Can You Send Gift Card Money to a Bank Account?

Directly sending gift card money to a bank account is generally not possible. However, indirect methods exist to convert gift card value into funds that can be deposited. The specific approach depends on the type of gift card. Understanding these methods helps you access your gift card’s value in a more flexible format.

Understanding Different Gift Card Types

Gift cards primarily come in two distinct categories: open-loop and closed-loop. Open-loop gift cards, like those branded with Visa, Mastercard, American Express, or Discover, function similarly to prepaid debit cards. These cards are widely accepted at any merchant that processes payments through their associated network, providing broad flexibility for spending. Their versatility stems from being backed by major payment networks, allowing them to be used for a wide range of purchases.

Conversely, closed-loop gift cards are issued by specific retailers or a limited group of affiliated merchants. For example, a gift card from a coffee shop or a department store can only be redeemed at that particular brand’s locations or their online platforms. These cards are significantly more restrictive in their use compared to open-loop cards. They typically cannot be directly converted to cash or transferred to a bank account, making open-loop cards a more adaptable option for accessing funds.

Strategies for Accessing Gift Card Funds

Converting gift card value into a transferable form often involves preparatory steps, transforming the balance into an intermediary state. For open-loop gift cards, which function like traditional debit cards, several options exist to move funds. One common method is adding the open-loop card to a peer-to-peer payment application, such as PayPal, Venmo, or Cash App. Users navigate to the “Wallet” or “Payment Methods” section within the app and link the gift card by inputting its details, including the card number, expiration date, and security code. Once linked, the gift card can be used to send money within the app’s ecosystem, effectively moving funds into the app’s balance.

Some open-loop gift cards with a Personal Identification Number (PIN) and affiliation with a major ATM network may allow cash withdrawals at ATMs. Always check the card’s terms and conditions, as issuers may prohibit withdrawals or charge fees. Open-loop cards can also be used for online purchases, similar to a regular debit or credit card.

For closed-loop gift cards, options are more limited. A primary strategy is selling the card on specialized gift card exchange platforms or websites. These platforms connect sellers with buyers, though it is common to receive less than the card’s face value, typically ranging from 70% to 92%, depending on the retailer and demand. The process generally involves listing the card, verifying its balance, and then receiving payment through various methods offered by the platform. Another method is using the gift card to purchase items that can then be resold for cash, though this may not yield full value.

Transferring Funds to Your Bank Account

Once gift card funds are in an accessible intermediary form, the final step is transferring them to a bank account. For money held within payment app balances (e.g., PayPal, Venmo, Cash App), the process is straightforward. Users initiate a transfer directly from their app balance to a linked bank account. Most apps offer standard transfers, which are free and take one to three business days, and instant transfers, which arrive within 30 minutes but incur a fee (0.5% to 1.75% of the amount). To set this up, users must link their bank account to the payment app by providing routing and account numbers.

If funds were obtained through a gift card exchange platform, payout methods vary by platform but commonly include direct deposits (ACH) to a bank account or transfers to other digital payment services like PayPal. Sellers typically provide their bank details to the platform to facilitate direct deposit once the transaction is complete and the gift card’s value is verified. Receiving these funds can take a few days to a week, depending on the platform’s policies. Cash obtained from ATM withdrawals or cash-back transactions can be deposited at a bank branch, via an ATM that accepts deposits, or through mobile check deposit if a check was issued. When depositing cash at a bank, your account number and identification are generally required.