Where Can I Cash In My Gift Cards for Money?

Converting unwanted gift cards into cash or a more flexible form of value is a common need. Gift cards, while convenient for gifting, often remain unused or could be better utilized elsewhere. Understanding legitimate avenues for conversion can help individuals unlock their financial utility. This guide provides an overview of how to cash in gift cards effectively.

Types of Gift Cards and Their Convertibility

The ability to convert a gift card into cash largely depends on its type, which falls into two main categories. “Open-loop” gift cards are issued by major payment networks such as Visa, Mastercard, or American Express. These cards function much like debit cards and are accepted wherever the respective payment network is honored, offering broad spending flexibility.

In contrast, “closed-loop” gift cards are issued by specific merchants, like a particular retail store or restaurant chain. These cards are restricted to use only at the issuing merchant’s locations or online platforms. Because their utility is limited to a single brand, converting closed-loop cards to cash typically involves selling them at a discount to their face value. The distinction between these two card types dictates the range of conversion methods and the potential return on your card’s value.

Essential Preparations Before Cashing In

Before attempting to convert any gift card, several preparatory steps are important to ensure a smooth transaction. The first step involves verifying the remaining balance on the card. This can usually be done by visiting the issuer’s website, calling a toll-free number on the card, or, for closed-loop cards, inquiring directly at the merchant’s location.

Locating the card’s Personal Identification Number (PIN), if applicable, is another preparation. For many online transactions or certain cash-out methods, particularly with open-loop cards, a PIN is required to authorize the transaction. This code is typically found on the back of the card, often under a scratch-off panel. Additionally, review the terms and conditions. This can reveal any expiration dates or dormancy fees that might diminish the card’s value.

Where and How to Convert Gift Cards to Cash

Once you have prepared your gift card by confirming its balance and locating its PIN, various avenues exist for converting it into cash or a cash equivalent.

Online gift card marketplaces offer a common method, allowing you to list your card for sale to interested buyers. Platforms typically require you to create an account, input the card details and balance, and set a selling price, which is usually a percentage below the face value. Upon a successful sale, these platforms facilitate the transfer of funds to you, often through direct deposit or electronic payment services.

Gift card exchange kiosks provide an immediate, in-person option. These automated machines, often found in grocery stores or retail centers, allow you to scan your gift card and receive an instant cash offer. If you accept, the kiosk dispenses cash directly, typically after deducting a service fee ranging from 15% to 25% or more of the card’s value. Immediate payout is a primary draw for this method.

For open-loop gift cards, another strategy involves using them to purchase items that are easily convertible to cash. This might include buying money orders at a postal office or authorized retailer, where permitted, though some locations may not accept gift cards for such purchases. Alternatively, you could purchase high-demand consumer goods that can be resold quickly through online marketplaces or local consignment shops. For closed-loop cards, while direct cash equivalent purchases are rare, buying desirable products for resale can serve as an indirect conversion method.

Consider in-person resale options, such as pawn shops or local businesses that specialize in buying gift cards. These establishments typically offer a significantly lower percentage of the card’s face value compared to online marketplaces or kiosks, reflecting their operational costs and immediate liquidity. Compare offers from multiple vendors to secure the best possible return.

Factors Affecting Your Payout

When converting a gift card to cash, you will rarely receive 100% of its face value. Services that facilitate gift card exchanges, whether online platforms or physical kiosks, charge fees. The discount applied often varies based on the merchant’s popularity, the specific gift card’s demand, and the card’s type, with open-loop cards generally yielding a higher percentage of their value.

Payout percentages can range significantly, from around 70% to 90% of the card’s value, depending on these factors. The methods for receiving your funds also vary, including direct bank deposits, electronic payment services like PayPal, or physical checks mailed to you. For very small balances, combining them with other gift cards for a larger purchase, or simply using them for small, everyday transactions, might be more practical than attempting a cash conversion due to potential minimum transaction values or disproportionate fees.