How to Get Cash From Your Gift Cards

Gift cards are prepaid stored-value cards issued by retailers or financial institutions, functioning as an alternative to cash for purchases within specific stores or associated businesses. Many individuals receive gift cards for merchants they do not frequent, leading to a common desire to convert these cards into readily usable cash. While direct cash redemption of a gift card is not universally available, several practical methods exist to transform gift cards into cash or cash equivalents.

Selling Your Gift Card for Cash

Selling an unwanted gift card is often the most direct path to obtaining cash or a near-cash equivalent, although this typically means receiving less than the card’s face value. Several platforms facilitate these transactions, offering varying degrees of convenience and payout percentages.

Online marketplaces specialize in the buying and selling of gift cards, providing a structured environment for these exchanges. Companies such as Raise, CardCash, and GiftCash operate by purchasing gift cards from sellers at a discount and then reselling them to buyers at a slightly smaller discount, generating revenue from the spread. These platforms offer a secure framework for transactions, often verifying card balances and ensuring legitimate transfers between parties.

For those seeking immediate liquidity, physical gift card kiosks, like Coinstar Exchange machines found in grocery stores and malls, present an alternative. These kiosks provide instant offers for gift cards, allowing sellers to receive cash on the spot or a voucher redeemable for cash at a customer service desk. However, the payout from kiosks is lower than what might be achieved through online marketplaces, with offers ranging from 60-85% of the card’s balance.

To sell a gift card, whether online or at a kiosk, certain information is essential. Sellers need to provide the card’s current balance, the full card number, and the Personal Identification Number (PIN) if one is present. The specific retailer or brand is also required, and some platforms may ask for proof of ownership.

The selling process for online platforms begins with entering the gift card details to receive an offer. If the offer is acceptable, the seller accepts it and either mails the physical card or provides the digital card details. Payment is issued through various methods, including direct deposit, PayPal, or a mailed check. Verifying the card’s balance before listing is important to ensure accurate offers.

For kiosks, the process is streamlined: the gift card is scanned, an instant offer is displayed, and upon acceptance, cash or a voucher is dispensed immediately. Sellers can expect to receive between 70% and 90% of the gift card’s face value, with the exact percentage depending on factors such as the card’s popularity and the platform used.

Converting Gift Cards to Cash Indirectly

When direct selling options are not suitable or desired, individuals can indirectly convert gift cards to cash by purchasing items for resale. This method involves using the gift card to acquire merchandise that can then be sold to generate cash.

Selecting the right items for this strategy is important for maximizing returns. Ideal items for resale possess characteristics such as high demand, universal appeal, ease of shipping or transfer, and a strong ability to retain their value. Examples include popular electronics, current-generation gaming consoles, high-value brand-name goods, or general-purpose gift cards (like Visa or Mastercard gift cards) if the original gift card allows their purchase. Before making a purchase, research potential resale values on platforms like eBay, Craigslist, or Facebook Marketplace to estimate the net proceeds.

Once a suitable item is identified, the gift card is used to make the purchase, either online or in a physical store. It is important to retain the receipt for the purchased item, as proof of purchase may be necessary for the resale process or for any potential returns.

Reselling the item for cash involves listing it on various platforms. Common venues include online marketplaces such as eBay, Craigslist, or Facebook Marketplace, as well as local options like pawn shops or consignment stores. The process involves creating a listing with clear descriptions and photos, setting a competitive price, and communicating with interested buyers. Once a sale is agreed upon, arrangements for payment and delivery or pickup are made.

Sellers should account for platform fees (e.g., eBay’s 8-15% of selling price) and payment processing fees (e.g., PayPal’s 2.99% plus fixed fee). Additional considerations include potential shipping costs and the time and effort required to manage the listing and sale, which can reduce the effective cash return.

Redeeming Small Balances for Cash

Some U.S. states have enacted laws that mandate retailers to provide cash redemption for gift cards once their remaining balance falls below a specific threshold. This offers a direct cash-out option, though its applicability is limited by geographical location and the remaining balance on the card.

Several states have cash-out laws. These include California, Colorado, Connecticut, Maine, Massachusetts, Montana, New Jersey, Oregon, Rhode Island, Vermont, and Washington. Balance thresholds vary by state; for instance, California allows cash redemption for balances under $10, while many other states set the threshold at under $5. Some states, like Rhode Island and Vermont, permit cash redemption for balances as low as $0.99.

To determine eligibility, consult the consumer protection laws of the specific state where the gift card is being redeemed or review the gift card issuer’s terms and conditions. These rules can vary, and not all gift cards, particularly bank-issued cards like Visa or Mastercard, may be subject to these state-specific redemption laws.

The redemption process involves contacting the gift card issuer or the retailer directly. This can be done via phone or by visiting an in-store customer service desk. Individuals need to provide the gift card number, the PIN, and proof of the current balance. If the card meets the state’s requirements for cash redemption, the retailer is obligated to issue a check or cash for the remaining balance.