How to Send Money From a Gift Card

Gift cards represent a prepaid monetary value, typically issued by retailers or financial institutions, that can be used for purchases. While convenient for gifting, recipients often seek to convert the stored value into more flexible forms of currency, such as cash or direct bank transfers. This desire stems from the need to utilize the value for expenses not covered by the card’s specific merchant or brand, broadening its utility. Understanding the various pathways to achieve this conversion is a common objective for cardholders.

Understanding Your Gift Card

Identifying the specific type of gift card held is the first step in determining its potential for conversion. Gift cards generally fall into two main categories: closed-loop and open-loop. Closed-loop cards are restricted to purchases at a specific merchant or group of affiliated merchants, such as a particular clothing store or restaurant chain, offering limited flexibility. Open-loop cards, often branded with logos like Visa, Mastercard, or American Express, function similarly to debit cards and can be used anywhere those card networks are accepted, providing significantly more versatility.

Checking the balance of any gift card is a step before attempting to use or convert its value. Most gift cards provide a website address or a toll-free phone number printed on the back of the card, allowing cardholders to verify the remaining balance. Some cards may also allow balance checks directly at the point of sale at the issuing merchant. Verifying the accurate balance ensures transparency and helps prevent issues during transactions or attempted conversions.

Gift cards can come with various restrictions and fees that impact their total value and usability. Activation fees, charged at purchase, can reduce the card’s face value. Dormancy fees may be assessed if the card remains unused for an extended period, often after 12 to 24 months, gradually depleting the balance. Many cards also have expiration dates, after which the remaining value may be forfeited. Reviewing the terms and conditions, found on the card or issuer’s website, helps understand these potential deductions and limitations.

Selling Your Gift Card

Selling an unwanted gift card on an online marketplace offers a direct method to convert its value into spendable funds. These platforms, designed for gift card exchange, connect sellers with buyers interested in purchasing cards at a discount. The process typically begins with the seller creating an account and then listing their gift card for sale, providing details such as the retailer, the balance, and the desired selling price.

Once listed, the platform requires verification of the gift card’s balance to ensure accuracy and prevent fraud. This verification can involve the seller providing the card number and PIN, allowing the platform to check the balance directly with the issuing merchant. After verification, the card is made available to buyers, who purchase it at a percentage of its face value. The selling price for a gift card typically ranges from 70% to 90% of its face value, depending on factors such as retailer popularity and demand.

Upon a successful sale, these platforms offer various payout methods to transfer the funds to the seller. Options include direct deposit to a bank account, transfer to a PayPal account, or a physical check mailed to the seller’s address. The time frame for receiving payment can vary, often ranging from a few business days to a week after the transaction is finalized. Choosing a reputable online marketplace with a clear history of secure transactions and positive user reviews ensures a safe and reliable selling experience.

Alternative Uses and Indirect Conversions

Open-loop gift cards, such as those bearing Visa or Mastercard logos, can be used to pay household bills online, effectively freeing up cash in a personal budget. Many utility providers, internet services, and phone companies accept these network-branded cards as a form of payment, similar to how they accept credit or debit cards. By using the gift card to cover these regular expenses, a cardholder can retain their cash for other immediate needs or savings, indirectly converting the gift card’s value.

Adding open-loop gift cards to digital wallets is another option. Platforms like PayPal, Venmo, Apple Pay, or Google Pay allow users to link these cards to their accounts. Once linked, the gift card balance can be used for purchases wherever the digital wallet is accepted, offering increased convenience. While some digital wallets may facilitate transfers between users or to bank accounts, direct transfers of funds originating from a gift card balance to a bank account are often restricted or subject to specific fees and limitations by the wallet provider or the card issuer.

Using a gift card to make purchases you would ordinarily buy with cash or a debit card is a practical strategy for indirect conversion. For example, using a gift card for groceries or gasoline preserves their existing cash or bank account balance. This approach does not directly convert the gift card into cash but allows the cardholder to allocate other funds elsewhere, reducing out-of-pocket expenses for routine items.

Attempting to receive cash back from a merchant when using a gift card is generally not a reliable method for conversion. While some stores offer cash back with debit card transactions, this policy rarely extends to gift card purchases, especially with closed-loop cards. Retailers typically have strict policies regarding cash back to prevent fraud and ensure that funds are redeemed for merchandise or services as intended by the gift card’s terms. It is advisable to check a specific store’s policy explicitly before assuming cash back is an option.