How to Get Money From Your Unwanted Gift Cards

Gift cards are a popular and convenient gifting option, but recipients often find themselves with cards they may not use. Converting these unwanted gift cards into a more flexible form, such as spendable cash or funds for everyday expenses, can unlock their inherent monetary value. Understanding the various avenues available can help consumers maximize their financial utility.

Verifying Gift Card Details Before Conversion

Before attempting any conversion or sale of a gift card, gather all relevant details. Knowing the exact remaining balance is a fundamental step, typically checked through the issuer’s website, a toll-free number provided on the back of the card, or by inquiring in-store. This helps in accurately valuing the card for any transaction.

Confirmation of activation is also necessary, as an unactivated card holds no value and cannot be used or sold. Most gift cards are activated at the time of purchase, but some may require manual activation via a phone call or website visit. Check for any expiration dates, as well as potential dormancy or inactivity fees. Federal law states that gift cards cannot expire in less than five years from their purchase date, but fees can be charged after 12 months of inactivity, diminishing the card’s value. These terms are usually found in the fine print on the card or within the online terms and conditions.

Finally, understanding any specific usage restrictions is beneficial. Some cards may be limited to in-store use, online-only purchases, or specific merchandise categories. General-purpose gift cards, such as those with a Visa or Mastercard logo, offer broader acceptance compared to store-specific cards.

Selling Gift Cards for Cash

Directly converting unwanted gift cards into cash provides immediate liquidity. Several methods exist for selling gift cards, each with its own process and typical payout percentages.

Online marketplaces specialize in facilitating the sale of gift cards to interested buyers. Platforms like CardCash and Raise allow sellers to list their cards, often requiring the card number, PIN, and exact balance for verification. Payout percentages on these sites generally vary, with CardCash offering up to 92% of the card’s value, though typical payouts might be closer to 50% to 88% depending on the card’s popularity. Raise typically charges a 15% commission on sold cards, which impacts the net payout received by the seller. Once a card sells, payment can be disbursed through various methods, including direct deposit, PayPal, or a mailed check.

Another option for immediate cash is using gift card exchange kiosks, often found in high-traffic retail locations like grocery stores or pharmacies. These automated machines provide an instant offer for the gift card after scanning it, typically ranging from 60% to 85% of the card’s value. If the offer is accepted, the kiosk prints a voucher that can be redeemed for cash at the store’s customer service desk. While convenient for instant access to funds, the payout percentages from kiosks are generally lower than those offered by online marketplaces.

Direct or private sales to individuals, such as friends, family, or through local classifieds, can potentially yield a higher percentage of the gift card’s face value since there are no intermediary fees. However, these transactions require increased caution to ensure secure payment and prevent scams. It is advisable to conduct such sales in person in a public place and verify payment immediately.

Converting Gift Card Value into Spendable Funds

Beyond direct cash sales, gift card value can be converted into spendable funds through indirect methods, effectively freeing up personal cash for other needs. These strategies focus on leveraging the gift card’s utility for everyday expenditures or converting it into a more versatile payment instrument.

Utilizing gift cards for essential purchases is a practical approach to managing personal finances. By using gift cards for items like groceries, gas, or household necessities at the specific retailers for which the cards are issued, the cash that would have been spent on these items remains in one’s budget. This strategy directly reduces out-of-pocket expenses for routine purchases.

In certain situations, general-purpose gift cards, such as those branded with Visa or Mastercard, can be used to pay recurring bills. While store-specific gift cards typically cannot be used for bill payments, these open-loop cards function similarly to debit cards. Some utility providers or streaming services may accept these cards as a form of payment, though it is important to confirm their acceptance policies.

Purchasing money orders or loading reloadable prepaid debit cards with gift cards can also convert their value into more flexible funds, though these options often come with limitations and fees. General-purpose, PIN-based Visa or Mastercard gift cards are typically required for these transactions, as store-specific gift cards are usually not accepted. Confirm with the specific vendor whether they accept gift cards for money order purchases and be aware of any associated fees. Loading funds onto reloadable prepaid cards may be possible with certain gift cards, but this also depends on the card network and the financial institution’s policies, often involving fees for the transaction.