How to Get Money Back From a Gift Card

Gift cards are a common form of payment and gifting. However, individuals often have unwanted or partially used gift cards and want to convert their balances into cash. While widely accepted for purchases, getting cash back directly can be challenging due to varying policies and regulations. This article explores legitimate ways to access the value stored on gift cards.

Direct Redemption Options

Direct cash redemption from a gift card’s original issuer is limited, typically governed by state laws or the issuer’s policies. Some states require retailers to provide cash back for small remaining balances, often under $5 or $10. For example, California mandates cash-out for balances less than $10.

These cash-out requirements are not universal and generally apply only to minimal remaining values. Some retailers may also have their own policies for limited cash-out or store credit, sometimes requiring the original purchase receipt. To determine if your gift card qualifies for direct cash redemption, review the card’s terms and conditions or contact the issuer’s customer service.

Selling Gift Cards

Selling unwanted gift cards is a practical way to convert their value into cash, often providing a higher return than direct redemption. Before selling, gather accurate information about the card, including the full gift card number, any associated PIN, and the exact current balance. You can check a gift card’s balance online, by phone, or in-store.

Online gift card marketplaces allow you to create an account and list your gift card by entering verified details like brand and balance. You will set a selling price, typically a percentage of the card’s face value, with payouts commonly ranging from 70% to 90%. Payout methods usually include PayPal, direct bank deposit, or a mailed check, with transactions processed within a few days.

Gift card kiosks offer an alternative for immediate cash. These machines verify the balance and present an instant cash offer. Kiosk payouts are generally lower than online platforms, often 60% to 85% of the card’s value. If accepted, the kiosk dispenses a voucher redeemable for cash at a customer service desk.

Selling directly to individuals, like friends or family, or through online classifieds, can yield a higher return closer to the card’s face value. However, this method carries increased risks related to security and fraud. Always protect your card information and transaction details, retaining records like screenshots or confirmation emails, as this documentation can be valuable if disputes arise.

Recovering Value from Problematic Gift Cards

Troubleshooting problematic gift cards can help salvage their value when faced with issues like loss, expiration, or merchant closure. If a gift card is lost or stolen, immediately contact the card issuer with any available details, such as proof of purchase or the card number. Some gift cards, especially those registered or purchased with a credit card, may be replaceable. Acting quickly can increase recovery chances.

Federal law dictates that gift cards cannot expire for at least five years from purchase or last fund addition. Many states offer greater consumer protection, some prohibiting expiration dates entirely or requiring longer validity periods. Even if a card appears expired, check its terms or contact the issuer, as they may extend the date or issue a new card, especially if state law offers stronger protections.

When a merchant goes out of business, recovering the card’s value becomes significantly more challenging. If the company files for bankruptcy, gift card holders are generally unsecured creditors, placing them low in repayment priority. While you can file a claim with the bankruptcy court, the likelihood of a full refund is often low. If the gift card was purchased with a credit card, you might explore whether your credit card company’s consumer protection policies allow for a chargeback.

Understanding Unclaimed Property Laws

State unclaimed property laws can help recover value from dormant gift card balances. Unclaimed property refers to financial assets left inactive by owners for an extended dormancy period. For gift cards, this means balances unspent for several years. After a specific dormancy period, typically two to five years, the value of these unused gift cards may be remitted to the state’s unclaimed property division.

Once transferred, the state holds these funds indefinitely for the rightful owner to claim. To search for potential unclaimed property, including gift card balances, use online databases. A good starting point is the National Association of Unclaimed Property Administrators (NAUPA) website, unclaimed.org, which provides an interactive map to state search portals. Claiming generally involves searching the state’s database and providing proof of ownership, such as personal identification and gift card details.