You cannot deposit a gift card directly into a bank account the way you would a check or cash
A gift card is not a payment instrument your bank recognizes. When you walk into a branch or use your bank's app, the deposit system expects a check, a transfer from another account, or cash. A physical gift card has no routing number, account number, or way to connect to the banking network. Your bank's deposit machine will reject it. Your app will have no field for it.
What you can do instead depends on what kind of gift card you have and how much friction you are willing to accept. Some routes move the money quickly and cleanly. Others require you to spend the card's balance first, then deposit the proceeds. A few involve third-party services that take a cut.
Key Takeaways
- Gift cards cannot be deposited directly into a bank account because they are not recognized by banking systems.
- Visa, Mastercard, and American Express gift cards can be used to buy a money order at a grocery store or post office, which you can then deposit.
- Store gift cards must be spent at the retailer first; the cash back from that purchase can then be deposited.
- Some third-party apps will buy your gift card balance at a discount and transfer the money to your bank account, but you lose 5 to 15 percent of the value.
- The fastest and cleanest method is to use a network gift card (Visa, Mastercard, or Amex) to buy a money order, which takes one trip and no fees.
Using a network gift card to buy a money order
If your gift card is a Visa, Mastercard, or American Express gift card — not a store-branded card — you can use it to purchase a money order at a grocery store, post office, or Walmart. A money order is a paper payment instrument that your bank will accept as a deposit.
The process is straightforward: go to the customer service desk or money services counter, tell them you want a money order, hand them the gift card, and they will charge the card and give you the money order. You then deposit the money order at your bank the same way you would a check — in person, through an ATM, or via mobile deposit if your bank supports it.
The cost is low. Money orders typically cost between $0.50 and $2.00 depending on the location. There are no other fees. The money order clears into your account within one to three business days, the same as a check.
Getting cash back from a store gift card purchase
If you have a store-branded gift card — Target, Best Buy, Amazon, or any retailer — you cannot use it directly to buy a money order. Instead, you must spend the card's balance at that store first, then convert the proceeds to cash or a deposit.
The simplest approach is to buy something at the store, pay with the gift card, and ask for the difference in cash if the purchase is less than the card's balance. For example, if you have a $50 Target gift card and buy a $30 item, you can ask for $20 cash back. You then deposit that cash at your bank.
If you want to convert the entire balance without buying anything you need, buy a gift card from another retailer that you know you will use, or buy a Visa or Mastercard gift card sold at that store. You can then use that card to buy a money order as described above.
Using a gift card resale or exchange service
Several third-party platforms will buy your gift card balance from you and send the money to your bank account. Services like Raise, CardCash, and Gameflip operate this way. You list your gift card on their platform, a buyer purchases it, and the service deposits the proceeds into your bank account.
The trade-off is a loss of value. These platforms typically pay 70 to 95 percent of the card's face value, depending on the card type and current demand. A $100 gift card might net you $85 to $95. The discount reflects the platform's commission and the risk they take on resale.
The timeline is also longer. After you list the card, it may take several days to a week for a buyer to purchase it. Once sold, the money usually arrives in your bank account within three to five business days. This method works if you have time and are willing to accept a smaller deposit in exchange for not having to spend the card's balance yourself.
Converting a gift card through a payment app
Some payment apps like PayPal, Venmo, or Square Cash allow you to link a gift card as a payment method. You can then use that card to send money to yourself or to another account you control. However, this does not move the money into your bank account directly — it moves it into the app's wallet, from which you must then transfer it to your bank.
This route adds extra steps without clear benefit. You are better off using a money order or a resale service. The only exception is if you already use one of these apps regularly and the gift card is small enough that the extra steps feel worth avoiding a separate trip.
Why banks do not accept gift cards as deposits
Gift cards are not connected to the banking system. When you deposit a check, your bank reads the routing number and account number to know where to send the money. When you transfer funds electronically, the system uses account numbers and bank codes. A gift card has neither. It is a proprietary payment system run by the card issuer or the retailer.
From the bank's perspective, a gift card is merchandise, not money. Accepting it as a deposit would require the bank to verify the balance, confirm the card has not been used, and then convert it to actual funds — a process that is more expensive than the value of most gift cards. It is simpler for everyone if you convert the card yourself first.
Comparing your options by speed and cost
| Method | Card Type | Time to Bank Account | Cost or Loss | Steps |
|---|---|---|---|---|
| Money order | Visa, Mastercard, Amex | 1–3 business days | $0.50–$2.00 | Buy money order, deposit it |
| Cash back at store | Store-branded | Same day | None | Buy item, get cash, deposit cash |
| Resale service | Any | 3–7 business days | 5–30% of balance | List card, wait for buyer, receive transfer |
| Payment app | Any | 1–3 business days | None | Link card, send to self, transfer to bank |
Frequently Asked Questions
Can I deposit a Visa gift card directly through my bank's mobile app?
No. Mobile deposit requires a check or a transfer from another bank account. A gift card has no routing or account number, so the app will not recognize it. You must convert it to a money order or cash first.
What if my gift card has a small balance left on it?
Small balances are harder to convert. Money order minimums are usually $1, so you can buy one for a $5 card, but the fee will eat most of the value. A resale service may not accept very low balances. Your best option is to spend the remaining balance at the retailer or use it to buy something small you need.
Do I lose money if I use a money order?
You lose only the money order fee, which is typically $0.50 to $2.00. This is much less than a resale service, which takes 5 to 30 percent of the balance. A money order is the cheapest conversion method for network gift cards.
Can I deposit a gift card if I sign the back of it?
No. Signing a gift card does not make it a check or a negotiable instrument. Banks do not accept gift cards as deposits under any circumstances. You must convert it first.
What happens if I try to deposit a gift card at an ATM?
The ATM will reject it. Gift card readers and check scanners are different systems. The ATM has no way to read a gift card's balance or connect it to your account.