Most gift card balances cannot be transferred directly to a bank account, but several workarounds exist depending on the card type and issuer

A gift card is a stored-value product, not a bank account. The money sits in a merchant's or payment network's system, not in your personal financial account. Banks do not have a mechanism to pull funds from a gift card into your checking or savings account the way they pull from another bank. What you can do depends on whether the card is a closed-loop card (tied to one store) or an open-loop card (Visa, Mastercard, American Express), and whether the issuer has built in a transfer feature.

If you have a Visa, Mastercard, or American Express gift card with remaining balance, you may be able to transfer that balance to a bank account through a cash advance, a peer-to-peer payment app, or by spending the balance down and depositing cash. Closed-loop cards—like a Target or Starbucks gift card—have no direct transfer option, but you can convert them to cash through resale platforms or by using them to buy items you then return for cash refunds.

Key Takeaways

  • Open-loop gift cards (Visa, Mastercard, Amex) sometimes allow balance transfers to bank accounts through the card issuer's website or app, but this feature is not standard across all issuers.
  • Closed-loop cards (store-specific) have no direct transfer option, but you can sell them on resale platforms like CardCash or Raise, which pay via bank transfer or PayPal.
  • Cash advances on gift cards through ATMs or banks typically charge fees of 3 to 5 percent and may not work if the card lacks a PIN or is not set up for cash withdrawal.
  • Peer-to-peer payment apps like PayPal or Venmo can receive funds from some gift cards if you link the card as a payment method, though the money lands in the app account first, not directly in your bank.
  • Returning items purchased with a gift card for cash refunds is legal but may trigger fraud alerts if done repeatedly or in large amounts.

How open-loop gift cards differ from store cards

An open-loop gift card carries a Visa, Mastercard, or American Express logo and works anywhere that brand is accepted. These cards are issued by banks or payment processors, not by retailers. Because they function like prepaid debit cards, some issuers have built transfer features into their systems.

A closed-loop gift card is issued by a specific retailer—Target, Starbucks, Best Buy, Amazon—and can only be spent at that business. These cards are not connected to the banking system in the same way. The retailer holds the balance in their own accounting system, not through a payment network. This is why transfer options are limited.

The distinction matters because open-loop cards sit on payment networks that already move money between accounts. Closed-loop cards do not. If you have an open-loop card, check the issuer's website or call the customer service number on the back to see whether a balance transfer feature exists. If you have a closed-loop card, you will need to use one of the conversion methods below.

Transferring balance directly from open-loop cards

Some banks and payment processors that issue open-loop gift cards allow you to transfer the remaining balance to a linked bank account. This is not a universal feature—it depends on the specific issuer and the card's terms.

To check whether your card supports this, log into the issuer's website or mobile app using the card number and PIN. Look for options labeled "transfer balance," "move funds," or "cash out." If the option exists, you will typically be asked to provide your bank account details (routing number and account number) and confirm the transfer. The process usually takes one to three business days.

If no transfer option appears in the app or website, call the customer service number on the back of the card and ask directly. Some issuers offer this feature only to certain cardholders or only under specific conditions. Be prepared to provide the card number, your name, and the last four digits of your Social Security number for verification.

Using ATMs and cash advances to withdraw funds

If your open-loop gift card has a PIN, you may be able to withdraw cash at an ATM. This works the same way as withdrawing from a debit card, but most gift card issuers charge a fee—typically 2 to 5 dollars per transaction, or a percentage of the amount withdrawn.

To use an ATM, you need two things: a PIN and a card that supports cash withdrawal. Not all gift cards are set up for ATM access. Check the card's terms or contact the issuer to confirm. If the card does support it, visit any ATM that accepts the card's network (Visa, Mastercard, or Amex), insert the card, enter your PIN, and select "withdrawal." The cash will be dispensed when ready, and you can then deposit it into your bank account at your bank's ATM or branch.

Some banks also allow you to request a cash advance at a teller window using your gift card. Fees explore here too, and the bank may decline if the card is not set up for cash advances. This route is slower than an ATM but sometimes cheaper if the bank charges a flat fee rather than a percentage.

