before you start.
What happens if the gift card issuer is out of business
If the company that issued the gift card has closed or stopped honoring cards, your options shrink. Network cards (Visa, Mastercard, Amex) are protected by the card networks themselves, so you can still contact the issuer to recover the balance. Retailer-specific cards issued by a closed company are usually worthless unless the retailer was acquired by another company that honors old cards.
Check the card issuer's website or call their customer service number to confirm the card is still valid. If the issuer is truly defunct, contact your state's attorney general office or the Consumer Financial Protection Bureau to report the loss. You may be able to file a claim, though recovery is not may provide.
Fees and timing to expect
The cost and speed of converting a gift card to bank money depend on the method:
| Method | Fee | Timeline |
|---|---|---|
| Network card bank transfer (Visa, Mastercard, Amex) | $0 to $2 | 1 to 3 business days |
| Retailer refund to bank account | $0 | 5 to 10 business days |
| Third-party gift card buyer | 10 to 30% of card value | 3 to 7 business days |
| Payment app load and transfer | $0 to $2.50 per load | 1 to 3 business days |
The fastest and cheapest route is a direct bank transfer from a network card issuer. The slowest and most expensive is selling to a third-party service. If you have time and the retailer offers returns, a refund to your bank account costs nothing.
Frequently Asked Questions
Can I deposit a gift card at an ATM?
No. ATMs only accept cash and checks, not gift cards. You would need to convert the gift card to cash or a bank transfer first using one of the methods above, then deposit the cash or wait for the transfer to arrive in your account.
What if my gift card has a small balance left on it?
Most bank transfer services and third-party buyers will process small balances, though some have a minimum (often $5 or $10). Check the issuer's or service's terms before you try. If the balance is very small, you may be better off spending it at the retailer rather than paying a fee to convert it.
Do I need to report gift card transfers to the IRS?
No. A gift card is not income—it is a prepaid purchase. Converting it to cash or a bank transfer does not create a tax event. If someone gave you the gift card as a gift, there is no tax on you. If you received it as a work bonus or prize, your employer should have already reported it as income on your W-2 or 1099.
Can I use a gift card to pay off a credit card or loan?
Not directly. Credit card companies and loan servicers do not accept gift cards as payment. You would need to convert the gift card to cash or a bank transfer first, then use that money to pay the bill. This adds an extra step and may involve fees.
What if the gift card was fraudulently obtained or stolen?
Do not try to convert it. If you suspect a gift card is stolen or fraudulently obtained, contact the card issuer or retailer immediately. Using a stolen card can expose you to fraud liability, even if you did not know it was stolen. Report it to the issuer and let them handle it.