Most banks will not let you deposit a gift card itself, but you have several ways to turn a gift card into money that reaches your account
You cannot walk into a bank and deposit a physical gift card the way you would a check. Banks do not accept gift cards as deposits because they are not negotiable instruments—they are not checks, cash, or documents that transfer funds. However, you can convert a gift card to cash or a bank transfer through a few different routes, and some are faster and cheaper than others.
The method that works depends on what kind of gift card you have, whether you want cash or a bank deposit, and how much you are willing to pay in fees. Some routes are free. Others cost a percentage of the card's value. A few take minutes; others take several business days.
Key Takeaways
- You cannot deposit a gift card directly into a bank account, but you can convert it to cash or a digital transfer through a resale platform, a cash-out service, or by spending it strategically.
- Resale platforms like CardCash and Raise let you sell gift cards for 70 to 95 percent of face value, with funds reaching your bank account in three to five business days.
- Cash-out services like Raise when ready and PayPal's gift card conversion charge a percentage fee (usually 5 to 15 percent) but deposit money the same day or next business day.
- Using a gift card to buy something you would buy anyway, then returning it for a refund to your original payment method, is free but only works if the retailer allows returns.
- Visa and Mastercard gift cards can sometimes be added to digital wallets like Apple Pay or Google Pay and used like a debit card, but this does not put money in your bank account.
Selling a gift card through a resale marketplace
Resale platforms like CardCash, Raise, and Decluttr buy unused gift cards from you at a discount. You list the card, a buyer purchases it, you ship the card or provide the code, and the platform deposits the money into your bank account. This is the most common route for converting a gift card to cash.
The amount you receive depends on demand for that retailer's card. Popular retailers like Amazon, Target, and Walmart typically sell for 85 to 95 percent of face value. Less common retailers or seasonal cards may sell for 70 to 80 percent. You set the price you want, and the sale completes when a buyer accepts it.
The timeline is usually three to five business days from the time you ship the card or provide the code until the money lands in your account. Some platforms hold the funds briefly after the buyer confirms receipt, so the full process can stretch to a week. Check the platform's terms before you list—some require you to ship the physical card, while others accept digital codes.
Using a gift card cash-out service
Services like Raise when ready, PayPal's gift card converter, and Cardtonic convert a gift card to cash or a bank deposit when ready, but they charge a fee. The fee is usually 5 to 15 percent of the card's value, depending on the retailer and the service.
The process is fast: you enter the gift card number and PIN, the service verifies the balance, and the money is deposited to your bank account the same day or the next business day. You do not have to wait for a buyer or ship anything. The tradeoff is that you lose a percentage of the card's value to the fee.
These services work best when you need cash quickly and the fee is worth the speed. If you can wait a week and do not mind the extra step of listing the card, a resale platform usually gives you more money back.
Spending the gift card and requesting a refund
If the gift card is for a retailer where you shop regularly, you can use it to buy something you would purchase anyway, then return the item for a refund to your original payment method. This is free and puts money back into your account, but it only works if the retailer allows returns and if you have something you actually want to buy.
The catch is that many retailers will refund to the original payment method only if you return within a set window—usually 30 to 90 days. Some will refund to store credit instead of cash. And if you buy something and return it just to convert the gift card, you are using your time and may face restocking fees on certain items.
This route makes sense only if you were going to buy from that retailer anyway. If you are trying to convert an unwanted gift card to cash, the resale or cash-out services are more straightforward.
Adding a Visa or Mastercard gift card to a digital wallet
If your gift card is a Visa or Mastercard branded card, you can add it to Apple Pay, Google Pay, or Samsung Pay and use it like a debit card at stores and online. This does not put money into your bank account, but it lets you spend the balance without carrying the physical card.
To add it, open your digital wallet app, select "Add Card," and enter the card number, expiration date, and CVV. The card will appear in your wallet and can be used anywhere that retailer's card is accepted. The balance stays on the gift card itself—it does not transfer to your bank.
This is useful if you want to spend down a gift card without the physical card, but it does not solve the problem of converting the card to bank account funds.
What does not work and why
You cannot deposit a gift card at an ATM, deposit it through mobile banking, or ask a bank teller to convert it. Banks treat gift cards as merchandise, not as financial instruments. Some people try to use gift cards to buy money orders or prepaid cards, hoping to then deposit those, but most retailers and money order services block this because it is a known fraud pattern.
You also cannot use a gift card to pay a credit card bill and then withdraw the credit, even though it might seem like a workaround. Credit card companies flag this as a cash advance or balance transfer, which triggers fees and interest.
Comparing your options by speed and cost
| Method | Speed | Cost | Best for |
|---|---|---|---|
| Resale marketplace (CardCash, Raise) | 3–5 business days | 5–30% discount on face value | Maximizing cash back when you can wait |
| Cash-out service (Raise when ready, PayPal) | Same day or next business day | 5–15% fee | Getting cash quickly |
| Spend and return | Depends on return window (30–90 days) | Free, but requires a purchase | Converting a card for a retailer you use anyway |
| Digital wallet (Visa/Mastercard only) | when ready | Free | Spending the balance without the physical card |
Frequently Asked Questions
Can I deposit a gift card if I add it to my bank's mobile app?
No. Adding a gift card to your bank's app does not deposit it into your account. Your bank app may let you photograph a check for mobile deposit, but it will not accept a gift card image. The gift card remains a separate card with its own balance.
What if the gift card has a very small balance left on it?
Most resale platforms have a minimum balance requirement, often $5 to $10. If your card is below that, a cash-out service may still accept it, but the fee will eat most of the remaining value. Spending the last few dollars at the retailer is usually the most practical option.
Do I have to pay taxes on the money I get from selling a gift card?
Generally, no. 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 its face value, that gain could be taxable. When in doubt, consult a tax professional about your specific situation.
Can I use a gift card to pay my credit card bill and then withdraw the money?
No. Credit card companies treat gift card payments as regular transactions, not as a way to load funds. If you try to use a gift card to pay a credit card and then withdraw cash, the credit card company may flag it as a cash advance or balance transfer, which triggers fees and interest rates much higher than a regular purchase.
Which resale platform pays the most for gift cards?
Rates vary by retailer and change daily based on demand. CardCash, Raise, and Decluttr all compete on price, so it is worth listing on more than one platform and comparing offers. Popular retailers usually have the most competition and the highest payouts.