Gift cards cannot go directly into your bank account the way a check or cash deposit can

A gift card is not money — it is a promise from a store or company to give you goods or services worth a certain amount. Your bank cannot accept it as a deposit because the bank has no way to turn it into actual dollars. You have to convert the gift card to money first, and there are only a few ways to do that.

The most straightforward method is to spend the gift card at the store or business that issued it, then deposit any cash change you receive. If you want the money in your account without spending it on the card's intended purpose, you have other options — but they involve extra steps and sometimes fees.

Key Takeaways

  • Gift cards cannot be deposited directly into a bank account because they are not legal tender and have no cash value until redeemed.
  • You can spend the gift card at the issuing retailer and deposit any cash change you receive at your bank.
  • Some gift card resale websites will buy your card for cash, which you can then deposit, though you will receive less than the card's face value.
  • A few retailers offer the option to convert a gift card balance to a store credit card or account that can be linked to your bank, but this is uncommon.
  • Never give your gift card number to someone claiming they can deposit it for you — this is a common scam.

Why banks will not accept gift cards as deposits

Banks handle money — currency issued by the government that has a fixed value everywhere. A gift card has value only at one specific store or company, and only if that business still exists and honors it. From the bank's perspective, accepting a gift card would be like accepting a promise written on a napkin.

Gift cards also create accounting problems for banks. When you deposit cash or a check, the bank can when ready verify the amount and add it to your account. A gift card would require the bank to contact the issuing retailer, confirm the balance, wait for the retailer to transfer funds, and handle disputes if the card is lost or stolen. Most banks decided this is not worth the cost.

Converting a gift card to cash you can deposit

If you want the money in your bank account, you need to convert the gift card first. The simplest way is to spend it at the store and deposit any change. If you buy a $25 item with a $50 gift card, you walk out with $25 in cash that you can deposit when ready.

If you do not want to spend the card's value at that retailer, you can sell the gift card to a resale website. Sites like Raise, CardCash, and Decluttr buy unused gift cards for cash — usually 70 to 90 percent of the card's face value, depending on the retailer and current demand. You will receive payment by check or direct deposit to your bank account, though the process takes several days to a week. The trade-off is that you lose money on the sale.

Before using a resale site, verify that the card has not been used and that you have the original receipt or proof of purchase if the site requires it. Read the site's terms carefully — some charge fees or have minimum card values.

Gift cards linked to bank accounts or payment apps

A small number of retailers issue gift cards that function like prepaid debit cards. These cards have their own account number and can sometimes be linked to your bank account or a payment app like PayPal or Venmo. Visa and Mastercard gift cards work this way — they are not tied to a specific store and can be used anywhere those cards are accepted.

If you have a Visa or Mastercard gift card, you may be able to add it to your bank's bill-pay system or link it to a payment app, then transfer the balance to your actual bank account. Check your bank's website or call to ask whether they support this. The process varies by bank and card type.

Store-specific gift cards almost never offer this option. Target, Amazon, Walmart, and most other retailers do not allow you to transfer a gift card balance to an external bank account.

What to watch out for

Scammers sometimes target people who want to convert gift cards to cash. They may contact you claiming they can deposit your gift card into your bank account for a fee, or they may ask for your gift card number to "verify the balance." Never share your gift card number with anyone you do not know, and never pay money upfront to someone promising to deposit a gift card for you.

If you are selling a gift card on a resale site, use only well-known platforms with buyer protection policies. Avoid sites that ask you to ship the physical card before you receive payment, or that require you to pay a fee upfront.

Frequently Asked Questions

Can I deposit a Visa or Mastercard gift card into my bank account?

Not directly, but you can spend it anywhere those cards are accepted and deposit the cash change. Some banks allow you to link a Visa or Mastercard gift card to their bill-pay system, which may let you transfer the balance to your account — contact your bank to ask if they offer this.

What if I have a gift card I will never use?

Resale websites like Raise and CardCash will buy it from you for 70 to 90 percent of its value. You will receive payment by check or direct deposit within a week. The alternative is to give it to someone else or donate it to a charity or community organization.

Can I use a gift card to buy something, then deposit the change?

Yes. If you buy an item for less than the card's value, you receive the difference in cash, which you can deposit at your bank. This is the simplest way to convert a gift card to money in your account.

Are there fees for selling a gift card on a resale site?

Most resale sites do not charge you a fee — they make money by buying cards at a discount and selling them to other customers. However, some sites charge a small processing fee or have minimum card values. Read the terms before you list your card.

What happens if I lose a gift card before I deposit the money?

Unlike a bank account, gift cards usually have no fraud protection if someone else uses them. Keep gift cards in a safe place until you spend or sell them. If a card is lost or stolen, contact the issuing retailer when ready — some will replace it if you have proof of purchase.