You cannot deposit a gift card directly into your bank account the way you would a check or cash
A gift card is a prepaid card issued by a specific retailer or payment network. Your bank account is a separate financial container that holds money in your name at that institution. The two systems do not connect — your bank has no way to read a gift card's balance or transfer its value into your account.
What you can do instead depends on what kind of gift card you have and what you want to do with the money. Some gift cards can be converted to cash through specific steps. Others can be moved into a payment app, used to buy something you can resell, or transferred to someone else. The path that works for you depends on the card's terms and what outcome you are after.
Key Takeaways
- Gift cards cannot be deposited directly into a bank account because they are issued by retailers or payment networks, not banks.
- Visa, Mastercard, and American Express gift cards can sometimes be added to digital payment apps like PayPal or Venmo, which can then transfer money to your bank account.
- Some retailers allow you to use a gift card to buy a money order or gift card to a different retailer, which can then be converted to cash through other means.
- Selling a gift card on a secondary market site will get you cash, but you will receive less than the card's face value.
- The fastest and most direct route depends on the card issuer and your bank's policies, so checking both sets of terms first saves time.
How payment network gift cards work differently from store cards
A payment network gift card — issued by Visa, Mastercard, or American Express — functions like a debit card. It has a card number, expiration date, and CVV, and can be used anywhere that network is accepted. Because it mimics a debit card, some banks and payment apps will let you add it as a payment method, which is the closest you can get to moving the balance into your account.
A store gift card — issued by Target, Amazon, Starbucks, or another retailer — only works at that retailer or its affiliated locations. These cards are locked to that ecosystem and cannot be added to most payment apps. Your options with a store card are narrower: spend it at the retailer, sell it on a secondary market, or in some cases trade it for a different card.
The distinction matters because it determines which conversion methods are available to you. A Visa gift card opens more doors than a Target gift card does.
Adding a payment network gift card to PayPal or a similar app
PayPal, Venmo, Square Cash, and similar apps allow you to add a Visa or Mastercard gift card as a payment method. The app treats it like any other debit card. You can then use that balance to send money to other people, pay bills, or in some cases transfer the balance to your linked bank account.
The process is straightforward: open the app, go to your payment methods or wallet, select "add card," and enter the gift card number, expiration date, and CVV. The app will verify the card with a small test charge (usually reversed when ready). Once verified, you can use the balance.
The catch is that not all apps let you transfer a gift card balance directly to your bank account. PayPal does allow transfers to a linked bank account if you have a PayPal Cash or PayPal Cash Plus account, though there may be a fee. Venmo does not allow direct transfers to your bank account — you can only send money to other Venmo users or withdraw to a debit card. Check the app's terms before you add the card, because the rules vary.
Converting a store gift card through resale sites
If you have a store gift card you do not plan to use, you can sell it on a secondary market. Sites like CardCash, Raise, and Decluttr buy unused gift cards at a discount to their face value. The discount varies by retailer and current demand — a popular retailer's card might sell for 85 to 95 percent of face value, while a less popular one might fetch 60 to 75 percent.
The process is straightforward: list the card on the site, provide the card number and PIN (if applicable), and the site verifies the balance. Once verified, you receive payment via bank transfer, PayPal, or another method the site offers. The whole process usually takes a few days.
The trade-off is clear: you lose 5 to 40 percent of the card's value in exchange for cash. This makes sense if you will not use the card anyway, but it is not a way to convert a card you might actually spend at that retailer.
Using a gift card to buy a money order or another card
Some retailers allow you to use a gift card to purchase a money order or a different gift card. This is less common than it used to be, but it remains an option at certain stores. For example, some Walmart locations will let you use a gift card to buy a money order, which you can then deposit into your bank account like cash.
The steps would be: go to the retailer, ask if you can use the gift card to buy a money order, complete the purchase, and take the money order to your bank to deposit it. Money orders are treated like checks by banks and typically clear within one to three business days.
This route works only if the retailer offers it and if you have a money order service nearby. It also requires a trip to the store and potentially a small fee for the money order itself (usually $1 to $5). Call ahead to confirm the retailer accepts gift cards for money orders before you make the trip.
What happens if you try to deposit a gift card as if it were a check
You cannot photograph a gift card and deposit it through your bank's mobile app the way you would a check. The app is designed to read bank routing numbers and account numbers from checks — data that does not exist on a gift card. If you try, the deposit will be rejected.
Some people have attempted to deposit gift cards at ATMs or through bank tellers, asking the bank to treat the card as a prepaid instrument. Banks will not do this because they have no way to verify the balance or transfer the funds. The gift card issuer (the retailer or payment network) is the only entity that can move that money, and they do not have a direct connection to your bank.
Timing and fees to expect
The time and cost depend on which method you choose. Adding a gift card to PayPal and transferring to your bank account takes one to three business days and may include a transfer fee (PayPal charges $1.50 for standard transfers). Selling on a resale site takes two to five business days and costs you 5 to 40 percent of the card's value. Buying a money order takes a few hours but costs $1 to $5 in fees.
If you are in a hurry, adding the card to a payment app is fastest. If you want the highest percentage of the card's value, spending it at the retailer is the only option that preserves 100 percent of the balance — but that requires you to actually want something there.
Frequently Asked Questions
Can I add an Amazon gift card to PayPal?
No. Amazon gift cards are store-specific and cannot be added to PayPal or other payment apps. Your options are to spend it at Amazon, sell it on a resale site like Raise or CardCash, or give it to someone else. PayPal only accepts payment network cards (Visa, Mastercard, American Express).
What if my gift card has a very small balance left?
Small balances are often not worth the effort to convert. Resale sites may reject cards under $5 or $10. Your best option is usually to spend the remaining balance at the retailer, combine it with another payment method, or give the card away. Check the site's minimum before you try to sell.
Do I lose money when I add a gift card to PayPal?
Adding the card itself is free. If you transfer the balance from PayPal to your bank account, PayPal charges $1.50 for a standard transfer or $0 if you have PayPal Cash or Cash Plus. You do not lose any of the gift card's value in the transfer itself, only the PayPal fee.
Can my bank deposit a gift card if I bring it in person?
No. Banks cannot process gift cards as deposits because they have no way to verify the balance or access the funds. Only the gift card issuer can move that money. Your bank teller will direct you to one of the conversion methods described here instead.
Is it safe to sell a gift card online?
Established resale sites like CardCash, Raise, and Decluttr have buyer protection and verify balances before paying you. The risk is low if you use a well-known site. Avoid selling on unmoderated marketplaces or to individuals, where scams are more common. Always check reviews and the site's refund policy before you list.