You cannot deposit a gift card directly into a bank account, but you can convert the balance to cash or move it to a linked payment account in most cases
A gift card is not a bank deposit. Your bank will not accept it as a deposit slip or check, and you cannot photograph it and use mobile deposit. The card itself holds a balance with the retailer or card issuer, not with your bank. However, you have several real paths to get that money into your account, and which one works depends on what type of gift card you hold.
The fastest route for most people is to spend the gift card at the retailer or use it to buy something you can resell. If you need the money in your bank account specifically, you can transfer the balance to a linked debit card, request a check from the issuer, or use a third-party service that buys gift cards for cash. Each method has different fees, timelines, and restrictions.
Key Takeaways
- Closed-loop gift cards (issued by a single retailer like Target or Starbucks) cannot be transferred to a bank account directly, but some retailers will issue a check for the remaining balance if you ask.
- Open-loop gift cards (Visa, Mastercard, or American Express branded) can sometimes be linked to a bank account or PayPal, allowing you to spend the balance like a debit card.
- Gift card resale websites and apps buy unused or partially used cards for cash, typically paying 50 to 90 percent of the card's face value, with payment sent to your bank account within days.
- Spending the gift card at the retailer and depositing your own cash is the simplest method if you have the option to shop there.
How closed-loop gift cards work and why they cannot be deposited
A closed-loop gift card is issued by a single business—Target, Whole Foods, Starbucks, Best Buy—and can only be spent at that retailer or its affiliates. The balance lives in the retailer's system, not in a bank. When you try to deposit it, your bank has no way to verify or transfer the funds because the money is not held by a financial institution.
Some retailers will convert the remaining balance to a check if you visit a store or call customer service. Target, for example, will issue a check for the remaining balance on a gift card if you request it in person at a store. Starbucks will not. The policy varies by company, so contact the retailer's customer service directly to ask whether they offer this option. If they do, expect the check to arrive by mail within one to two weeks.
If the retailer will not issue a check, your options are to spend the card at the retailer, sell it to a gift card resale service, or give it to someone else.
Open-loop gift cards and linking them to your bank account
An open-loop gift card is branded with a payment network logo—Visa, Mastercard, or American Express—and can be used anywhere that network is accepted. These cards sometimes allow you to link them to a bank account or digital wallet, which is the closest you can get to a direct deposit.
If your open-loop gift card was issued with a PIN or online account access, log in to the issuer's website or app and look for options to transfer the balance, link to PayPal, or add the card to a digital wallet like Apple Pay or Google Pay. Some cards allow you to transfer funds to a linked bank account, though this is less common than linking to a payment app. Check the card's terms or contact the issuer's customer service number (usually on the back of the card) to confirm what options are available.
If the card does not offer these features, you can still use it as a debit card to make purchases and then deposit your own cash into your bank account to replace the money you spent. This is not a direct transfer, but it accomplishes the same goal of getting funds into your account.
Selling your gift card for cash through resale services
Gift card resale websites and mobile apps buy unused or partially used cards and pay you cash, which they send to your bank account. The most established platforms include Raise, CardCash, and Decluttr. You photograph the card (or provide the card number and PIN if it is digital), list it for sale, and once a buyer purchases it, the platform sends payment to your bank account or PayPal account.
Payment amounts vary. Most platforms pay between 50 and 90 percent of the card's face value, depending on the retailer, how much balance remains, and current demand. A $100 Target gift card might sell for $85 to $95, while a $100 card from a less popular retailer might sell for $60 to $75. The platform takes a commission, usually 5 to 15 percent, which is already factored into the price you see when you list the card.
Timing depends on the platform and how quickly a buyer purchases your card. Some sales complete within hours; others take days or weeks. Once sold, payment typically arrives in your bank account within three to five business days. Read the platform's terms carefully before listing, as some require you to verify the card's balance and condition, and disputes can delay payment.
Using a gift card to make a purchase and depositing cash instead
The simplest method, if it fits your situation, is to spend the gift card at the retailer and then deposit your own cash into your bank account. This does not move the gift card balance directly into your account, but it frees up cash you would have spent anyway.
For example, if you have a $50 Whole Foods gift card and you were planning to buy groceries this week, use the gift card to pay for your groceries. Then deposit $50 of your own cash into your bank account. The net effect is the same: your account balance increases by $50, and the gift card is spent.
This method works best if the retailer is somewhere you shop regularly and the card balance is not so small that it feels impractical to use. If the card is for a store you never visit or the balance is very low, resale or requesting a check are better options.
What happens if your gift card has a low balance or is partially used
A gift card with $3 remaining or a card you have already spent $47 of a $50 balance on can still be sold, checked for a refund, or used to buy something small. Resale platforms accept partially used cards, though they will pay less for a card with a low remaining balance. A $10 remaining balance might sell for $5 to $7.
If the balance is very small—under $5—most resale platforms will not accept it because the commission makes the transaction unprofitable for both sides. In that case, your best option is to spend the remaining balance at the retailer, even if it is just a coffee or a small item, or contact the retailer to ask whether they will issue a check for the remainder.
Fees and timelines for each method
| Method | Fees | Timeline to Bank Account | Best For |
|---|---|---|---|
| Retailer check (if available) | None | 7 to 14 days by mail | Closed-loop cards with full or high balance |
| Resale platform (Raise, CardCash) | 5 to 15% commission (built into price) | 3 to 5 days after sale | Any card type; fastest cash conversion |
| Link to PayPal or digital wallet | None (if available) | when ready to wallet; varies to bank | Open-loop cards with account access |
| Spend and deposit your own cash | None | Same day (if mobile deposit) | Cards for retailers you shop at regularly |
Frequently Asked Questions
Can I use a gift card to pay a credit card bill and then deposit cash?
No. Using a gift card to pay a credit card bill does not move money into your bank account—it moves money out of the card issuer's system into your credit card company. You would still need to deposit cash from another source to increase your bank account balance. This also typically incurs a cash advance fee.
What if I lost the gift card or do not have the PIN?
Contact the retailer or card issuer when ready. If you have the receipt or original purchase information, they may be able to look up the balance and issue a replacement card or check. Without proof of purchase, recovery is unlikely. Resale platforms require the card number and PIN, so a lost card cannot be sold through them.
Do I have to pay taxes on gift card resale income?
Selling a gift card for less than its face value is not taxable income—you are selling an asset at a loss. However, if you somehow sold a gift card for more than face value (rare), that gain could be taxable. Keep records of the sale price if you resell multiple cards. When in doubt, consult a tax professional.
Can I deposit a digital gift card the same way as a physical one?
Digital gift cards follow the same rules as physical cards. Closed-loop digital cards cannot be deposited directly. Open-loop digital cards may allow you to link to PayPal or a digital wallet. Digital cards can be sold on resale platforms, though you will need to provide the card number and PIN instead of photographing a physical card.
What if the gift card issuer goes out of business?
If a retailer closes, gift cards issued by that retailer typically become worthless unless the company is acquired and the new owner honors old cards. Resale platforms may still accept the card if there is any balance remaining, but you will likely receive very little. Check the retailer's website or call their customer service to confirm whether the card is still valid before trying to sell it.