You cannot deposit a Mastercard gift card directly into a bank account the way you would a check
A Mastercard gift card is a prepaid card, not a bank account or a check. Your bank has no way to read it or pull money from it. Instead, you move the money by spending it or by transferring it through a third party that can accept the card as payment. The most reliable methods are to use the card to buy a money order, transfer the balance to a PayPal or Square Cash account, or spend the balance down and deposit cash.
The path you choose depends on how much money is on the card, whether you need the funds quickly, and what fees you are willing to pay. Some routes are free; others cost a small percentage of the balance.
Key Takeaways
- A Mastercard gift card cannot be deposited like a check because it is a prepaid card, not a bank instrument your bank recognizes.
- Buying a money order at a grocery store or post office and depositing that money order is the most straightforward path and usually costs $1 to $2.
- PayPal, Square Cash, and similar services can accept your Mastercard gift card as a funding source, then you transfer the balance to your bank account.
- Spending the card down at stores and depositing the cash you receive as change is free but only works if the balance is small and you have time to spend it.
- Never give your gift card number to someone else or use it to pay a third party to "deposit" it for you — that is a common fraud setup.
Buying a money order with your gift card
This is the most straightforward method. Go to a grocery store, pharmacy, or post office that sells money orders. Tell the clerk you want to buy a money order and pay with your Mastercard gift card. The clerk will swipe or insert the card, you will sign the receipt, and you will receive a money order made out to yourself.
Then deposit that money order into your bank account the same way you would any other money order — at an ATM, through mobile deposit (if your bank offers it), or by walking into a branch. The money order is a paper instrument your bank recognizes and can process. The fee for the money order itself is usually $1 to $2, and there is no additional deposit fee.
This method works for any balance and is available almost everywhere. The only catch is that some stores have limits on the amount of a single money order — often $500 to $1,000 — so if your card has more than that, you will need to buy multiple money orders.
Using PayPal, Square Cash, or similar services
PayPal, Square Cash (now called Cash App), Google Pay, and Venmo all allow you to add a Mastercard gift card as a payment method. Once the card is linked, you can transfer the balance to your bank account in most cases, though the exact steps vary by service.
With PayPal: Link your Mastercard gift card in the wallet section, then transfer the balance to your linked bank account. PayPal does not charge a fee for this transfer if you use your bank account as the destination. The transfer usually takes one to three business days.
With Square Cash or Cash App: Link the card, then send the balance to yourself or a trusted contact, or transfer it directly to your linked bank account if the app allows it. Check the app's current rules, as these services change their features frequently. Some transfers are instant for a small fee; others are free but take one to three business days.
The advantage of this route is speed — transfers can post within hours. The disadvantage is that you need to set up an account if you do not already have one, and some services charge a fee if you want the money immediately rather than waiting.
Spending the card down and depositing cash
If the balance is small — under $50 — you can simply spend the card at stores and deposit any cash change you receive. This is free and requires no setup, but it only works if you have time to make purchases and if the remaining balance is small enough that you can spend it without waste.
For example, if the card has $30 on it, buy a $30 item and pay with the card. If the card has $45 and you buy a $50 item, the card will decline because there is not enough balance. You would then need to find a $45 purchase or split the transaction across two cards.
This method is impractical for larger balances or if you need the money quickly, but it costs nothing and works in a pinch.
What not to do
Do not attempt to withdraw cash directly from an ATM using the gift card. Mastercard gift cards are not linked to a PIN and cannot be used for cash withdrawals at ATMs in the way a debit card can. The ATM will decline the transaction.
Do not give your gift card number to a third party who claims they can "deposit" it for you or transfer it to your account. This is a common fraud setup. Legitimate money transfer services never ask for your card number over the phone or email. If someone is offering to move the money for a fee, they are likely stealing the card details.
Do not try to use the card to pay down a credit card balance or loan and expect that to move money into your bank account. That moves money out of the gift card and into a debt account, not into your bank.
Fees and timing by method
| Method | Typical Fee | Timing | Setup Required |
|---|---|---|---|
| Money order | $1–$2 | Same day (deposit) or 1–2 business days (processing) | None |
| PayPal transfer | None (to bank account) | 1–3 business days | PayPal account |
| Square Cash / Cash App | None (standard) or $0.50–$2 (instant) | 1–3 business days (standard) or minutes (instant) | Cash App account |
| Spend and deposit cash | None | Depends on your spending | None |
Frequently Asked Questions
Can I use the gift card to withdraw cash at a bank teller?
No. A Mastercard gift card is not a bank account, and tellers cannot process a withdrawal from it. You can use the card to buy a money order at a bank that sells them, but you cannot ask a teller to convert the card balance to cash.
What if the gift card has a small balance left over after I transfer most of it?
Small balances under $5 are often not worth the effort to transfer. You can spend the remainder at a store, or contact the card issuer to ask if they offer a cash-out option for low balances. Some issuers will not process a transfer for amounts below a minimum threshold.
Does my bank charge a fee to deposit a money order?
Most banks do not charge a fee to deposit a money order. However, some banks that offer free checking may charge a small fee if you deposit more than a certain number of items per month. Check your bank's deposit policy or ask a teller.
Can I transfer the gift card balance to someone else's bank account?
Not directly. The gift card can only be used to make purchases or transfers in the cardholder's own name. If you want to give the money to someone else, you would need to transfer it to your own bank account first, then send it to them through a separate transfer.
What happens if I lose the gift card before I transfer the balance?
Contact the card issuer immediately with your card number and the date of purchase. Mastercard gift cards are usually replaceable if reported lost, but the issuer may require proof of purchase. Act quickly, as some issuers have time limits on replacement requests.