You cannot deposit a gift card directly into a bank account the way you would a check

A gift card is not a check or cash, so your bank has no way to process it as a deposit. The card itself holds a balance with the retailer or card network that issued it — not with your bank. To move that money into your bank account, you need to spend the gift card first, then deposit the cash or transfer the proceeds.

The method depends on what kind of gift card you have. A Visa or Mastercard gift card works differently from a store gift card, and each has its own path to getting money into your account.

Key Takeaways

  • Gift cards cannot be deposited directly; you must convert them to cash or use them to make a purchase first.
  • Visa and Mastercard gift cards can be used online or in stores to buy something, then you can deposit any refund or use the card to withdraw cash at an ATM.
  • Store gift cards must be spent at that retailer or sold to a third party, since they have no ATM or online transfer option.
  • Some gift card resale websites buy unused cards for cash, though you typically receive less than the card's face value.
  • Depositing money you received from selling a gift card works like any other bank deposit — through ATM, mobile app, or in person.

How Visa and Mastercard gift cards work with your bank account

A Visa or Mastercard gift card functions like a debit card. You can use it to buy something at a store or online, and if you receive change or a refund, you can deposit that cash into your bank account. You can also use the card to withdraw cash at an ATM, which you can then deposit.

The catch is that ATM withdrawals often come with a fee — sometimes $2 to $3 per transaction — so this method costs you money. Buying something and depositing the change is free but requires you to make a purchase. If you want to move the full balance without spending it, selling the card to a resale site is your main option.

Store gift cards and how to convert them to bank deposits

A store gift card — from Target, Amazon, Starbucks, or any single retailer — can only be spent at that store. You cannot use it at an ATM or transfer it to your bank. Your options are to spend it there or sell it.

If you sell a store gift card on a resale platform like Raise, CardCash, or Decluttr, you receive cash (usually 70 to 95 percent of the card's face value, depending on the retailer and demand). Once you receive the payment, you can deposit it into your bank account through your bank's mobile app, at an ATM, or in person at a branch.

Selling a gift card for cash

Gift card resale sites connect people who want to sell unused cards with buyers. The process is straightforward: you list the card, a buyer purchases it, and the site sends you the payment. The amount you receive is less than the card's face value — a $100 Starbucks card might sell for $75 to $85, for example.

Payment methods vary by site. Some send money directly to your bank account via ACH transfer (which takes one to three business days), while others use PayPal, check, or store credit. Check the site's payout options before you list your card. ACH transfer is the fastest route to getting money into your bank account.

Be aware that resale sites take a commission, and the buyer's demand for that particular retailer affects the price you receive. Popular retailers with broad appeal (like Amazon or Visa) sell faster and for a higher percentage of face value than niche or regional stores.

What happens if you use a gift card to buy something, then return it

If you use a gift card to purchase an item and then return it, the refund goes back onto the gift card, not into your bank account. You would then need to spend that balance again or sell the card to convert it to cash.

The exception is if the retailer offers a refund to your original payment method. Some stores will refund to a debit card or bank account if you used one to make the purchase, but a gift card refund typically returns to the gift card itself.

Tax and reporting considerations

If you receive a gift card as a gift, depositing the money you get from selling it is not a taxable event for you. The person who gave you the card may have tax implications depending on the amount and their situation, but that is their responsibility, not yours.

If you sell a large number of gift cards regularly, the IRS may view it as a business activity, which could trigger reporting requirements. For occasional sales of cards you received as gifts, you do not need to report anything to your bank or the IRS.

Frequently Asked Questions

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

No, but you can withdraw cash from an ATM using the card and then deposit that cash. You can also use the card to make a purchase and deposit any change. Both methods convert the card balance to money your bank recognizes.

What if I have a store gift card I don't want to use?

Sell it on a resale site like Raise or CardCash. You will receive less than the face value, but the payment can go directly to your bank account via ACH transfer, which typically takes one to three business days.

Do I pay taxes on money from selling a gift card?

No, if the card was a gift to you. You are straightforward converting an asset you already owned into cash. The original giver may have tax considerations, but you do not.

How long does it take to sell a gift card and get the money?

It depends on the site and the card's popularity. Some cards sell within hours; others take days or weeks. Once sold, payment via ACH transfer usually arrives in one to three business days.

Will my bank charge me a fee to deposit money from a gift card sale?

No, depositing cash or receiving an ACH transfer from a resale site is free. The only fees come from the resale site's commission and any ATM withdrawal fees if you withdraw cash from the gift card itself.