How Can I Get Money Off a Gift Card?

Gift cards are a popular form of present. However, a gift card for a store or service you do not frequent can feel less practical than cash or other spending options. Many individuals seek ways to convert these gift cards into a more versatile form of value. This process involves various methods, from direct conversion to leveraging the card’s value to free up personal funds for other needs.

Selling Your Gift Card for Cash

Selling gift cards for cash involves online marketplaces that specialize in gift card resale. Before listing a card for sale, gather essential card information. This includes the current balance, the full card number, and the Personal Identification Number (PIN), if one is present, often found by scratching a silver panel. Verify the balance via the retailer’s website, a toll-free number, or a mobile app.

Gift card marketplaces buy cards at a discount and resell them. The amount you receive for your gift card can vary widely. Factors influencing this percentage include the demand for the specific retailer, the card’s remaining balance, and the platform’s policies, with payouts commonly ranging from 70% to 90% of the card’s face value. Platforms such as CardCash, Raise, and Gift Card Granny are well-known in this space. Some platforms provide instant offers, while others allow sellers to set their own price, which might take longer to sell but could yield a higher return.

Choosing a reputable platform ensures secure transactions and timely payments. Research platforms by reviewing security, payment methods, and customer feedback. The selling process involves creating an account and entering gift card details: verified balance, card number, and PIN.

After submitting the card information, the platform will typically provide an offer. After acceptance, the platform verifies the card before processing payment. Payment methods can include direct bank transfers, PayPal, or a physical check. Processing times vary from instant to several business days.

Using Gift Cards to Free Up Your Cash

An indirect but effective way to extract financial value from gift cards is to strategically use them for everyday expenses. This approach allows you to redirect your liquid assets to other financial priorities. By applying gift cards to routine purchases, you maintain your cash reserves for needs not covered by the gift card, such as rent, utilities, or emergency savings.

For instance, a gift card to a grocery store can cover a portion of your weekly food budget, leaving more cash in your checking account for other bills. Similarly, a gift card for a gas station can reduce your transportation costs. This method is particularly beneficial for retailers you frequent regularly, as it seamlessly integrates the gift card’s value into your existing spending habits. The financial outcome is similar to receiving cash, as it reduces the demand on your personal funds for necessary expenditures.

Integrating gift card usage into your budgeting can be a practical financial strategy. If you receive a gift card for a big-box retailer, consider using it for household essentials like cleaning supplies, toiletries, or even small appliances. These are items you would likely purchase anyway, making the gift card a direct substitute for cash. This approach provides financial flexibility without the potential discounts associated with selling a gift card on a marketplace.

Other Options for Unwanted Gift Cards

For gift cards that may not be suitable for direct sale or regular consumption, several alternative options exist to ensure their value is utilized. One possibility is to exchange the gift card for one from a different retailer. While not all platforms offer this, some online services or specific retailers may facilitate exchanges. This can be particularly useful if you have a card for a niche store but prefer a more general merchandise retailer.

Donating gift cards to charity is another impactful choice. Many charitable organizations accept gift card donations, which they can then use to purchase supplies, support programs, or distribute to those they serve. Organizations like St. Jude Children’s Research Hospital and GiftCards4Change welcome such contributions. Individuals who initially purchased the gift card and then donate it to a qualified charity may be able to deduct the donation on their federal income taxes if they itemize deductions. Recipients who donate a gift card they received as a gift generally cannot claim a deduction, as they did not incur the initial cost.

Regifting the card to someone who can make better use of it is also a straightforward option. This simple act ensures the card’s value is realized by someone who genuinely desires the products or services offered by the specific retailer. While these alternatives do not provide immediate cash, they prevent the gift card’s value from going unused and can still offer a tangible benefit, whether through obtaining a more desirable gift card, supporting a charitable cause, or providing a thoughtful present to another individual.