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

A gift card is not a payment method your bank recognizes. Banks accept deposits in specific forms: cash, checks, transfers from other accounts, and direct deposits from employers or government programs. A gift card is a stored-value product issued by a retailer or payment network—it holds money, but that money lives in the retailer's or network's system, not in the banking system.

To move money from a gift card into your bank account, you have to convert it first. The conversion step is where the actual process lives. You cannot skip it, and the method you use depends on what kind of gift card you have.

Key Takeaways

  • Gift cards cannot be deposited directly into a bank account; you must convert the balance to cash or a bank transfer first.
  • Visa, Mastercard, and American Express gift cards can often be linked to payment apps like PayPal or Square Cash, which then transfer money to your bank account.
  • Retailer-specific gift cards (Target, Amazon, Walmart) require you to spend the balance or sell the card to a third party, since they cannot be converted to cash directly.
  • The fastest conversion method depends on the card type: payment apps work for network cards, while resale sites work for retailer cards.

Converting network gift cards through payment apps

If your gift card is a Visa, Mastercard, or American Express card—sometimes called "open-loop" cards because they work anywhere those networks are accepted—you can link it to a payment app and transfer the balance to your bank account.

PayPal is the most straightforward option. Add your gift card to your PayPal wallet as a payment method, then transfer money from the gift card to your PayPal balance. From there, you can withdraw to your linked bank account. The transfer to PayPal is when ready; the withdrawal to your bank account takes one to three business days depending on your bank.

Square Cash (now called Cash App), Google Pay, and Apple Pay also accept gift card numbers, though the process varies. With Cash App, you can add the card and send money to yourself or another account you control, then withdraw to your bank. Google Pay and Apple Pay are primarily designed for spending rather than balance transfer, so they are less useful for moving money out.

One limitation: some gift cards have restrictions that prevent them from being added to third-party apps. Prepaid cards issued by your bank, for example, may not work this way. Check the card's terms or contact the issuer before you spend time trying.

Spending retailer gift cards and moving the proceeds

Retailer-specific gift cards—Target, Amazon, Walmart, Best Buy—cannot be converted to cash or transferred to a bank account directly. The money on these cards exists only within that retailer's system. Your options are to spend the balance or sell the card.

If you spend the balance, you can use the purchase to free up money elsewhere in your budget. Buy something you would have paid for anyway, then use the cash you saved for something else. This is not technically moving money into your bank account, but it has the same financial effect.

If you want actual cash or a bank deposit, you have to sell the card. Websites like Raise, CardCash, and Decluttr buy unused or partially used gift cards at a discount. You list the card, set a price, and when someone buys it, you receive payment via PayPal, direct deposit, or check. The discount ranges from 5 to 40 percent depending on the retailer and how much balance remains. Popular retailers like Amazon and Target typically sell for 90 to 95 percent of face value; less common retailers sell for less.

The sale process takes a few days. You upload a photo of the card, the buyer confirms the balance, and then payment is sent to you. Some sites hold the funds briefly to may support the card was not fraudulent, so the full timeline can be one to two weeks.

Using a debit card cash advance at an ATM

If your gift card is a Visa or Mastercard debit card (not a store card), you may be able to withdraw cash at an ATM. This is the fastest way to convert the balance to cash, which you can then deposit into your bank account.

Insert the card into any ATM that displays the Visa or Mastercard logo, enter the PIN (or set one if you have not already), and withdraw cash up to the card's daily limit. Once you have cash, you can deposit it into your bank account at a branch, ATM, or mobile deposit.

Not all gift cards allow ATM withdrawals. Retailer cards and some prepaid cards do not. Check the card's website or call the number on the back to confirm before you try.

Moving money through a peer-to-peer payment app

If you have a friend or family member you trust, you can add your gift card to Venmo, PayPal, or a similar app and send them the balance. They then send the money back to your bank account. This is slower and more complicated than the direct methods above, and it requires involving someone else, so it is worth doing only if the other methods do not work for your card type.

The risk is that peer-to-peer apps have fraud protections that may flag the transaction as suspicious, especially if the amounts are large or the pattern is unusual. You could end up with a frozen account while the app investigates.

What does not work

You cannot write a check on a gift card balance. You cannot call your bank and ask them to deposit a gift card. You cannot use a gift card as collateral for a loan. You cannot transfer the balance between gift cards from different retailers.

Some gift card resale sites claim they can deposit money directly into your account without you having to sell the card. These are scams. If a site asks for your bank login information or promises when ready deposits without you sending them the card, do not use it.

Frequently Asked Questions

Can I deposit a gift card at my bank's ATM?

No. ATMs accept cash, checks, and sometimes card payments, but not gift cards. If your gift card is a network card (Visa, Mastercard), you can withdraw cash from the card at an ATM, then deposit that cash. If it is a retailer card, you cannot use the ATM route.

What if my gift card has a PIN I do not know?

Contact the retailer or card issuer and ask them to reset it or provide it. You will need to verify your identity. If you cannot reach them or the card is lost, the balance may be unrecoverable depending on the retailer's policy.

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

No. A gift card is your own money or a gift you received; moving it to your bank account is not taxable income. Taxes explore only if you sell the card for more than its face value, which is rare.

How long does it take to move gift card money to my bank account?

It depends on the method. Payment app transfers are when ready to the app, then one to three business days to your bank. Resale sites take three to seven days. ATM cash withdrawal is when ready, but you still need to deposit the cash, which takes one to three days depending on your bank's mobile deposit or branch hours.

Can I move money from a gift card I received as a business expense?

Yes, the process is the same. If your employer gave you a gift card as a bonus or reimbursement, you can convert it to cash or a bank deposit using any of the methods above. Check your employer's policy on whether they expect you to keep the card or convert it.