You cannot deposit a gift card directly into a bank account, but you have several ways to convert it to cash or use it to fund your account
A gift card is not money—it is a stored balance with a specific retailer or payment network. Your bank will not accept it as a deposit because there is no way for the bank to verify the balance or transfer the funds. However, you can convert most gift cards to cash or move the value into your bank account through a few concrete routes: selling the card to a reseller, using a third-party service that converts cards to cash, or spending the balance and depositing your own money instead.
The method that works depends on the type of gift card you have, how quickly you need the money, and how much of the card's value you are willing to lose. Some routes are faster but cost more. Others take longer but preserve more of the balance.
Key Takeaways
- Gift cards cannot be deposited directly into a bank account because they are not legal tender and banks cannot verify the balance.
- You can sell a gift card on resale platforms like CardCash, Raise, or Decluttr, though you will typically receive 70 to 90 percent of the card's face value.
- Some payment apps like PayPal and Square Cash let you add certain gift cards and transfer the balance to your bank account, though the list of supported cards is limited.
- You can spend the gift card at the retailer and deposit your own cash or use your debit card to replenish your bank account instead.
- Timing varies: resale platforms take 1 to 5 business days to pay you, while app-based transfers can be instant.
Selling your gift card on a resale platform
The most common way to convert a gift card to cash is to sell it on a dedicated resale marketplace. Platforms like CardCash, Raise, and Decluttr buy unused gift cards from individuals and resell them to other shoppers. You list the card, the buyer purchases it, and the platform pays you via bank transfer, PayPal, or check.
The catch is that you will not receive the full face value. Most platforms pay between 70 and 90 percent of what the card is worth, depending on the retailer and current demand. A $100 Amazon gift card might sell for $85 to $92. Popular retailers like Amazon, Target, and Walmart typically command higher percentages than niche or regional stores. The platform takes a cut, and the discount reflects the risk that the buyer takes on.
The process is straightforward: you create an account, enter the card's details (usually the card number and PIN), set a price, and wait for a buyer. Once sold, the platform verifies the card balance and transfers the money to you. This typically takes 1 to 5 business days depending on the platform and your payment method. If you choose direct bank transfer, it is usually faster than a check.
Using payment apps to convert gift cards
Some digital payment services allow you to add a gift card as a payment method and then transfer the balance to your linked bank account. PayPal and Square Cash both support this for certain cards, though the list is limited and changes over time. You add the gift card to your account, and the app treats it like a prepaid balance that you can send to your bank.
The advantage is speed—transfers can post within hours or even minutes. The disadvantage is that not all gift cards are supported. Visa and Mastercard gift cards work on most platforms, but store-specific cards (like a Target or Best Buy card) usually do not. Before you try this route, check the app's help section to see whether your card is on the supported list.
The process varies by app. On PayPal, you add the card under "Wallet," then use "Transfer Money" to send the balance to your bank account. On Square Cash, you link the card and can send money directly to your bank. Neither service charges a fee for this conversion, but some gift cards may have restrictions on transfers—read the card's terms before you start.
Spending the card and depositing cash instead
The simplest option, if you do not need the money immediately, is to use the gift card to buy something you would have bought anyway, then deposit the cash or card funds you would have spent into your bank account instead. This preserves 100 percent of the card's value and avoids any resale fees or platform cuts.
For example, if you have a $50 grocery gift card and you were planning to spend $50 on groceries this week anyway, use the gift card and deposit $50 of your own money into your bank account. You end up with the same groceries and the same bank balance, but you have moved the gift card value into your account indirectly.
This works best when the card is for a store you shop at regularly and the balance is not urgent. It does not work if you need cash immediately or if the card is for a store you do not use.
Understanding why banks will not accept gift cards
Banks require deposits to be either cash, checks, or electronic transfers from another financial institution. A gift card is none of these. It is a proprietary stored-value product issued by a retailer or payment network, not a bank. The bank has no way to verify that the card actually contains the balance you claim, no way to contact the issuer to confirm the funds, and no legal mechanism to accept it as a deposit.
Additionally, gift cards are not FDIC-insured the way bank deposits are. If you could deposit a gift card into your account, the bank would be taking on the risk that the card issuer goes out of business or that the balance is fraudulent. Banks avoid this by refusing gift cards entirely.
Comparing the routes by speed and cost
| Method | Time to receive money | Percentage of face value you keep | Best for |
|---|---|---|---|
| Resale platform (CardCash, Raise, Decluttr) | 1 to 5 business days | 70 to 90 percent | Cards you do not plan to use; need cash but not urgently |
| Payment app (PayPal, Square Cash) | Minutes to hours | 100 percent (if supported) | Visa or Mastercard gift cards; need cash quickly |
| Spend and deposit your own money | Same day (if you deposit immediately) | 100 percent | Cards for stores you use regularly; no rush for cash |
What to watch out for when selling gift cards
If you use a resale platform, verify that the card has not been used before you list it. Some platforms will reject cards with partial balances or cards that have been activated but not spent. Check the card's balance on the retailer's website first—most retailers have a balance checker on their site or app.
Be cautious of platforms that ask you to mail the physical card. Reputable services like CardCash and Raise do not require this; they ask for the card number and PIN instead. If a platform insists on receiving the card by mail, you lose control of it and cannot verify that the buyer received it or that the platform actually sold it.
Also check whether the platform charges a fee to withdraw your money. Most do not, but some charge a small percentage if you choose check payment instead of bank transfer. Direct bank transfer is almost always free.
Frequently Asked Questions
Can I deposit a Visa or Mastercard gift card directly into my bank account?
No, not directly. However, you can add a Visa or Mastercard gift card to a payment app like PayPal or Square Cash and transfer the balance to your bank account. This works because those apps treat the card as a payment method, not as a deposit. Store-specific gift cards (Target, Best Buy, etc.) cannot be transferred this way.
How much money will I lose if I sell my gift card?
Most resale platforms pay 70 to 90 percent of the card's face value. The exact percentage depends on the retailer and current demand. Popular retailers like Amazon and Walmart typically pay higher percentages than smaller or regional stores. You can compare offers across platforms before you sell.
What happens if I sell a gift card and the buyer says it does not work?
Reputable platforms like CardCash and Raise verify the card balance before they pay you. If the card does not work, the platform catches it during verification and does not complete the sale. You keep the card and can try selling it elsewhere. This is why you should only use established resale platforms with buyer protection policies.
Can I use a gift card to pay off a credit card or loan?
No. 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. Using a resale platform or payment app to move the balance to your bank account, then paying from your account, is the standard route.
Is it safe to sell my gift card online?
Yes, if you use an established platform. CardCash, Raise, and Decluttr are well-known services with buyer protection and verification systems. Never sell a gift card through a personal ad or to someone you do not know. Always use a platform that verifies the card before paying you and that protects you if the buyer disputes the transaction.