You cannot transfer a gift card balance directly into a bank account
Gift cards and bank accounts are separate systems. A gift card is a prepaid balance locked to that card or retailer. Your bank account is a deposit account at a financial institution. There is no direct pipeline between them — you cannot log into your bank and pull the gift card balance over.
What you can do is spend the gift card to buy something, then deposit the proceeds, or convert the gift card to cash and deposit that cash. The method depends on what type of gift card you have and how much friction you are willing to accept.
Key Takeaways
- You cannot transfer a gift card balance directly to a bank account because they are separate payment systems with no connection.
- The fastest route is to use the gift card to buy something you would buy anyway, then return it for a refund to your bank account.
- You can also sell the gift card for cash on a resale platform, though you will receive less than the card's face value.
- Some gift cards can be converted to cash at the issuing retailer's customer service desk, but policies vary widely.
- Never give your gift card number to someone claiming they can transfer it to your bank account — that is a scam.
Buy something and return it for a refund to your bank account
This is the simplest method if the gift card is for a retailer where you shop anyway. Buy an item you actually need or want, then return it within the retailer's return window. When you return it, ask for the refund to go back to the original payment method — in this case, your gift card. The refund will land on the gift card.
Once the refund is on the gift card, you now have a different problem: you have cash value on a card again. But some retailers will let you use a gift card balance to buy a money order or prepaid card at their customer service desk. Money orders can be deposited at your bank. Prepaid cards can sometimes be linked to your bank account for transfers, though this varies by card.
A faster variation: buy a small item at the retailer, return it immediately, and ask the cashier if they can refund the balance as cash or a check instead of putting it back on the card. Policies differ by store and by location. Target, Walmart, and Best Buy sometimes do this; others do not. It costs nothing to ask.
Sell the gift card on a resale platform
Websites like Raise, CardCash, and Decluttr buy unused gift cards at a discount. You list the card, they verify the balance, and they send you cash via bank transfer, PayPal, or check. The catch is the discount: you will typically receive 70 to 95 percent of the card's face value, depending on the retailer and current demand.
The process takes a few days to a week. You photograph the back of the card (or provide the code), the platform confirms the balance is real, and then they send payment to your chosen method. If you choose bank transfer, the money lands in your account directly. If you choose PayPal or check, you will need an extra step to move it to your bank.
This method works best for gift cards you will not use — the discount is the price of converting an illiquid asset to cash. If the card is for a store you shop at regularly, the return-and-refund method usually costs you nothing.
Ask the retailer to convert the card to cash at the register
Some retailers will cash out a gift card balance directly. This is not a universal policy; it depends on the store's rules and sometimes on the manager on duty. Costco, for example, will refund a gift card as cash if you ask. Many grocery stores will do the same. Big-box retailers like Target and Walmart vary by location.
Call the customer service number on the back of the card or visit a store location and ask whether they cash out gift cards. If they do, bring the card in person — you will need to show ID, and the transaction happens at the register or customer service desk. The cash goes into your hand, and you can deposit it at your bank immediately.
This method is free and instant, but it only works if the retailer offers it. Do not assume they do. Ask first.
Use a third-party app or service (with caution)
Apps like PayPal, Square Cash, and some banking apps let you photograph a gift card to add its balance to your account. However, this does not actually transfer the gift card balance — it simply stores the card number in the app so you can spend from it there. The money is still on the gift card; you are just using a different interface to access it.
This is useful if you want to spend the gift card balance online or in stores without carrying the physical card. It is not useful if your goal is to move the money into your bank account itself. The balance stays on the gift card until you spend it down.
Be wary of services that claim to instantly transfer gift card balances to your bank account for a fee. These are almost always scams. Legitimate gift card resale sites take a percentage of the sale price, not an upfront fee. If someone asks you to pay money to unlock a transfer, stop and do not proceed.
What does not work: direct transfers and wire services
You cannot wire a gift card balance to your bank account. You cannot call your bank and ask them to pull money from a gift card. You cannot use a gift card as a source for a bank transfer. Gift cards are not connected to the banking system in that way.
Anyone who tells you they can transfer a gift card balance to your bank account for a small fee is running a scam. This includes people on social media, in text messages, or in emails. The only legitimate ways to convert a gift card to bank account money are the ones listed above: resale, return-and-refund, or asking the retailer directly.
Frequently Asked Questions
Can I use a gift card to open a bank account?
No. Banks require an initial deposit from a real payment method — a check, a bank transfer, or cash. A gift card cannot be used to fund a new account. You would need to convert the gift card to cash or a check first, then deposit that.
What if the gift card has a small balance left?
Small balances are often not worth the effort to resell. If the card has less than five dollars, your best option is to spend it down at the retailer or donate the card to someone who will use it. Resale sites may not accept very low balances, and the discount will eat most of what remains.
Can I deposit a gift card directly at an ATM?
No. ATMs accept cash, checks, and bank cards only. A gift card has no connection to the banking system and cannot be deposited. You must convert it to cash or check first.
Do I pay taxes on gift card resale money?
Generally, no. You are selling an asset you already own at a loss (the discount). This is not taxable income. However, if you are reselling gift cards as a business, that income may be taxable. For personal use, one or two resales are not reported.
What if I lost the gift card?
Contact the retailer or the card issuer immediately. Many gift cards can be replaced if you have the original receipt or can prove the balance. Some retailers will issue a new card with the same balance. Others will not. Act quickly — the sooner you report it, the better your chances of recovery.