Can You Exchange a Gift Card for Cash?

Many people receive gift cards for retailers or services they don’t need or want. This often leads to unused cards, prompting the question of whether they can be converted into cash. Exploring avenues to convert these cards into a more flexible form of currency can provide a practical solution for managing unwanted gift balances.

Returning or Exchanging Directly with Retailers

Returning a gift card directly to the issuing retailer for cash is often not possible. Most retailers have policies stating gift cards are non-refundable and cannot be redeemed for cash, even with the original purchase receipt. If an item purchased with a gift card is returned, the refund is almost universally issued as store credit or a new gift card, rather than cash.

However, some jurisdictions have laws requiring businesses to offer cash redemption for small remaining balances on gift cards, typically below $10 or $5. Review the terms on the gift card or consult the retailer’s customer service for their precise policy.

Utilizing Third-Party Gift Card Marketplaces

For gift cards that cannot be returned to the retailer, online third-party marketplaces offer an alternative to convert them into cash. These platforms allow individuals to sell their unwanted gift cards, at a discount from their face value. The process involves entering the gift card’s details and balance, after which the platform provides an offer.

The percentage of the gift card’s value received can vary, typically ranging from 60% to 93% of the card’s face value. The payout depends on the popularity of the retailer, the demand for the specific gift card, and the platform’s fees. More popular and universally applicable gift cards, like those for major general merchandise retailers, tend to yield higher percentages.

Once an offer is accepted, these platforms facilitate the transaction, providing payment through various methods such as direct bank transfer, PayPal, or sometimes even cryptocurrency. Some marketplaces act as direct buyers, offering instant payouts, while others operate as listing sites where sellers set their own price and wait for a buyer. While physical gift card exchange kiosks were once more common in retail locations, many have become defunct, with online marketplaces now dominating this segment.

Other Options for Unused Gift Cards

When direct returns or third-party sales are not feasible or desired, several other options exist for managing unwanted gift cards. One straightforward approach is to regift the card to someone who would appreciate and use it. This method ensures the card’s value is utilized, even if not by the original recipient. It provides a convenient way to pass on the benefit to a friend or family member.

Another practical option is to use the gift card for everyday purchases at the specified retailer. Even if the store is not a primary shopping destination, the card can be applied towards essential items or goods that are regularly consumed. This approach ensures the full value of the card is realized, preventing it from expiring or being forgotten. It can also be used strategically to purchase items that can be resold if the goal is to indirectly convert the value into cash.

Donating unused gift cards to charitable organizations represents a beneficial alternative. Many non-profit organizations accept gift card donations, which can provide flexible funding for their operations or be distributed to individuals in need. For tax purposes, donating a gift card to a qualified 501(c)(3) organization can potentially be tax-deductible. The deduction is typically for the fair market value of the gift card, and it is the donor who purchased the card, not the recipient, who may claim it. It is important to obtain proper documentation from the charity for any donations, especially for amounts exceeding $250.