Direct transfers from gift cards to bank accounts are not possible

You cannot move money directly from a gift card into a bank account. Gift cards and bank accounts operate on separate payment networks, and card issuers do not allow that kind of transfer. What you can do instead is spend the gift card balance in ways that put money back into your bank account—or convert the card's value into cash you can deposit yourself.

The method that works depends on what type of gift card you have, whether it has a remaining balance, and how much friction you're willing to accept. Some routes are nearly when ready. Others take a few days or involve a small loss of value.

Key Takeaways

  • You cannot transfer a gift card balance directly to a bank account, but you can spend the card in ways that return money to your account.
  • Peer-to-peer payment apps like PayPal, Venmo, and Cash App let you load a gift card and send the balance to your bank, though some charge a fee or take a few days to settle.
  • Selling the gift card on a marketplace like CardCash or Raise converts it to cash, but you typically receive 80 to 95 percent of the card's face value.
  • Using the gift card to buy something you would have bought anyway, then returning it for a refund to your original payment method, moves the money back to your bank without loss.
  • Some gift cards issued by banks (like Visa or Mastercard gift cards) can be registered and used like debit cards, making it easier to spend down the balance strategically.

Using payment apps to move the balance

PayPal, Venmo, Cash App, and similar peer-to-peer services let you add a gift card as a payment method, then send money to your own bank account. The process is straightforward: link the gift card in the app's wallet, transfer the balance to a contact (or to yourself if the app allows it), and then move that money to your bank account.

The catch is timing and fees. PayPal and Venmo typically take one to three business days to move money from the app to your bank, and some charge a small fee (usually 1 to 2 percent) for when ready transfers. Cash App is often faster—sometimes within minutes—but also charges for speed. If you are not in a hurry, the free standard transfer is usually available and costs nothing.

Not all gift cards work with all apps. Visa and Mastercard gift cards are the easiest to add. Store-specific cards (Target, Amazon, Best Buy) usually cannot be linked to these apps directly, though you can sometimes use them to buy something and then sell that item for cash.

Selling the gift card on a marketplace

Websites like CardCash, Raise, and Decluttr buy unused gift cards at a discount and pay you through bank transfer, PayPal, or check. The discount varies by card type and current demand—popular retailers like Amazon and Target usually fetch 90 to 95 percent of face value, while less common cards might go for 70 to 85 percent.

The process takes a few days. You list the card (or provide the code), the marketplace verifies the balance, and once a buyer purchases it, the money moves to your account. Most sites deposit funds within one to five business days. You lose some value, but you get cash in your bank account without spending the card yourself.

This route makes sense if you have a card you do not plan to use, or if the card is for a store where you rarely shop. It is less useful if you were going to spend the money anyway, because the discount eats into what you get back.

Buying something returnable and getting a refund

If the gift card is for a retailer where you shop regularly, use it to buy something you would have purchased anyway, then return it. The refund goes back to your original payment method—which, if you used a debit card or bank account to buy the gift card in the first place, means the money returns to your bank.

This method has no loss of value and no fees. The downside is that it requires an actual purchase and return, which takes time and only works if the item is returnable within the store's window (usually 30 to 90 days). It also only works if you funded the gift card with your own bank account to begin with—if someone else gave it to you, the refund goes to their original payment method, not yours.

Bank-issued gift cards and debit card alternatives

Visa and Mastercard gift cards issued by banks work differently from store gift cards. Once registered with your name and address, they function like debit cards and can be used anywhere those networks are accepted. You can use them to buy things online, in stores, or to transfer money through payment apps more easily than store-specific cards.

Some banks also offer their own gift cards that link directly to your account. If you have one of these, check your bank's app or website—you may be able to move the balance directly to your checking account without a third party involved. Call your bank's customer service line to ask whether this option exists for your specific card.

What does not work

You cannot withdraw a gift card balance as cash at an ATM unless the card is a bank-issued debit card that has been registered and linked to a bank account. You cannot call the gift card issuer and ask them to deposit the balance into your bank account. You cannot use a gift card to pay off a credit card balance and expect that to move money to your bank (it moves it to your credit card company instead).

Some gift card holders claim that loading the card onto a cryptocurrency exchange or money transfer service will work, but this is unreliable and often violates the card's terms of service. Stick to the methods above, which are straightforward and carry no risk of the card being frozen or the transaction being reversed.

Frequently Asked Questions

Can I use a gift card to pay a bill and have the payment count as a bank transfer?

No. When you use a gift card to pay a bill, the payment goes to the biller, not to your bank account. The money leaves the gift card but does not arrive in your bank. If you want to move money to your bank, use one of the methods above first (payment app, marketplace sale, or purchase-and-return), then pay the bill from your bank account.

What if the gift card has a small balance left—like $2.47?

Small balances are hard to sell on marketplaces because the discount makes them worthless. Your best option is to spend it: use it toward a purchase you were going to make anyway, combine it with another payment method, or load it into a payment app and send it to your bank if the app allows transfers under $5. Some retailers also let you donate remaining balances to charity, which may be tax-deductible.

Do payment apps charge a fee every time I transfer money to my bank?

Most apps offer a free standard transfer (one to three business days) and charge only if you choose when ready transfer. PayPal's when ready transfer is usually 1 to 2 percent. Venmo charges a flat fee for when ready transfers. Cash App's standard transfer is free. Check your app's fee schedule before you transfer, because the fee comes out of the amount you receive.

If I sell a gift card, do I have to report it as income?

Generally, no. Selling a gift card for less than its face value is a loss, not income. If you sell it for more than you paid for it (which is rare), that gain might be taxable, but most people sell at a discount. Keep records of the sale in case you are audited, but you do not need to report it on your tax return in most cases. If you are unsure, ask a tax professional about your specific situation.

Can I transfer a gift card balance to someone else's bank account?

Not directly. You would need to convert the gift card to cash or move it through a payment app first. If you use a payment app, you can send money to another person's account, but that person would then need to transfer it to their own bank. The simplest option is to give the gift card itself to the other person, or sell it and give them the cash.