You can deposit gift card money into your bank account, but the method depends on what kind of gift card you have

A gift card is a prepaid card loaded with money by the person who gave it to you. Your bank account is a separate place where you keep your own money. To move money from a gift card into your bank account, you need to convert the gift card balance into actual cash or a bank transfer — gift cards themselves cannot be deposited like a check.

The path you take depends on whether your gift card is a general-purpose card (like a Visa or Mastercard gift card that works anywhere) or a store-specific card (like an Amazon or Target card that only works at that store). General-purpose cards are easier to move into your bank account. Store cards require you to spend the balance first, then deposit your own money.

Key Takeaways

  • General-purpose gift cards (Visa, Mastercard, American Express) can be transferred to your bank account through a money transfer app or by withdrawing cash at an ATM.
  • Store-specific gift cards cannot be directly deposited into a bank account — you must spend the balance at that store first.
  • Money transfer apps like PayPal, Square Cash, and Venmo let you link a gift card and send the balance to your bank account, though fees may explore.
  • ATM withdrawals work for general-purpose cards but may charge a fee, and some ATMs have daily limits on how much you can withdraw.
  • Peer-to-peer payment apps sometimes offer gift card conversion, but read the terms carefully because not all cards are accepted.

Converting a general-purpose gift card through a money transfer app

If your gift card is a Visa, Mastercard, or American Express card, you can use a money transfer app to move the balance into your bank account. These apps let you link the gift card as a payment method, then transfer money to your bank account or to another person's account.

PayPal is the most common option. Link your gift card to your PayPal account, transfer the balance to your PayPal wallet, then transfer from your wallet to your linked bank account. The first transfer (gift card to PayPal) is free. The second transfer (PayPal to bank) is also free if you choose standard transfer, which takes three to five business days. when ready transfers cost a small percentage fee.

Square Cash (now called Cash App) works similarly. Link your gift card, send the balance to yourself or a trusted person, then move it to your bank account. Cash App charges a 1.5% fee for transfers to your bank account if you use when ready transfer, or no fee if you wait one to three business days.

Venmo lets you add a gift card as a payment method and send money to friends or family, who can then send it back to you. This creates an extra step and involves another person, so it is less direct than PayPal or Cash App.

Withdrawing cash at an ATM and depositing it yourself

If you have a general-purpose gift card, you can use it to withdraw cash at an ATM, then deposit that cash into your bank account at a branch or ATM.

Go to an ATM that accepts your card's network (Visa, Mastercard, or American Express). Insert the card, select "Withdraw Cash," and enter the amount. The ATM will dispense the money. Some ATMs charge a fee for this — usually $2 to $3 — and some gift cards charge their own ATM fee on top of that.

Once you have the cash, deposit it at your bank's ATM or at a teller window. This is free and the money appears in your account when ready (at an ATM) or by the next business day (at a teller). The downside is that you are handling physical cash, which can be lost or stolen, and some ATMs have daily withdrawal limits that may be lower than your gift card balance.

Why store-specific gift cards cannot go directly into your bank account

A store-specific gift card — like one for Amazon, Target, Walmart, or a restaurant — is tied to that store's system and cannot be transferred out as money. The store does not have a way to send that balance to your bank account because the card only works within their payment system.

Your only option is to spend the balance at that store. Once you have spent it, the money is gone from the card. If you want to move money into your bank account, you would need to use your own funds, not the gift card balance.

Some people try to sell unused store gift cards on resale sites like CardCash or Raise, which buy gift cards at a discount and pay you through bank transfer or PayPal. This works, but you receive less than the card's face value — typically 70% to 95% depending on the store and demand.

Understanding fees and limits when moving gift card money

Not every method is free, and some have restrictions. Money transfer apps usually charge a fee only for when ready transfers; standard transfers (three to five business days) are typically free. ATM withdrawals often charge $2 to $3 per transaction, and your gift card issuer may add another fee on top.

Some gift cards have a minimum balance before you can transfer or withdraw. For example, a card might require at least $10 remaining to process a transfer. Check your card's terms or contact the issuer to confirm.

Daily withdrawal limits are another consideration. If your gift card has a $500 balance but your ATM allows only $300 withdrawals per day, you would need to make multiple trips. Bank account transfers through apps usually do not have this problem because they move the full balance at once.

What to do if your gift card is not accepted by money transfer apps

Some older or less common gift cards may not be recognized by PayPal, Cash App, or Venmo. If you try to link the card and the app rejects it, the card may not be compatible with that platform.

Your backup option is to use the card to make a purchase, then return the item for a refund to your bank account. This works only if the store allows returns and if you have something you actually want to buy. You would need to buy an item, return it with your receipt, and ask for the refund to go to your bank account instead of back to the gift card.

Another option is to withdraw cash at an ATM if the card is a general-purpose Visa or Mastercard. Even if money transfer apps do not recognize it, the ATM usually will, because ATMs use a different system to read the card.

Frequently Asked Questions

Can I deposit a gift card directly into my bank account like a check?

No. Gift cards are not checks and cannot be deposited through your bank's mobile app or at a teller window. You must first convert the gift card balance to cash or use a money transfer app to move it to your bank account.

Is it safe to link my gift card to PayPal or Cash App?

Yes, linking a gift card to these apps is as safe as using the card itself. The app reads your card number the same way a store does. Use the same security practices you would with any payment app: do not share your login, use a strong password, and check your account regularly for unauthorized activity.

What happens if I do not use all the money on my gift card?

The remaining balance stays on the card until you use it or transfer it. If you transfer the balance to your bank account, the gift card becomes empty and cannot be used again. If you lose the card before transferring, that money is usually gone — most gift cards do not have fraud protection like credit cards do.

Can I transfer a store gift card balance to my bank account?

No. Store-specific gift cards only work within that store's system. You must spend the balance at the store, or sell the card on a resale site for less than its face value. You cannot move the balance directly to your bank account.

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

No. A gift card is a gift, not income, so transferring it to your bank account does not create a tax event. You only pay taxes on income you earn, not on gifts you receive.