Can You Get Cash for Gift Cards? The Process Explained

It is generally possible to convert gift cards into cash. This article explains how to determine a gift card’s eligibility and value, outlines various conversion methods, and details the steps involved in completing such a transaction.

Understanding Gift Card Eligibility and Value for Cash Conversion

Before attempting to convert a gift card into cash, it is important to understand which types of cards are typically eligible and the factors that influence their cash value. General-purpose gift cards, such as those issued by major credit card networks, are often more desirable for conversion due to their widespread acceptance. Popular retail or restaurant gift cards from well-known brands also tend to have higher liquidity in the secondary market. Less common or store-specific gift cards may be more challenging to convert and often yield a lower percentage of their face value.

The cash amount received for a gift card almost always falls below its face value. This discount accounts for the buyer’s profit margin, processing fees, and the inherent illiquidity of gift cards compared to direct cash. The actual percentage can fluctuate based on the card’s brand, its current demand, and the chosen conversion method, typically ranging from 60% to 90% of the card’s original value.

Knowing the precise balance on the gift card is a foundational step, which can usually be found on the back of the card, on the retailer’s website, or by calling the customer service number provided on the card.

Confirming the presence of a Personal Identification Number (PIN) on the gift card is important, as many online conversion platforms require it for verification. A PIN is often located under a scratch-off area on physical cards or provided digitally for e-gift cards. Knowing if the card is physical or electronic (e-gift card) is also necessary, as some services have different processing methods.

Avenues for Converting Gift Cards to Cash

Several avenues exist for converting gift cards into cash, each offering varying levels of convenience and potential payout rates. Online gift card marketplaces serve as common platforms where individuals can sell unwanted gift cards to interested buyers. These dedicated websites typically facilitate the transaction by verifying the card’s balance and then issuing payment once a buyer is secured, often within a few business days. The payout rates on these platforms are generally competitive, reflecting the card’s market demand.

Automated gift card exchange kiosks, often found in grocery stores or retail centers, provide an immediate but typically lower-value option for conversion. Users can scan their gift card at these machines, receive an instant cash offer, and if accepted, receive cash on the spot. While offering speed and convenience, the payout percentage from kiosks is usually lower than that offered by online marketplaces due to the operational costs and the immediate nature of the transaction.

Direct sales to friends, family, or through local classifieds offer another method for converting gift cards. This approach can potentially yield a higher percentage of the card’s value, as it eliminates intermediary fees. However, it requires more personal effort in finding a buyer and can involve a greater risk if not handled with caution. The transaction terms, including the agreed-upon discount, are negotiated directly between the seller and the buyer in this scenario.

Local resellers, such as pawn shops, may also offer to purchase gift cards. This option typically provides the lowest payout rates compared to other methods. These businesses often purchase gift cards at a steep discount to ensure profitability given their operational model and the risk associated with reselling varied merchandise.

The Step-by-Step Process of Cashing Out Your Gift Card

Once the gift card’s eligibility and value have been determined, and a preferred conversion avenue has been selected, the process of cashing out can begin. The initial step involves navigating to the chosen platform, whether it is an online marketplace, a kiosk, or a direct selling channel. For online services, this often includes creating a user account, which typically requires providing basic personal information and contact details. This account will serve as the hub for managing the transaction and receiving payment.

The next action involves accurately inputting the gift card details, which were previously gathered and verified. This typically includes the full gift card number, the associated PIN, and the precise balance on the card. The platform will then process this information to generate a cash offer based on its current rates and the card’s specifics. Reviewing this offer carefully is important before proceeding, as it will state the exact cash amount to be received for the gift card.

Upon accepting the cash offer, the user will then select a preferred payment method. Common options include direct deposit to a bank account, transfer to a digital payment service, or receiving a physical check by mail. The processing time for payment can vary significantly, often ranging from one to five business days for electronic transfers, while checks may take longer to arrive and clear. The chosen platform will typically provide an estimated timeline for fund disbursement.

The final stage involves the platform verifying the gift card’s balance and validity, which may include a brief holding period to ensure the card is active and has the stated value. Once verification is complete, the payment is initiated according to the chosen method. Monitoring the transaction status through the platform’s dashboard or communication channels is recommended until the funds are successfully received.