Selling closed-loop gift cards for bank transfer

If you have a store-specific gift card with balance remaining, the fastest way to convert it to bank funds is to sell it on a gift card resale platform. These sites connect buyers and sellers of unused or partially used gift cards.

The major platforms are CardCash, Raise, Decluttr, and Gameflip. Each works slightly differently, but the basic process is the same: you list your card, a buyer purchases it, and you receive payment via bank transfer, PayPal, or check.

Expect to receive 70 to 95 percent of the card's face value, depending on the retailer and current demand. Popular retailers like Target, Walmart, and Amazon cards sell quickly and at higher percentages. Niche or regional cards may take longer to sell or command lower prices. The platform typically takes a commission of 5 to 15 percent, which is deducted from what you receive.

The process usually takes three to seven business days from the time a buyer purchases your card until you receive payment. You will need to provide the card number, PIN (if applicable), and sometimes a photo of the physical card. Be honest about the remaining balance—platforms verify cards before releasing payment to buyers, and misrepresenting the balance can result in account suspension.

Using peer-to-peer payment apps as an intermediate step

Some gift cards can be linked as a payment method in peer-to-peer payment apps like PayPal, Venmo, or Square Cash. This does not transfer the balance directly to your bank account, but it moves the money into an app account that you can then transfer to your bank.

To do this, open the app, go to the payment method or wallet section, and add your gift card as a card. Then send money to yourself (if the app allows) or to a trusted contact who can send it back. Some apps charge a fee for receiving money from a card, typically 2 to 3 percent. Once the money is in your app account, you can transfer it to your linked bank account, which usually takes one to three business days.

This method works best for open-loop cards. Closed-loop cards may not be accepted by these apps, or the app may flag the transaction as unusual. It is also slower and more expensive than direct transfer or ATM withdrawal, so use it only if other options are not available.

Returning purchases for cash refunds

If you have a closed-loop gift card, you can use it to buy items and then return those items for a cash refund. This converts the gift card balance into cash that you can deposit into your bank account.

The process is straightforward: buy something at the store using the gift card, keep the receipt, and return the item within the store's return window (usually 30 to 90 days). Request a cash refund rather than store credit. The store will refund the amount to the original payment method—in this case, the gift card—or, if you ask, directly to you as cash.

Be aware that retailers track return patterns. If you return items frequently or in large amounts, the store may flag your account or refuse future returns. Some stores require a receipt and the item to be in original condition. If you are returning items specifically to convert a gift card to cash, keep the returns spread out over time and return items that are genuinely returnable, not damaged or used.

Frequently Asked Questions

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

Not directly. You cannot initiate a transfer from a gift card to another person's bank account through the card issuer. However, you can sell the card on a resale platform and have the payment sent to that person's PayPal or bank account if they set up the account. Alternatively, you can use the card to buy a gift card in their name and send that to them.

What happens if my gift card has a small balance left—like five dollars?

Small balances are often not worth the effort to transfer. Resale platforms may not accept cards with very low balances, and ATM fees could exceed the remaining amount. Your best option is usually to spend the balance at the retailer or use it with another payment method to complete a purchase.

Do I need to report gift card transfers to the IRS?

No. Transferring your own gift card balance is not a taxable event. You are moving money you already own, not receiving income. If you sell a gift card for more than its face value (rare), the profit would be taxable, but standard resale at a discount is not.

Can I transfer a gift card balance if the card is expired?

It depends on the issuer and the card type. Federal law requires most gift cards to remain valid for at least five years, but some states require longer. Even after expiration, many issuers will honor the balance if you contact customer service. Call the issuer before assuming the card is worthless. Resale platforms typically will not accept expired cards.

What if the gift card issuer goes out of business?

If the issuer is a retailer, your balance is usually protected by state law. If the issuer is a bank or payment processor, your balance may be insured under the FDIC up to 250,000 dollars, depending on how the account is structured. Contact the issuer when ready if you suspect they are closing. Move the balance to your bank account or spend it as soon as possible.