You cannot deposit a gift card directly into a checking account the way you would a check or cash
A gift card is not money—it is a prepaid balance tied to a specific retailer or payment network. Your bank has no way to convert it into funds in your account because the card issuer (Target, Amazon, Visa, etc.) does not send that value to banks. The card holds its own separate balance, and you spend from that balance at the retailer or wherever it is accepted.
What you can do instead is use the gift card to buy something, then return it for cash or a refund to your bank account. Or, if the gift card is a Visa or Mastercard branded card (not a store-specific card), you may be able to transfer the balance to a payment app like PayPal or Venmo, then move that money to your checking account. The path depends on what type of gift card you have.
Key Takeaways
- Store gift cards (Target, Best Buy, etc.) cannot be deposited into a bank account because they are not recognized as currency by banking systems.
- Visa or Mastercard branded gift cards can sometimes be linked to payment apps or used to make purchases that you then return for a refund to your account.
- The fastest way to convert a gift card to bank funds is to buy something returnable, then return it for a refund to your debit card or bank account.
- Some gift card resale platforms will buy unused cards from you, but they typically pay less than face value and require identity verification.
How store-specific gift cards work in the banking system
A Target gift card or Starbucks card is a closed-loop system. The retailer loads a balance onto the card, and that balance lives only within that retailer's payment network. When you swipe the card at checkout, the retailer deducts the amount from that balance. Your bank never sees the transaction as a deposit—it sees it as a purchase you made with your debit card or cash.
Banks cannot accept gift cards as deposits because there is no mechanism to verify the balance or transfer it. A gift card is not a check (which has routing and account numbers), not cash (which has physical value), and not a bank transfer (which moves funds between accounts). It is a proprietary account balance that only the issuer can read and move.
What to do with a Visa or Mastercard branded gift card
If your gift card has a Visa, Mastercard, or American Express logo, it is a network card, not a store card. These cards can sometimes be linked to digital payment platforms. PayPal, for example, allows you to add a Visa gift card as a payment method, and some users report being able to transfer small amounts to their PayPal balance. Venmo has similar options, though policies vary.
Once the balance is in PayPal or Venmo, you can transfer it to your linked bank account. This process is not when ready—transfers usually take one to three business days—and some platforms charge a fee for moving money out. Check the app's fee schedule before you start, because a $2 or $3 fee on a small gift card balance may not be worth it.
Another option is to use the Visa or Mastercard gift card to make a purchase online or in a store, then return the item for a refund. The refund will go back to the card you used to buy it, which means the balance returns to your gift card. This does not help you move the money to your bank account, but it does let you recover the funds if you need to use them elsewhere.
Using a gift card to buy something returnable
The most reliable way to convert a gift card into bank account funds is to purchase something you can return. Buy an item at the retailer that issued the card, keep the receipt, and return it within the return window. When you return it, ask the cashier to refund the amount to your debit card or bank account instead of back to the gift card.
This works best at large retailers like Target, Walmart, or Best Buy, which have clear return policies and can process refunds to external payment methods. Smaller retailers or online-only stores may only refund to the original payment method (the gift card itself), which does not help you.
The catch is that you have to buy something first. If you buy a low-cost item like a greeting card or a small household item, you lose the value of that item. If you buy something you actually want, you are not really converting the gift card—you are just spending it. This method works best when the retailer sells something you need anyway.
Gift card resale platforms and their limitations
Websites like CardCash, Raise, and Decluttr buy unused gift cards from people and pay cash (usually via bank transfer or check). However, they typically pay 70 to 90 percent of the card's face value, meaning a $100 gift card might sell for $75 to $90. The discount is how these platforms make money.
These sites require you to verify your identity and provide proof that you own the card (usually a photo of the card number and back). The process takes several days to a week, and the platform holds the funds while they verify the card is legitimate and has not been used. If you need the money quickly, this is not the fastest route.
Resale platforms are most useful if you have a gift card you will never use and do not mind losing 10 to 30 percent of its value for the convenience of getting cash. If the card is for a store you shop at regularly, spending it there is a better use of the balance.
Why banks will not accept gift cards as deposits
Banks are regulated by federal law to track the source of deposits and verify that money is legitimate. A check has a routing number and account number that the bank can verify. A wire transfer has a sending bank and receiving bank that confirm the transaction. A gift card has none of that—it is a private account between you and the retailer.
If a bank accepted gift cards as deposits, it would have no way to verify the balance, confirm the card was not stolen, or prove where the money came from. This creates fraud risk and compliance problems for the bank. For that reason, no major bank will process a gift card as a deposit.
Frequently Asked Questions
Can I deposit a digital gift card code to my bank account?
No. Digital gift card codes work the same way as physical cards—they are proprietary balances held by the retailer, not currency that banks can process. You would need to spend the code at the retailer or use it through a payment app that accepts it.
What if I have a gift card with no balance left?
An empty gift card has no value and cannot be deposited. If you believe the card should have a balance, contact the retailer's customer service with your receipt or the card number. They can check the balance and reload it if there was an error.
Can I use a gift card to pay my credit card bill and then deposit the refund?
No. Credit card companies do not accept gift cards as payment. You would need to use the gift card to buy something, return it for a refund to your bank account, and then use that bank account to pay your credit card bill.
Do payment apps like Venmo charge a fee to transfer gift card money to my bank?
Most payment apps charge a fee to transfer money out to a bank account—usually 1 to 3 percent. Some offer free transfers if you wait a few business days. Check the app's fee schedule before you link your gift card, because the fee may be more than the convenience is worth on a small balance.
What happens if I try to deposit a gift card at an ATM?
ATMs only accept cash and checks. If you try to insert a gift card, the machine will reject it. Gift cards have no magnetic stripe or chip that ATMs can read as a financial instrument.