How to Transfer a Gift Card to Cash

Gift cards are common for various occasions, but cash often provides greater flexibility for immediate financial needs. This article explores several methods for transforming gift cards into cash.

Understanding Your Gift Card

Understanding a gift card’s characteristics is important before conversion. Gift cards typically fall into two main categories: “closed-loop” and “open-loop.” Closed-loop cards are issued by a specific merchant and can only be used at that store or brand, such as Amazon or Starbucks. In contrast, open-loop cards, like those from Visa, Mastercard, or American Express, function similarly to debit cards and can be used anywhere the card network is accepted. Open-loop cards offer more versatility for cash conversion due to their broader acceptance.

Determining the balance of your gift card is a necessary step for conversion. Most issuers provide multiple ways to check the balance, including their website, customer service, or in-person inquiry. Knowing the exact balance helps evaluate potential offers and avoids complications during a transaction. Many conversion methods require the card’s full number and, if applicable, its Personal Identification Number (PIN) for verification and processing.

Selling Gift Cards Directly

Selling gift cards through specialized marketplaces is a common approach to obtaining cash. Online gift card marketplaces, such as CardCash, Raise, and GiftCash, allow individuals to sell their gift cards to others seeking discounted store credit. The process involves entering the card’s details, including merchant and balance, to receive an offer. Payouts are typically less than the card’s face value, often ranging from 70% to 92%, and can be disbursed via PayPal, direct deposit, or check. Processing times vary.

Gift card exchange kiosks, such as Coinstar Exchange, are frequently found in grocery stores. These kiosks provide an immediate cash offer after the gift card is inserted and scanned. If accepted (typically 60% to 85% of value), the kiosk prints a voucher redeemable for cash at a customer service desk. While convenient for instant access to funds, kiosk payouts are generally lower than online platforms. Selling gift cards directly to individuals, perhaps through social media, might yield a higher return, but carries an increased risk of scams and fraud, requiring extreme caution.

Alternative Conversion Approaches

Alternative strategies exist for converting gift cards, particularly open-loop cards, into cash or cash equivalents. Open-loop gift cards, like Visa or Mastercard gift cards, can sometimes be used to pay recurring bills, such as utility or phone bills, if the service provider accepts them as a form of payment. This converts the card’s value into a reduction in future cash outlays.

Another option for open-loop cards involves loading the funds onto digital payment applications like Venmo, PayPal, or Cash App, provided the app supports gift card loads. Once the funds are in the digital wallet, they can often be transferred to a linked bank account. Functionality varies by application and may incur small transaction fees, typically 1% to 3% of the amount transferred.

Purchasing items with a gift card and then returning them for a cash refund is a less reliable method. Most retailers issue refunds for gift card purchases as store credit or a new gift card, rather than cash, to prevent return fraud. Review the specific store’s return policy before attempting this, as cash refunds for gift card purchases are rare.

Using gift cards to purchase money orders at post offices or some grocery stores can convert the card’s value into a negotiable instrument. This method is often restricted to PIN-enabled open-loop gift cards and may involve a small fee, usually ranging from $0.70 to $1.50. Many money order issuers do not accept gift cards due to anti-money laundering regulations.

Maximizing Your Return and Staying Safe

Converting gift cards to cash usually involves a reduction from the card’s face value, as service providers and marketplaces levy fees or offer a lower percentage payout. Payouts typically range from 60% to 92% of the card’s value, depending on the platform and demand for the specific retailer’s card. To maximize return, compare offers from multiple online marketplaces and kiosks before committing to a transaction. Platforms like CardCash, Raise, and GiftCash often have varying rates for the same card, making comparison shopping beneficial.

Before any transaction, re-verify the gift card’s balance to ensure accuracy and prevent issues during the transfer process. This simple step can help avoid disputes and delays. Maintain security precautions throughout the conversion process; share gift card numbers and PINs only on reputable and secure platforms. Avoiding unsolicited offers from unverified individuals or websites helps mitigate fraud risk. Always review the terms and conditions of any service or store policy before proceeding to understand all associated costs, limitations, and payout timelines.