How to Liquidate Gift Cards: Methods for Cash or Credit

Gift cards are a popular gifting solution, but recipients often hold cards for retailers they do not frequent. This article explores practical strategies for converting unwanted gift cards into cash or credit, unlocking their financial utility.

Understanding Your Gift Card Details

Before exploring liquidation options, understand your gift card’s details. Check the current balance, which determines its potential resale or exchange value. Many retailers offer balance checks online, requiring the card number and sometimes a Personal Identification Number (PIN). A toll-free customer service number is also often printed on the back of physical cards.

Physical gift cards display a card number on the front or back, with a PIN or security code usually on the back under a scratch-off panel. Digital gift card information is in the confirmation email or digital wallet. Review the terms and conditions, often on the retailer’s website, for expiration dates, dormancy fees, or usage restrictions that might reduce the card’s value or affect its liquidation eligibility.

Identifying the type of gift card influences liquidation methods. Store-specific (closed-loop) cards are redeemable only at a particular retailer or brand. General-purpose (open-loop) cards function similarly to debit cards and can be used wherever the associated payment network, like Visa or Mastercard, is accepted. This distinction is important because general-purpose cards offer broader acceptance, while store-specific cards have more limited liquidation pathways.

Selling Gift Cards Online

Selling gift cards online is a common method for converting unwanted cards into cash. Reputable platforms like Raise and CardCash serve as intermediaries, connecting sellers with buyers interested in discounted gift cards.

The process begins with creating an account and listing your gift card. Accurately enter the card’s details, including the retailer, exact balance, card number, and any associated PIN. Sellers set their own price, generally a percentage below face value to attract buyers; popular retailers might range from 85% to 95% of the original value. Marketplaces often verify the card’s balance and validity to ensure legitimate transactions before a sale is finalized.

Once a gift card is purchased, the platform handles the transfer of card details to the buyer. Payout options for sellers include direct deposit, PayPal, or store credit. Processing times typically range from one to two days after approval. Platforms generally charge a commission, often a percentage of the sale price, deducted from the payout; some may take around a 15% cut.

Selling Gift Cards at Kiosks and Other Direct Services

For immediate cash or credit, selling gift cards at automated kiosks or direct purchase services offers a convenient alternative to online marketplaces. Gift card exchange kiosks, often found in high-traffic locations like grocery stores or malls, provide an on-the-spot liquidation option. While some kiosk brands have reduced availability, other alternatives and store-specific systems may still be operational.

The process at a kiosk is straightforward. Users insert or scan their physical gift card, and the machine verifies the card’s brand and balance. The kiosk then presents an instant cash offer, typically a percentage of the card’s face value. This offer can range from 60% to 85% of the card’s value, depending on the retailer and current demand. If accepted, the kiosk usually dispenses a voucher or receipt redeemable for cash at the store’s customer service desk.

While kiosks provide immediate payment, the trade-off is often a lower payout percentage compared to online selling platforms. Some kiosks may have minimum balance requirements, such as a $20 minimum, and might only accept cards from major retailers. Beyond kiosks, some local buy-and-sell businesses or retail chains may offer direct purchase services for gift cards, with rates generally falling within the 65% to 90% range of the card’s value, depending on brand popularity.

Creative Ways to Use Unwanted Gift Cards

When direct selling is not preferred or feasible, several creative approaches can maximize the value of unwanted gift cards. One strategy involves using the gift card for everyday purchases at the specified retailer. This can include routine expenses like groceries, gas, or coffee, converting the card’s value into items you would have purchased anyway. This prevents the card from going unused and losing value due to dormancy fees or expiration.

Another option is to explore whether the gift card can be used to pay for bills or subscriptions offered by the same retailer. For example, a gift card to a general merchandise retailer might be applied toward digital services or product subscriptions. While not universally applicable, this method can transform a store-specific card into a payment for an ongoing service.

Exchanging a gift card for a more useful gift card is another viable strategy. Some online platforms or services allow users to trade their existing gift cards for cards from other brands that align better with their spending habits. This method is useful for cards from niche retailers, enabling a swap for a more broadly accepted store or general merchandise provider.

Finally, donating unwanted gift cards to charitable organizations is a way to put their value to good use while potentially offering a tax benefit. Many nonprofits accept gift card donations, which they can use to purchase supplies, support programs, or convert into cash for their operational needs. Some charity marketplaces facilitate the donation process, allowing you to contribute the balance of an unwanted retail gift card to a chosen cause.