How Can I Get Cash From a Gift Card?

Gift cards serve as a convenient payment method, often received as presents or rewards. While designed for spending at a specific retailer, converting their value into cash or a cash equivalent may be desirable. Several avenues exist to unlock the monetary worth of these cards, offering financial flexibility when direct spending at the designated merchant is not preferred.

Selling Gift Cards Through Online Marketplaces

Converting gift cards into cash often begins with online marketplaces specializing in their resale. Before listing a card, gather essential information: the card’s merchant, its current balance, and the card number and PIN, which are usually found on the back of physical cards or within digital card details. Verifying the balance directly with the merchant, either online or by phone, is an important step for accuracy.

Reputable online gift card marketplaces include platforms like CardCash, Raise, or Gift Card Outlets. These platforms facilitate transactions between sellers and buyers. Some sites offer an immediate quote and purchase the card directly, while others allow sellers to list cards and set their own price. Most marketplaces charge a commission or offer a payout rate that is a percentage of the card’s face value, commonly ranging from 70% to 90%, depending on the card’s popularity and demand.

To initiate selling, create an account on the chosen platform and complete identity verification steps, such as confirming an email address or phone number. Once set up, list the gift card by inputting the merchant name, card balance, and the card number and PIN. If an immediate offer is provided, accept it, and the platform will provide instructions for transferring card details. For peer-to-peer marketplaces, the card remains listed until a buyer makes a purchase.

Upon successful sale or offer acceptance, payment is disbursed via methods like direct bank deposit, PayPal, or store credit. Processing time varies, from hours to several business days. Some platforms may hold funds briefly to ensure the gift card’s validity and successful transfer.

Using Gift Card Exchange Kiosks and Local Options

For immediate cash conversion, gift card exchange kiosks offer a direct option. These self-service machines are often found in grocery stores, retail establishments, and malls. Individuals can locate nearby kiosks by searching online for “gift card exchange kiosks” or looking for prominent brands like Coinstar. Kiosks provide instant cash offers, typically 60% to 85% of the gift card’s value, depending on demand.

To use a kiosk, insert or swipe the gift card. The machine reads the balance and brand, then displays a cash payout offer. If accepted, the kiosk dispenses a voucher or receipt to be redeemed for cash at a customer service desk or cashier. Some advanced kiosks dispense cash directly.

Local selling offers another direct avenue for converting gift cards, such as to friends, family, or through community groups. For safety, meet in a public place. Before exchange, both parties should verify the gift card’s balance, either by calling the merchant or checking online, to prevent misunderstandings.

The buyer provides the agreed cash amount for the physical gift card. Without an intermediary, the seller retains a larger portion of the card’s value, as no commissions or fees are deducted. However, finding a willing buyer and agreeing on a fair price may take more time and effort.

Converting Gift Card Value Indirectly

Gift cards can indirectly free up cash by purchasing popular items for resale. This strategy works best with cards from major retailers carrying desired products like electronics or video games. After acquiring items, sell them through online classifieds, auction sites, or local consignment shops.

Profit depends on the resale value of purchased items, which fluctuates with market demand and condition. While potentially yielding higher returns than direct selling, this approach involves more effort and risks, such as difficulty finding a buyer or depreciation. Careful selection of items with strong resale potential is important.

Another indirect approach is using the gift card for essential expenses. If the card is for a merchant selling necessities like groceries or gasoline, using it frees up cash that would otherwise be spent. For example, a $100 grocery store gift card used for weekly food purchases effectively saves $100 in out-of-pocket cash for other needs or savings. This enhances personal liquidity without direct cash conversion.

Some state laws may mandate merchants redeem gift cards for cash if the remaining balance falls below a small threshold, typically $5 or $10. This depends on the specific regulations of the state where the gift card was purchased or redeemed, and the merchant’s policies. Research your state’s consumer protection laws regarding gift card redemption.