How to Move Money From a Gift Card to Your Bank Account

Direct transfer from gift card to bank account usually isn't possible

Most gift cards cannot transfer money directly into a bank account. The card issuer — whether Visa, Mastercard, a retailer, or a restaurant — does not have a built-in feature to send funds to your bank. What you can do instead depends on what type of gift card you have and what the issuer allows.

The most common workaround is to spend the gift card balance on something you would buy anyway, then use the money you would have spent on that purchase for something else. But there are a few other routes that work for certain cards, and they are worth knowing about.

Key Takeaways

• Visa and Mastercard gift cards can often be transferred to a bank account through a peer-to-peer payment app or by setting up the card as a payment method in your bank's bill pay system.
• Retailer-specific gift cards (Target, Amazon, Walmart) cannot transfer to a bank account directly, but you can use them to buy items and resell them, or use them to pay bills if the retailer accepts them.
• Some prepaid card companies allow you to transfer remaining balances to a linked bank account when you close the account, though this varies by card type.
• Cashing out a gift card through a third-party service usually costs a fee and pays you less than the card's face value.

Visa and Mastercard gift cards: using payment apps and bill pay

If your gift card is a Visa or Mastercard gift card (not a store-specific card), you have the most options. These cards work like debit cards and can be registered with your bank or used in payment apps.

One method is to add the gift card to a peer-to-peer payment app like Venmo, PayPal, or Cash App. Link the gift card as your payment method, then send the balance to a friend or family member. Ask them to send the money back to your bank account through the same app. This works because the app treats the gift card like any other debit card. The downside is that you are moving money in a circle, and both you and the other person may see transaction fees depending on the app.

Another method is to set up the gift card in your bank's bill pay system. Log into your bank's website or app, go to bill pay, and add the gift card as a payment method. Then pay a bill you owe — your electric bill, credit card, or loan payment — using the gift card. The money leaves the gift card and goes to your biller. This does not put money in your bank account, but it frees up money you would have spent on that bill, which has the same effect.

Store gift cards: spending, reselling, or bill payment

Retailer-specific gift cards (Target, Walmart, Amazon, Best Buy, Starbucks) cannot be transferred to a bank account at all. The issuer does not allow it. But you can convert them to cash or bank funds through other means.

The most straightforward way is to spend the card on items you would buy anyway, then use the money you save for whatever you need. If you have a $50 Target gift card and you were going to buy groceries there anyway, use the card and put the $50 you would have spent into your bank account instead.

If you need cash or a direct bank transfer, you can resell the card. Websites like CardCash, Raise, and Decluttr buy unused gift cards for less than face value — typically 70 to 92 percent of what the card is worth. You list the card, they verify the balance, and they send you payment via bank transfer or PayPal. The trade-off is that you lose 8 to 30 percent of the card's value as a fee.

Some store gift cards can also be used to pay bills if the retailer accepts bill payment. Amazon, for example, lets you pay some utility bills directly through their platform. Check the retailer's website to see if this option exists for your card.

Prepaid cards: closing the account and transferring the balance

If your gift card is actually a reloadable prepaid card (like a NetSpend, Green Dot, or Chime card), the rules are different. These cards are designed to hold money over time, and many allow you to transfer the remaining balance to a bank account when you close the account.

Log into your prepaid card's website or app and look for account closure or balance transfer options. Some cards let you request a check for the remaining balance, transfer it to a linked bank account, or move it to another prepaid card. The process varies by card issuer, so contact their customer service to confirm what they allow. Some prepaid cards charge a closure fee, which will be deducted from your balance.

Third-party cash-out services: the most expensive option

Several websites and apps offer to convert gift cards to cash, but they charge fees that make this the least attractive option. Services like Cardpool and Giftcard Granny buy gift cards at a discount, then pay you via bank transfer or check.

The catch is that you will receive significantly less than the card's face value. A $100 gift card might sell for $75 to $90, depending on the retailer and current demand. The service takes a cut, and so does the reseller who buys from them. Use this option only if you have a card you cannot spend and no other way to convert it.

What to avoid when moving gift card money

Do not use a gift card to withdraw cash from an ATM unless the card specifically allows it. Most retail gift cards will decline at an ATM. Visa and Mastercard gift cards sometimes allow ATM withdrawals, but the issuer usually charges a fee of $2 to $5 per withdrawal.

Avoid services that ask you to provide the gift card number and PIN upfront before paying you. Legitimate resellers verify the balance themselves. If a service asks you to send the card details first, it is likely a scam.

Do not assume a gift card can be transferred just because it has a Visa or Mastercard logo. Some store-branded Visa cards (like Target's Visa gift card) are treated as store cards and have the same restrictions as regular store gift cards.

Frequently Asked Questions

Can I transfer a Visa gift card balance directly to my bank account?

Not directly through the card issuer, but you can use the card to pay bills through your bank's bill pay system, or add it to a payment app and send money to someone who sends it back to your bank account. Both methods move the money out of the gift card, though the second method may involve fees.

What is the best way to convert an Amazon gift card to cash?

Amazon gift cards cannot be transferred to a bank account. Your best options are to spend the card on items you need, or resell it through CardCash or Raise for 70 to 90 percent of its value. Reselling costs you a fee but gives you cash or a bank transfer.

Do I lose money when I resell a gift card?

Yes. Resale sites typically pay 70 to 92 percent of the card's face value. A $100 card might sell for $75 to $90. The discount depends on the retailer and how much demand there is for that card at the time you sell.

Can I use a gift card to pay my credit card bill?

Yes, if your credit card issuer's bill pay system accepts it as a payment method. Add the gift card as a debit card in your bank's bill pay, then use it to pay your credit card bill. The money leaves the gift card and goes to your credit card account.

What happens if my gift card has a small balance left on it?

You can still resell it, though you will receive less money. Some resale sites have minimum balance requirements, so check before listing. Alternatively, spend the remaining balance at the retailer, or combine it with another payment method to make a purchase.