Can You Turn Gift Cards Into Money? Here’s How

Gift cards are a common gift, but many recipients have unwanted cards. They often seek to convert these into cash or cash equivalents. While direct exchange for cash is difficult, various methods exist to unlock their value. This guide explores approaches to transform gift card balances into usable money.

Understanding Your Gift Card

Before converting a gift card, understand its characteristics, as these influence available options. Gift cards fall into two main categories: open-loop and closed-loop. Open-loop cards, like Visa, Mastercard, or American Express, function as debit cards and are accepted wherever their network is. Closed-loop cards are retailer-specific, redeemable only at the issuing store or affiliated businesses, such as Amazon or Starbucks gift cards.

Determining the exact balance on a gift card is a necessary first step. Most gift cards provide instructions for balance inquiry on the back, typically through a toll-free customer service number or a website. Online balance checks usually require entering the card number and a security code or PIN.

It is also important to be aware of potential expiration dates or inactivity fees. Federal law, specifically the Credit Card Accountability Responsibility and Disclosure Act, stipulates that gift cards cannot expire for at least five years from the date of issuance or the last time funds were added. This law also limits inactivity fees, permitting them only if the card has been unused for at least 12 months, and only one such fee can be charged per calendar month. Any fees or expiration terms must be clearly disclosed on the card.

Selling Gift Cards Online

Selling unwanted gift cards online is a common way to convert their value into cash. Dedicated gift card marketplaces connect sellers with buyers seeking discounted cards. These platforms allow sellers to list the card’s brand, denomination, and desired selling price, usually at a discount. Discounts typically range from 60% to 92% of face value, depending on retailer demand.

Sellers provide the card number and PIN; the marketplace often verifies authenticity and balance. After a successful sale, payment is usually processed via PayPal or direct bank deposit. Broader online marketplaces, like eBay or Facebook Marketplace, also permit gift card sales, but may have specific policies or restrictions. When using general marketplaces, prioritize secure payment methods and be cautious of scams.

Pricing a gift card online means setting an attractive discount while retaining value. Higher demand for a store means the card sells closer to face value. Online marketplaces often charge a commission or fee. Sellers must factor this into their pricing strategy to ensure a satisfactory return.

Converting Gift Cards In-Person

For those preferring immediate or in-person transactions, several options exist to convert gift cards. Gift card exchange kiosks, often found in retail locations, offer a straightforward method for rapid conversion. These automated kiosks allow users to scan their gift card and receive an instant cash offer, typically a percentage less than the card’s face value.

For example, Coinstar Exchange kiosks might offer up to 85% of the gift card’s value, though rates vary by card type and generally require a minimum balance, such as $20. If the offer is accepted, the kiosk usually verifies identity and dispenses a voucher redeemable for cash at the store’s customer service desk.

Selling a gift card to friends or family often yields a higher return, as there are no intermediary fees. This method relies on personal networks and trust, offering a direct and efficient transfer of the card’s utility. The transaction is usually a simple exchange of the gift card for an agreed-upon cash amount.

Pawn shops or local resellers may purchase gift cards, but offers are often significantly lower than face value due to their business model. While these venues offer immediate cash, the reduced return makes them less desirable than online marketplaces or direct sales. Compare offers to maximize the amount received.

Creative Conversion Methods

Beyond direct selling, indirect strategies can transform gift card value into usable money or free up cash. Open-loop gift cards, like Visa or Mastercard, offer flexibility. These cards can pay various bills, including utilities or online subscriptions, freeing up cash from your bank account. While some credit card companies may not accept direct gift card payments, using an open-loop card for other regular expenses achieves a similar financial outcome. Registering the card online with a billing address is sometimes necessary.

Another method uses store-specific gift cards to buy essential goods or services. For example, a grocery store gift card for food or a gas station card for fuel directly reduces out-of-pocket expenses. This strategy converts the gift card’s value by preserving personal funds for other uses. It functions as a budgeting tool, covering a portion of regular spending.

A more involved approach is to buy popular or high-demand items with a gift card and then resell them for cash. This method is viable for valuable electronics, collectibles, or goods with a strong resale market. However, it requires additional effort, including researching market demand, managing sales platforms, and potential shipping costs. There’s also a risk the item may not sell for its full purchase price, or that the resale process is time-consuming, affecting the financial return.