You cannot deposit a gift card directly into a checking account
A gift card is not a check, a transfer, or a direct deposit. Your bank's deposit system—whether you use an ATM, mobile app, or teller—accepts only paper checks, cash, and electronic transfers from other accounts. A gift card is a stored-value card issued by a retailer or payment network, and it lives in a separate system from your bank account.
To move money from a gift card into your checking account, you need an intermediate step. You convert the gift card into cash or a bank transfer, then deposit that into your account. The method depends on what kind of gift card you have and which conversion option is fastest for you.
Key Takeaways
- Gift cards cannot be deposited directly; you must first convert them to cash or initiate a bank transfer.
- Visa, Mastercard, and American Express gift cards can be transferred to a linked bank account through their issuer's website or app.
- Retailer gift cards (Target, Amazon, Walmart) require you to spend them at that retailer or sell them to a third party, then deposit the proceeds.
- Converting a gift card to cash at a store or through a cash-back transaction takes minutes; transferring to your bank account takes one to three business days.
- Selling a gift card online through a resale platform typically nets you 80 to 95 percent of the card's face value.
Transfer a network gift card directly to your bank account
If your gift card is issued by Visa, Mastercard, American Express, or Discover, you can often move the balance directly into a linked checking account. These are network gift cards—they work like prepaid debit cards and are issued by the payment network itself, not a retailer.
Log into the card issuer's website or mobile app using the card number and PIN. Look for an option labeled "Transfer Balance," "Move Funds," or "Link Bank Account." You will enter your checking account number and routing number. The issuer will verify the account (usually by depositing two small test amounts that you confirm), then you authorize the transfer. The money typically arrives in one to three business days.
Not all network gift cards allow this. Some are issued with restrictions that prevent transfers. Check the card's terms or call the customer service number on the back before you start. If the card does not allow transfers, you will need to use it as a debit card to make purchases, then use another method to move money into your checking account.
Spend the gift card and deposit the cash savings
If you have a retailer gift card (Amazon, Target, Walmart, Best Buy) or a network card that does not allow transfers, you can use it to pay for something you would buy anyway, then deposit the cash you save into your checking account.
For example: you have a $50 Target gift card and need to buy groceries. You use the gift card at Target to cover part of the purchase, then pay the remaining balance with your debit card or cash. The cash you did not spend—or the money you would have spent if you had not used the gift card—is now available to deposit. This does not create new money, but it frees up cash in your wallet that you can deposit.
This method works best if you were already planning to shop at that retailer. If you are not a regular customer, you may end up with a partial balance left on the card that is difficult to use.
Sell the gift card for cash or a bank transfer
A gift card resale platform buys unused gift cards from you at a discount and pays you through bank transfer, PayPal, or check. The most common platforms are Raise, CardCash, and Decluttr. You list the card, a buyer purchases it, and you receive payment.
The payout is typically 80 to 95 percent of the card's face value, depending on the retailer and current demand. A $100 Target gift card might sell for $85 to $95. The process takes two to five business days from the time a buyer purchases your card until the money reaches your account.
You will need to provide proof that the card works—usually by entering the card number and PIN into the platform's system so they can verify the balance. Once verified, the card is locked and transferred to the buyer. You receive payment to your bank account, PayPal account, or as a check, depending on the platform's options.
Resale platforms are most useful for gift cards you will not use. If you have a $200 Sephora card but never shop there, selling it for $170 to $190 is faster than trying to spend it.
Use a gift card to withdraw cash at a store
Some retailers allow you to use a gift card to make a purchase, then request cash back on the transaction—similar to using a debit card at a grocery store checkout. The retailer subtracts the purchase amount and the cash-back amount from the gift card balance and hands you the cash.
This works only at retailers with physical locations and point-of-sale systems that support cash back. Target, Walmart, and Best Buy typically allow it; smaller retailers may not. You will need to make a small purchase (even $1 to $5) to trigger the cash-back option. Once you have the cash, you can deposit it into your checking account at an ATM or teller.
Call the retailer's customer service line or ask at the customer service desk before you visit to confirm they offer cash back on gift cards. Policies vary by location.
Load the gift card balance onto a digital wallet
Some gift cards can be added to a digital payment app like Apple Pay, Google Pay, or PayPal. Once loaded, you can use the app to send money to your bank account or to another person's account. This is useful if the gift card issuer does not allow direct bank transfers but does allow digital wallet integration.
Open the digital wallet app, select "Add Card," and enter the gift card number and PIN. The app will verify the balance. Once added, you can use the wallet to make purchases, and some apps allow you to transfer the balance to a linked bank account. The process varies by app and card type, so check the app's help section or contact the gift card issuer to confirm this option is available.
Timeline and what to expect at each step
| Method | Time to Complete | Amount You Receive | Best For |
|---|---|---|---|
| Network card direct transfer | 1–3 business days | 100% of balance | Visa, Mastercard, Amex gift cards you won't use |
| Spend and deposit cash savings | Same day | 100% of balance (as cash) | Retailers you shop at regularly |
| Resale platform | 2–5 business days | 80–95% of balance | Gift cards you won't use; need quick conversion |
| Cash back at store | Same day | 100% of balance (as cash) | Retailers with physical locations nearby |
| Digital wallet transfer | 1–3 business days | 100% of balance | Cards that support wallet integration |
Frequently Asked Questions
Can I deposit a gift card at an ATM?
No. ATMs accept only cash and checks. A gift card is neither. You must first convert the gift card to cash or initiate a bank transfer through another method, then deposit the cash or wait for the transfer to arrive in your account.
What if my gift card has a small balance left on it?
Small balances ($5 or less) are difficult to sell on resale platforms because the payout is too low. Your best options are to spend it at the retailer, combine it with another payment method at checkout, or contact the issuer to ask if they offer a cash-out option for low balances.
Do I pay taxes on gift card sales?
Selling a gift card for less than its face value is not a taxable event for you. You are not earning income; you are converting an asset to cash at a loss. Keep records of the sale in case you are asked, but you do not report it to the IRS.
Which resale platform pays the fastest?
Raise and CardCash both process payments within two to five business days once a buyer purchases your card. PayPal transfers are usually faster than bank transfers. Check each platform's current processing times before you list, as they vary.
Can I transfer a retailer gift card balance to another person's bank account?
No. Retailer gift cards are tied to that retailer's system and cannot be transferred to a bank account. You can sell the card on a resale platform, give the physical card to someone else, or spend it yourself and give them cash instead.