You can deposit gift card money into your bank account, but not the card itself

A gift card is not a bank account, so you cannot deposit it directly the way you would a check. Instead, you convert the gift card into cash or a bank transfer, then deposit that money. The method depends on what kind of gift card you have and which bank you use.

The most common routes are: spending the card at the retailer and depositing your change, selling the card to a third party for cash, or transferring the balance to a payment app that connects to your bank account. Some banks also let you photograph the card details and add the balance to your account, though this is less common and usually works only with certain card types.

Key Takeaways

  • You cannot deposit a physical gift card into a bank account; you must first convert it to cash or a digital balance.
  • Spending the card at the retailer and depositing any change as cash is the simplest method if you have a use for the purchase.
  • Gift card resale websites and apps buy unused cards for cash, though you typically receive 70 to 90 percent of the card's face value.
  • Some payment apps like PayPal or Venmo let you add a gift card balance and then transfer money to your bank account.
  • Your bank cannot process a gift card deposit directly, so you will need to use one of these intermediate steps first.

Spending the card and depositing the cash

The simplest path is to use the gift card to buy something, then deposit any cash change you receive. If the card has a $50 balance and you buy a $30 item, you get $20 back. You can then deposit that $20 into your bank account through an ATM, at a teller, or through mobile deposit if your bank offers it.

This works best if you were planning to buy something at that retailer anyway. If you are not interested in the store's products, this method wastes money on something you do not want just to access the funds.

Selling the gift card for cash

Gift card resale websites and apps buy unused cards from you for cash. You list the card, a buyer purchases it, and you receive payment. Common platforms include Raise, CardCash, and Decluttr. The amount you receive is typically 70 to 90 percent of the card's face value, depending on the card type and current demand.

The process usually takes a few days. You photograph the card's back (where the PIN or code is), upload the image, and once a buyer claims it, you receive payment via bank transfer, PayPal, or check. Some platforms pay when ready; others hold the money until the buyer confirms the card works.

This method works well if you have no use for the card and want to convert it to cash quickly. The trade-off is that you lose 10 to 30 percent of the card's value. Check the platform's fees before you sell—some charge a small percentage, and some take a flat fee.

Using a payment app as a middle step

Some payment apps let you add a gift card balance to your account, then transfer that money to your bank. PayPal, Venmo, and Square Cash all accept gift cards in their apps. You enter the card number, expiration date, and security code just as you would for an online purchase. The app then treats the card as a payment method on file.

Once the card is linked, you can transfer money from the card to your bank account through the app. This is not when ready—transfers usually take one to three business days—but it avoids the loss you take when selling to a resale platform.

Not all gift cards work with all apps. Visa and Mastercard gift cards are most widely accepted. Store-specific cards (like Target or Amazon) usually cannot be added to third-party payment apps, though you can often add them directly to those retailers' own apps and then request a refund to your bank account if the retailer offers that option.

Adding the card directly to your bank account

Some banks let you photograph a gift card and add its balance directly to your account, though this is uncommon and usually limited to specific card types. A few online banks and credit unions have tested this feature, but it is not standard across the banking industry.

If your bank offers this, you would use the mobile banking app to photograph the front and back of the card, and the bank would verify the balance and add it to your account. This is the fastest method if available, but you should contact your bank directly to ask whether they support it. Most do not.

What happens to the gift card after you convert it

Once you have spent the card, sold it, or transferred its balance, the card itself becomes worthless. If you sold it to a resale platform, the buyer now owns it and can use it. If you transferred the balance to a payment app or your bank, the card's funds are gone and the physical card is just plastic.

Keep the card for a few weeks after the transaction in case there is a dispute about the balance or the sale. After that, you can throw it away or recycle it if your area accepts plastic cards in curbside recycling.

Frequently Asked Questions

Can I deposit a gift card at an ATM?

No. ATMs only accept cash, checks, and in some cases envelopes of coins. A gift card has no value to an ATM. You must convert the card to cash or a digital balance first using one of the methods above.

What if the gift card has a very small balance left on it?

Resale platforms usually have a minimum balance they will buy—often $5 or $10. If your card is below that, spending it at the retailer or adding it to a payment app are your best options. Some retailers also let you combine a gift card with another payment method at checkout, so you could use the remaining balance plus a debit card.

Do I have to pay taxes on gift card money I deposit?

No. A gift card is not income—it is a prepaid purchase. When you convert it to cash or deposit it, you are not earning money, so there is no tax. If you sell the card for less than its face value, you cannot deduct the loss on your taxes either, because it is a personal transaction.

Can I use a gift card to open a bank account?

No. Banks require an initial deposit in the form of cash, a check, or a transfer from another account. A gift card cannot be used to open an account. You would need to convert the gift card to one of those forms first.

What if the gift card is from a store that no longer exists?

If the retailer is closed, the card is usually worthless and resale platforms will not buy it. Some states have laws requiring retailers to honor old gift cards even after closure, but enforcement is difficult. Your best option is to contact the retailer's parent company or check your state's attorney general website for gift card protection rules.