How to Turn Your Gift Cards Into Cash

Sometimes, gift cards received as gifts or rewards do not align with personal needs or preferences. While convenient for givers, these cards can become unused assets for recipients, prompting a desire to convert them into spendable cash. Understanding how to liquidate these cards effectively can unlock their value for other purposes. This process involves verifying card details and utilizing various selling channels.

Verifying Gift Card Information

Before selling or exchanging a gift card, verifying its essential details is a necessary step. This includes checking the card’s balance, which can be done online via the merchant’s website, by calling a toll-free number on the card, or by inquiring in-store. Verifying the balance ensures transparency and prevents issues during the selling process.

Confirming the specific merchant or brand is also important. Different retailers have varying demand in the secondary market, which can influence the potential resale value. It is crucial to check for any expiration dates or dormancy fees that could diminish the card’s value over time. Gift cards generally cannot expire for at least five years from activation, and inactivity fees are limited. Understanding these terms and conditions ensures a smooth transaction and helps accurately represent the card’s worth to potential buyers or exchange platforms.

Selling Through Online Marketplaces

Online marketplaces are a primary method for converting unwanted gift cards into cash. These platforms allow users to list gift cards for sale, often requiring details such as the card’s brand, remaining balance, and sometimes the card number and PIN. After submission, the platform provides an offer, which is a percentage of the card’s face value.

If the offer is accepted, payment is processed through various methods, including direct deposit, PayPal, or check, often within a few business days. These online services act as intermediaries, connecting sellers with buyers seeking discounted gift cards. Reputable platforms prioritize security, often requiring identity verification and protecting both sellers and buyers from fraudulent activities. Avoid sharing card details with unverified buyers outside these secure platforms.

Using Gift Card Exchange Kiosks

Physical gift card exchange kiosks, found in grocery stores or shopping malls, offer another way to turn gift cards into cash. These self-service machines provide a convenient way to liquidate unwanted cards for immediate cash. The process involves inserting or scanning the gift card, allowing the kiosk to verify its balance and the associated retailer.

Upon verification, the kiosk presents an instant cash offer, which the user can accept or decline. If accepted, the machine dispenses cash directly or prints a voucher redeemable for cash at a customer service desk. While kiosks offer instant liquidity, payout rates may differ from online platforms, and not all gift card brands are accepted. Some kiosks may have minimum balance requirements and may require identity verification for security.

Understanding the Cash Value Received

When converting a gift card to cash, the amount received will be less than the card’s face value. This discount is how gift card exchange services, whether online platforms or physical kiosks, generate revenue. They purchase cards at a reduced rate and resell them to consumers at a slightly higher, but still discounted, price. Payouts typically range from 60% to 85% of the gift card’s value.

Several factors influence the percentage offered for a gift card. The merchant’s popularity and demand are significant; cards from widely recognized retailers tend to fetch higher percentages. The remaining balance can also play a role, with higher balances sometimes commanding better rates. Cards with no expiration dates or a long time until expiration are generally more valuable. Market fluctuations, including seasonal demand, can also affect the offer rate.