No, you cannot deposit a gift card itself into a checking account

A gift card is not money—it is a stored-value card issued by a retailer or payment network. Your bank cannot accept it as a deposit because it has no routing number, account number, or connection to the banking system. The card itself holds a balance at the issuer (Target, Amazon, Visa, etc.), not at your bank.

What you can do instead is convert the gift card to cash or transfer its value to your bank account through specific methods, depending on the card type. Some paths work quickly; others take days or charge fees. The method that works for you depends on whether the card is a closed-loop card (issued by one retailer) or an open-loop card (Visa, Mastercard, American Express branded).

Key Takeaways

  • Gift cards cannot be deposited directly into a checking account because they are not connected to the banking system.
  • Visa, Mastercard, and American Express gift cards can be transferred to a linked bank account through the card issuer's app or website.
  • Retailer gift cards (Target, Best Buy, etc.) must be spent at that retailer or converted to cash through a third-party service, which may charge a fee.
  • Cashing out a gift card at a store or ATM is the fastest method but may not be available for all card types.
  • Some third-party apps buy gift cards at a discount and deposit cash to your bank account, but the payout is less than the card's face value.

How to move money from an open-loop gift card to your bank account

Open-loop cards—those branded Visa, Mastercard, or American Express—are connected to payment networks and can often be linked to your bank account. Log into the card issuer's website or app (usually found on the back of the card or in the welcome materials). Look for an option to "transfer balance," "cash out," or "add to bank account." You will need your checking account number and routing number.

The transfer typically completes within one to three business days. Some issuers charge a small fee (usually $1 to $3) to move the balance; others do not. Check the terms before you confirm. If the card issuer does not offer a direct transfer option, you can link the card to a digital wallet (Apple Pay, Google Pay) and use it to pay bills or transfer funds through a payment app like Venmo or PayPal, though this is slower and may involve intermediate steps.

Converting a retailer gift card to cash or bank deposit

Closed-loop cards issued by a single retailer (Target, Walmart, Best Buy, Home Depot) cannot be transferred directly to your bank. Your options are narrower. The fastest route is to spend the card at that retailer, then deposit the cash savings into your account—but that requires a purchase you were already planning to make.

If you want to convert the card to cash without spending it, some retailers will cash out the remaining balance at the register, though policies vary. Target and Walmart, for example, will sometimes do this, but you may need to ask a manager. Best Buy and Home Depot typically do not. Call the retailer's customer service line to confirm their policy before you visit a store.

A third option is to sell the gift card to a reseller. Services like Raise, CardCash, and Decluttr buy unused gift cards at a discount—usually 70 to 95 percent of face value—and deposit the cash to your bank account. The payout is less than what the card is worth, but the money reaches your account in one to five business days. This is most useful if you have a card you will not use and need the cash more than the discount matters.

Using an ATM or debit card network to access gift card funds

Some open-loop gift cards can be used at ATMs to withdraw cash, though this is becoming less common. Check whether your card allows ATM withdrawals by logging into the issuer's website or calling the number on the back. If it does, you can withdraw cash at any ATM that accepts that card network (Visa, Mastercard, etc.), then deposit the cash into your checking account at your bank's ATM or branch.

ATM withdrawals usually charge a fee—typically $2 to $3 per transaction—charged by either the ATM operator or the card issuer. This fee comes out of the card's balance, so you will receive less cash than the card's full value. This method is useful only if you need when ready cash and the fee is acceptable.

Why banks do not accept gift cards as deposits

Banks process deposits through the Federal Reserve's clearing system, which requires accounts with routing and account numbers tied to a financial institution. A gift card has neither. It is a liability of the retailer or payment processor, not a bank. When you deposit a check or transfer money from another account, the bank can verify the funds exist in another account and move them. A gift card balance exists only in the issuer's system, with no connection to banking infrastructure.

This is also why you cannot write a check against a gift card or use it to open a new account. The card is a consumer product, not a financial account.

What happens if you try to deposit a physical gift card

If you attempt to deposit a physical gift card at an ATM or through mobile deposit, the machine will reject it. ATMs only accept checks and cash. Mobile deposit apps (which let you photograph checks) will reject an image of a gift card because it is not a negotiable instrument—it has no bank routing information and cannot be processed through the clearing system.

If you mail a gift card to your bank or try to deposit it at a branch, the teller will explain that they cannot process it and will return it to you. There is no way to force a gift card into the banking system because the two systems do not connect.

Frequently Asked Questions

Can I use a gift card to pay my checking account overdraft?

No. You would need to convert the gift card to cash or transfer it to your account first, then use that money to cover the overdraft. The gift card itself cannot be linked to your account balance.

What if my gift card has a very small balance left on it?

If the balance is under $5, most reseller services will not accept it. Your best option is to spend it at the retailer or, if the issuer allows, request a cash-out at the register. Some issuers will not cash out balances under $10.

Do I need to pay taxes on gift card cash-outs?

No. A gift card is not income—it is a transfer of value you already received. Cashing it out or spending it does not create a taxable event. The original gift itself may have tax implications for the giver, but not for you.

Can I deposit a digital gift card code into my bank account?

No. A digital code is the same as a physical card—it is a stored-value token, not money in a bank account. You must convert it using the same methods: transfer through the issuer's app (for open-loop cards), spend it at the retailer, or sell it to a reseller.

What is the fastest way to get gift card money into my checking account?

For open-loop cards (Visa, Mastercard, Amex), transferring through the issuer's app is fastest—usually one to three business days. For retailer cards, selling to a reseller like Raise takes one to five days but costs you a discount. Spending the card and depositing the cash savings is free but requires a purchase.