How to Transfer Gift Card Money to Bank Account

Converting gift card balances into bankable funds is often desired. While not all gift cards can be directly transferred, various methods exist to convert their value. Understanding gift card types and their functionalities is the first step. This guide explores pathways for transforming gift card balances into bankable funds.

Identifying Your Gift Card’s Transfer Potential

A gift card’s transfer potential depends on its type. Gift cards generally fall into two main categories: open-loop and closed-loop. Open-loop cards are branded with major payment network logos (e.g., Visa, Mastercard, American Express, Discover), functioning much like prepaid debit cards. They offer broad acceptance online and in physical stores.

In contrast, closed-loop cards are issued by specific retailers or affiliated merchants, redeemable only at designated locations. To determine transfer potential, look for a network logo and check for a PIN. Reviewing the card’s terms and conditions, often on the back or issuer’s website, provides details on functionality and restrictions, including any restrictions on direct transfers or ATM withdrawals.

Direct Transfer Options

For open-loop gift cards, several direct transfer options allow you to move funds to a bank account. One common method involves linking your gift card to popular online payment platforms such as PayPal, Venmo, or Cash App. You can add the gift card as a payment method within the app by entering the card number, expiration date, and security code. Once linked, you can initiate a transfer from the gift card balance to your linked bank account.

Some platforms might require you to send the funds to a trusted contact first, who then sends the money back to you, allowing you to withdraw it. Standard transfers to a bank account are often free and typically take one to three business days, while instant transfers usually incur a 1.5% to 3% fee. Another direct approach for PIN-enabled open-loop cards is to withdraw cash at an ATM and then deposit it. ATM withdrawals may involve fees from the card issuer or operator.

Indirect Conversion Strategies

For closed-loop gift cards or open-loop cards where direct transfer is not feasible, indirect strategies can still convert their value. Selling the gift card on online marketplaces is a popular option. Websites such as CardCash, Raise, and GiftCash allow you to list your card for sale, requiring you to provide the card number, PIN, and balance. You typically won’t receive the full face value, with payouts ranging from 70% to 92% of the card’s value, depending on brand popularity and demand. Some platforms may charge a seller fee; for instance, Raise deducts a 15% commission.

Another method involves using the gift card to purchase a money order, particularly effective with PIN-enabled open-loop cards at retailers like Walmart, CVS, or the U.S. Postal Service. Money orders typically have a maximum value, often between $500 and $1,000, and usually cost around $1. Once obtained, a money order can be deposited into your bank account like a check. Some stores may allow using an open-loop gift card to buy a more versatile prepaid debit card. Returning items purchased with a gift card for store credit or cash is possible, though store policies vary.