What you can and cannot do with a gift card

You cannot deposit a gift card directly into a bank account the way you would deposit a check. A gift card is a stored-value product — the money lives on the card itself, not in a bank system. Your bank has no way to read it or pull funds from it. But you have several real ways to move that money into your account, depending on what kind of gift card you have and what the issuer allows.

The method that works depends on whether the card is a closed-loop card (issued by a specific retailer like Target or Starbucks) or an open-loop card (issued by Visa, Mastercard, or American Express). Open-loop cards are far more flexible because they work anywhere those payment networks operate. Closed-loop cards are locked to one merchant and have fewer options.

Key Takeaways

  • Open-loop gift cards (Visa, Mastercard, Amex) can be transferred to your bank account through a money transfer app, but closed-loop cards (retailer-specific) cannot.
  • The most direct method is to use a peer-to-peer payment app like PayPal or Square Cash to send the balance to yourself, then withdraw to your bank account.
  • You can also spend the card down to zero and deposit the cash proceeds, though this requires a purchase and a trip to convert the card to cash.
  • Some open-loop cards allow you to set up a linked bank account in the card's own app, which lets you transfer the balance directly.
  • Closed-loop retailer cards have no built-in transfer option — your only path is to spend the balance or sell the card on a resale platform.

Open-loop cards: Visa, Mastercard, and American Express gift cards

If your gift card is branded with Visa, Mastercard, or American Express, you have the most options. These cards function like debit cards and can be used anywhere those networks are accepted. Many of them also allow you to link a bank account directly in the card's mobile app or online portal.

Check the back of the card or visit the issuer's website to see if the card has an app. If it does, log in with the card number and look for a "transfer" or "move money" option. Some cards let you transfer your full balance to a linked bank account in one or two business days. If the card does not offer this feature, move to the peer-to-peer method below.

The peer-to-peer route works with almost any open-loop card. Add the card as a payment method in PayPal, Square Cash, Venmo, or a similar app. Send the full balance to your own account (or to a trusted contact who will send it back to you). Then withdraw from that app to your bank account. The card issuer sees this as a normal purchase, and the money lands in your bank account within one to three business days depending on the app and your bank.

Closed-loop retailer gift cards: Target, Amazon, Starbucks, and others

Retailer-specific gift cards cannot be transferred to a bank account because they are not connected to a payment network. The balance exists only within that retailer's system. You have two realistic paths: spend the card and convert the proceeds to cash, or sell the card on a resale platform.

The spend-and-convert method requires you to make a purchase at the retailer, pay with a debit card or other payment method for the difference if the purchase exceeds the card balance, and then return the item for a refund to your bank account. This works but is inefficient and depends on the retailer accepting returns. Some retailers also have restrictions on refunding to a different payment method than the original purchase.

The resale route is faster if you do not want to spend the balance. Websites like CardCash, Raise, and Decluttr buy gift cards at a discount (typically 80 to 95 percent of face value, depending on the retailer and current demand). You list the card, they verify the balance, and they send you payment via bank transfer or PayPal. The process usually takes three to seven business days from listing to payment.

How to check your card type and issuer

Look at the front of the card. If it shows a Visa, Mastercard, or American Express logo, it is an open-loop card and you can use the transfer methods above. If the card only shows the retailer's name and logo — for example, a Target card with no payment network logo — it is closed-loop and you will need to spend it or resell it.

If you are unsure, visit the retailer's website or call the customer service number on the back of the card and ask whether the card can be transferred to a bank account. They will tell you directly. You can also check the card's terms and conditions, which usually appear on the back or in a pamphlet that came with the card.

Timing and fees to expect

Bank transfers from open-loop card apps typically take one to three business days. Peer-to-peer transfers through PayPal or similar apps may be when ready to your PayPal balance but take an additional one to three business days to reach your bank account. Some apps charge a small fee (usually $0.25 to $1.50) to transfer to a bank account; check the app's fee schedule before you transfer.

Resale platforms like CardCash charge a processing fee that is already factored into the price they offer you. If a card has a $100 balance and they offer you $85, that $15 difference covers their fee and profit. No additional fee is charged to you at payout. Bank transfers from resale sites usually take three to seven business days.

What happens if the card has a small balance left

If your card has only a few dollars remaining, the resale route may not be worth it — many platforms have a minimum balance requirement (often $5 to $10) and will reject cards below that threshold. In that case, spend the remaining balance at the retailer or use it as a payment method in a peer-to-peer app to move it to your account.

For open-loop cards with a low balance, the peer-to-peer method is usually fastest. Add the card to PayPal or Venmo, send the balance to yourself, and withdraw to your bank account. The entire process takes two to four business days and costs nothing if the app does not charge a transfer fee.

Frequently Asked Questions

Can I transfer a retailer gift card balance to another person's bank account?

No. Closed-loop retailer cards cannot be transferred to any bank account. You can resell the card on a platform like Raise or CardCash, and they will pay you, but the balance itself stays on the card until it is spent. The buyer receives the physical card or the card number and PIN.

What if my open-loop gift card does not have an app or transfer option?

Use a peer-to-peer payment app. Add the card as a payment method in PayPal, Venmo, or Square Cash, send the balance to your own account, and then withdraw to your bank account. This works with any Visa, Mastercard, or American Express card, even if the issuer does not offer a dedicated transfer feature.

Do I have to pay taxes on money I transfer from a gift card to my bank account?

No. A gift card is your own money — someone else paid for it, but it is not income to you. Transferring it to your bank account is not a taxable event. You only owe taxes if you later earn interest on that money in your bank account, which is typically minimal.

Will transferring a gift card balance hurt my credit score?

No. Gift card transfers do not appear on your credit report and do not affect your credit score. They are treated as normal purchases or transfers by the payment networks and do not create any debt or credit inquiry.

Can I deposit a gift card at an ATM?

No. ATMs only accept checks and cash. Gift cards cannot be deposited through an ATM or at a bank teller window. You must use one of the methods described above: transfer through an app, resale, or spending the balance.