Can You Get Cash From a Gift Card? Here Are Your Options

Gift cards are prepaid stored-value cards, often issued by retailers or banks, used for purchases within a specific store or related businesses. They are a popular gift choice, relieving the donor from selecting a physical item, and are frequently used as rewards or promotional tools. Individuals often seek to convert gift cards into cash, especially when the card is for a store they do not frequent or if a small balance remains. This desire for liquid funds drives the exploration of various conversion methods.

Direct Redemption Options

Directly redeeming gift cards for cash from the issuing merchant is often not possible, as most gift cards explicitly state they are not redeemable for cash. This policy helps retailers ensure funds are spent within their ecosystem. However, direct cash redemption might be an option in specific, limited scenarios, primarily due to state regulations or the card type.

Some states have laws requiring merchants to offer cash redemption for gift cards with small remaining balances. For instance, certain states mandate cash back for balances under $10, while others set the threshold at $5 or even $1. These laws prevent consumers from losing small balances. To utilize this, a consumer presents the gift card to the merchant and requests the remaining balance in cash.

The type of gift card also influences direct redemption. Closed-loop gift cards, issued by a specific retailer, can only be used at that store or chain. These cards generally adhere strictly to the merchant’s no-cash-redemption policy, except where state laws dictate otherwise for small balances. In contrast, open-loop gift cards are issued by banks or credit card companies, like Visa or Mastercard, and function more like prepaid debit cards, accepted wherever the card network is supported. While open-loop cards offer greater flexibility, they typically have cash advance limitations and may come with activation or transaction fees, making direct cash withdrawal from an ATM less straightforward and potentially costly.

Selling Your Gift Card Online

Selling gift cards online is an effective method for converting their value into cash. This approach uses dedicated platforms and marketplaces connecting sellers with buyers seeking discounted gift cards. The process involves several steps, from preparing the card for sale to receiving payment.

Before listing a gift card, verify its remaining balance for accuracy and transparency. Many online platforms offer tools or guidance for checking balances. Once confirmed, sellers choose from various online platforms, including dedicated gift card exchange websites or broader marketplaces. These platforms facilitate the transaction, offering a structured environment for listing and selling.

Listing the card involves entering details like the brand, face value, and desired selling price. Sellers usually receive less than the face value, with payout percentages varying based on brand popularity, demand, and platform fees. Popular brands like Amazon, Walmart, or major credit card networks generally command higher resale rates, often 70% to 93% of the card’s value. Less popular or niche gift cards may sell for a lower percentage. Factors like the card’s condition, physical or digital format, and even the time of year can also influence its resale value.

After a buyer purchases the card, the seller receives payment through methods offered by the platform, such as direct bank transfer, PayPal, or other digital options. The final step involves securely transferring the gift card details, like the card number and PIN, to the buyer. Reputable platforms prioritize secure transactions and provide clear instructions for this transfer.

Other Conversion Methods

Beyond direct redemption and online sales, other methods exist for converting gift card value, though they often come with specific limitations or are less direct. One strategy involves purchasing an item with the gift card and then attempting to return it for a cash refund. However, store policies vary widely; many retailers only offer store credit or a new gift card for returns made with a gift card, rather than cash. This prevents individuals from circumventing the gift card’s original purpose.

Selling a gift card directly to friends, family, or local acquaintances is another option. This peer-to-peer approach bypasses platform fees and allows for direct negotiation of the selling price, potentially resulting in a higher return than online exchanges. However, it requires a trusted network and carries the risk of the buyer not fulfilling their agreement, as there is no intermediary to ensure the transaction. Meeting in a safe, public location is advisable for such exchanges.

In some limited instances, certain gift cards, particularly open-loop cards backed by major payment networks, can be used for indirect cash equivalents. These cards might pay certain bills or link to payment apps, indirectly freeing up cash otherwise used for those expenses. While this does not provide direct cash, it can improve personal cash flow. However, this functionality is not universal, and fees may apply.

Pawn shops or cash advance services are generally not viable options for converting gift cards into cash. These establishments typically deal with items with tangible collateral value, which gift cards lack. While some pawn shops might purchase gift cards, they often offer a significantly reduced percentage of the card’s face value, sometimes as low as 40-60%, due to inherent risks and administrative costs.