What Gift Cards Can Be Used at an ATM?

Gift cards offer a convenient way to give and receive funds, but their functionality, especially regarding ATM withdrawals, can vary significantly. Understanding the specific type of gift card you possess is the first step in determining how you can use its balance, including whether cash withdrawal at an ATM is an option. This guide explores the different kinds of gift cards and their potential uses.

Understanding Gift Card Types

Gift cards are broadly categorized into two main types: open-loop and closed-loop. Open-loop gift cards are branded with major payment network logos (e.g., Visa, Mastercard, American Express, or Discover). These cards operate much like debit or credit cards and are accepted at any merchant that processes payments for their network. They are the only type of gift card that might allow for ATM cash withdrawals, though this is not universally true for all open-loop cards.

Conversely, closed-loop gift cards are tied to a specific merchant or a limited group of affiliated retailers. These cards can only be redeemed at the issuing merchant and typically do not support ATM access or cash back. Their use is restricted to the specific brand that issued them.

Using Open-Loop Gift Cards at ATMs

For open-loop gift cards, cash withdrawal at an ATM is sometimes possible, but requires specific steps. A Personal Identification Number (PIN) is mandatory for ATM transactions. Many open-loop gift card issuers provide instructions for setting up a PIN, often through their website or customer service. Some cards may even have a pre-assigned PIN.

Once a PIN is established, you can proceed to an ATM that displays the logo of your card’s payment network (e.g., Plus, Pulse, NYCE, or Star). Insert the card, select “checking” or “savings” if prompted, enter your PIN, and then specify the withdrawal amount. Not all open-loop cards are enabled for cash access, so checking the card’s terms and conditions beforehand is advisable.

Key Considerations for ATM Withdrawals

Even when an open-loop gift card allows ATM withdrawals, there are important considerations and potential costs. Both the ATM operator and the gift card issuer may impose fees for cash withdrawals. These fees can reduce the card’s value, particularly for smaller balances, and are typically disclosed on the ATM screen before you complete the transaction.

Gift cards may also have daily withdrawal limits, which vary by issuer. Some cards might also require a minimum balance to perform an ATM withdrawal, or the amount you can withdraw might be limited to less than the card’s full balance. It is also important to verify that your specific open-loop gift card is enabled for ATM cash access, as not all of them offer this feature despite carrying a major network logo.

Alternative Uses for Gift Card Balances

If ATM withdrawal is not feasible or desired due to fees or card limitations, several alternative ways exist to utilize gift card balances. Both open-loop and closed-loop gift cards can be used for online purchases by entering card details. Physical retailers also accept these cards for in-store purchases, often requiring “credit” or “debit” selection at checkout.

Many eligible open-loop gift cards can be added to digital wallets like Apple Pay or Google Pay for contactless payments. For remaining small balances, you can often use them to purchase an e-gift card from an online retailer like Amazon, which allows for specific denominations, effectively consolidating the small amount. Some online services, such as Venmo, CashApp, and PayPal, may also accept these cards as a form of payment, though direct bank transfers are typically not supported.