Most gift cards cannot be transferred directly to a bank account, but you have several ways to convert the balance into money you can deposit

A gift card is a prepaid card loaded with a specific dollar amount at a single store or brand. Your bank account is a separate financial product that holds money you can use anywhere. The two systems do not connect directly — you cannot log into your bank and pull money from a Visa gift card, and you cannot swipe a gift card at an ATM to withdraw cash.

However, you can move the money. The method depends on what type of gift card you have. A closed-loop gift card (issued by a specific store like Target or Starbucks) requires you to spend the balance at that store or sell the card to someone else. An open-loop gift card (Visa, Mastercard, or American Express branded) can sometimes be linked to your bank account or converted to cash more easily. A few methods work for both types.

Key Takeaways

  • Closed-loop gift cards from specific stores cannot be transferred to a bank account directly; you must spend them at that store or sell the card.
  • Open-loop gift cards (Visa, Mastercard, Amex) can sometimes be linked to a digital wallet or payment app that connects to your bank account.
  • You can request a check from some gift card issuers, though they may charge a fee or require the balance to be above a minimum amount.
  • Selling your gift card on a resale platform converts it to cash you can deposit, though you will receive less than the card's face value.
  • Some banks and payment apps let you add a gift card as a payment method, then transfer the balance to your account through a bill pay or peer-to-peer feature.

Open-loop gift cards and digital wallets

An open-loop gift card — one branded Visa, Mastercard, or American Express — can sometimes be added to a digital wallet like Apple Pay, Google Pay, or Samsung Pay. Once linked, you can use it to make purchases anywhere that card brand is accepted. This does not move money to your bank account, but it does let you spend the balance.

Some banks and payment apps (like PayPal, Square Cash, or Venmo) allow you to add a gift card as a payment method. You can then use that card to send money to your own bank account through a peer-to-peer transfer or bill pay feature. Check your bank's app or call their customer service line to ask whether this option is available to you. The process varies by institution.

A few open-loop gift cards come with their own app or online account. Log in, check the balance, and look for options to transfer funds or request a payout. Visa and Mastercard gift cards sometimes offer this feature, though not all do.

Requesting a check or direct deposit from the issuer

Some gift card issuers will send you a check for the remaining balance or deposit it directly into your bank account. This is most common with Visa and Mastercard gift cards, particularly those sold by banks or financial institutions.

Contact the customer service number on the back of the card or visit the issuer's website. Ask whether they offer a check or direct deposit option. Be prepared to provide your name, the card number, and your bank account details if they agree. Many issuers charge a fee for this service (typically $5 to $15) or require a minimum balance (often $25 or more). Some will not process a request if the balance is very small.

Processing time varies. A check may take one to two weeks to arrive by mail. A direct deposit typically takes three to five business days. Ask the issuer for a timeline before you request the transfer.

Selling your gift card for cash

Gift card resale platforms buy unused or partially used cards at a discount and resell them. You receive less than the card's face value, but you get cash you can deposit into your bank account. Common platforms include CardCash, Raise, and Decluttr.

The process is straightforward: you list the card, a buyer purchases it, and you receive payment via direct deposit, check, or PayPal. The discount varies by card type and current demand. A $100 Target card might sell for $85 to $95, while a less popular store card might fetch $70 to $80. Platforms typically take a percentage of the sale as their fee.

Before you list a card, check the balance online using the issuer's website or app. Resale platforms require you to provide the exact balance. Some platforms also verify the balance themselves before releasing payment to you.

Using the gift card to pay a bill

If you have an open-loop gift card, you can use it to pay bills online. Many utility companies, credit card issuers, and loan servicers accept Visa, Mastercard, or American Express as payment. Pay the bill with your gift card, then use the money you would have spent on that bill to deposit into your bank account instead.

This does not move the gift card balance directly to your bank, but it frees up money in your checking or savings account that you can then use for other purposes. It works best if you have a regular bill coming due soon.

Closed-loop gift cards and store credit

A closed-loop gift card from a specific store (Target, Walmart, Amazon, Starbucks) cannot be transferred to a bank account. The balance exists only within that store's system and can only be spent there.

Your options are to spend the balance at the store or sell the card. If you choose to spend it, you can purchase items and then return them for a refund to your original payment method — but most stores will refund to the same card you used to buy the gift card, not to a different account. Check the store's return policy first.

Selling the card on a resale platform is usually the fastest way to convert it to cash. The discount will be larger than for open-loop cards, since the buyer is limited to one store.

What to watch out for

Gift card issuers sometimes charge inactivity fees if the card is not used for a set period (often 12 months). These fees reduce the balance over time. If you are planning to convert a gift card to cash, do it before the balance shrinks.

Some gift cards expire. Check the card or the issuer's website for an expiration date. Once expired, the balance may no longer be accessible, though some states have laws requiring issuers to honor expired cards or refund the balance.

Resale platforms are legitimate, but verify you are using an official website before entering your card details. Scammers sometimes create fake resale sites. Stick to well-known platforms with customer reviews.

Frequently Asked Questions

Can I transfer a gift card balance to another person's bank account?

No. You cannot move a gift card balance directly to anyone's bank account. You can sell the card and send the cash to someone else, or you can spend the balance and give them the items you purchased. Some platforms let you transfer a gift card to another person's account with that platform, but the money stays within that system.

What if my gift card has a very small balance left?

Small balances are difficult to convert. Resale platforms may not accept cards under $5 or $10. Issuers may refuse to process a check request for balances below their minimum. Your best option is usually to spend the remaining balance at the store or combine it with another payment method to make a purchase.

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

Generally, no. You are selling an asset you already own, not earning income. The IRS does not treat gift card sales as taxable income. However, if you are selling many cards regularly as a business, consult a tax professional.

How long does it take to get cash from a resale platform?

Most platforms deposit payment within three to seven business days after the buyer receives and confirms the card. Some offer faster payouts for an additional fee. Check the platform's timeline before you list your card.

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

No. Banks require a valid form of payment (like a debit card or bank transfer) to fund a new account, not a gift card. You would need to convert the gift card to cash first, then deposit that money.