Can You Return a Gift Card for Cash?

Receiving gift cards is common, but they are often for retailers or services that don’t align with personal preferences. Many seek to convert these unwanted gift cards into cash for greater financial flexibility. While direct cash exchange for face value is generally uncommon, several established avenues exist to convert unused gift cards into a more liquid form of currency.

Understanding Your Options

Most retailers do not provide cash back for gift cards, treating them as store credit. A gift card typically cannot be returned for its original purchase price in cash. Exceptions arise when merchandise bought with a gift card is returned; in such cases, the refund is usually issued as store credit.

Despite general retailer policies, some state laws mandate cash redemption for small remaining balances on gift cards. For instance, a balance below a certain threshold, often around $5 or $10, may be redeemable for cash upon request. These regulations are not universal and apply only to residual amounts, not the full value of a new gift card. While a full cash refund for an unwanted gift card is rare, cashing out a small remaining balance depends on local consumer protection laws.

Converting Gift Cards to Cash

Several methods exist for converting gift cards into cash or more usable funds, each with varying levels of return and convenience. Online gift card marketplaces provide a structured environment for this process. Platforms such as CardCash, Raise, and GiftCash allow users to list unwanted gift cards for sale to interested buyers.

Sellers typically receive an offer for a percentage of the card’s face value, with payments often disbursed via check, ACH direct deposit, or PayPal within a few business days. The discount varies based on demand, but sellers might expect to receive between 70% to 92% of the card’s value. These platforms act as intermediaries, verifying card balances and ensuring secure transactions for both parties.

Physical gift card exchange kiosks, such as those formerly operated by Coinstar Exchange, once offered an immediate cash-out option, providing instant cash offers. These kiosks typically offered a higher discount rate than online platforms. Coinstar discontinued its cash-for-gift-card service.

Selling gift cards directly to friends or family members often yields the highest percentage of the card’s face value. This method bypasses fees associated with third-party platforms and relies on finding a willing buyer who needs the specific gift card.

Important Considerations for Exchange

When exchanging a gift card for cash, the amount received will almost invariably be less than the card’s original face value. This reduction accounts for fees charged by exchange platforms and their operational profit margins. Most online marketplaces, for example, charge a commission on successful sales, which can range from a small percentage to as much as 15%. This discount is a necessary trade-off for the convenience of converting an illiquid asset into spendable cash.

Security is paramount when engaging in gift card exchanges. Individuals should exercise caution and only use reputable, established platforms to avoid potential scams. Unofficial or suspicious methods, such as direct transactions with unverified individuals on social media, carry significant risks of fraud. Always verify the legitimacy of a platform and avoid sharing sensitive gift card numbers or PINs prematurely.

The type of gift card can also influence its exchange value and ease of sale. Some gift cards, such as those for niche stores, promotional cards, or cards with specific usage restrictions or expiration dates, may be harder to sell or command a lower percentage of their face value. General-purpose cards, like those from major retailers or widely recognized brands, tend to have higher demand and better resale rates. Before initiating any exchange, it is advisable to verify the exact balance of the gift card to ensure accurate listing and avoid disputes.