You cannot deposit a gift card directly into a bank account
Banks do not accept gift cards as deposits. A gift card is a stored-value product issued by a retailer or payment network—it holds money that only that company (or network) will accept. Your bank has no way to verify the card's balance, convert it to cash, or credit your account.
What you can do instead is convert the gift card to cash or a bank transfer through a few specific routes, each with different timing and fees. The fastest route depends on what kind of gift card you have and whether you want cash in hand or money in your account.
Key Takeaways
- Gift cards cannot be deposited directly into bank accounts because banks cannot verify or convert stored-value cards to cash.
- Visa, Mastercard, and American Express gift cards can be used at ATMs or online like debit cards if they are open-loop cards, which moves money to your bank account only if you transfer it yourself.
- Retailer-specific gift cards (Amazon, Target, Walmart) must be spent at that retailer or sold to a reseller, since they hold no cash value outside that ecosystem.
- Gift card resale sites like Raise and CardCash buy gift cards at a discount and pay you via bank transfer, typically within one to five business days.
- Spending the gift card and depositing the cash yourself is the simplest path if the retailer accepts it and you have time to make the purchase.
The difference between open-loop and closed-loop gift cards
Open-loop gift cards are issued by payment networks—Visa, Mastercard, American Express, or Discover. These cards work anywhere that network is accepted, just like a debit card. You can use them at ATMs to withdraw cash, or swipe them online and in stores. The money stays on the card until you spend it; it does not automatically go to your bank account.
Closed-loop gift cards are issued by individual retailers—Amazon, Target, Walmart, Starbucks, Best Buy. They only work at that retailer or its partners. You cannot withdraw cash or use them anywhere else. The balance has no existence outside that retailer's system.
If you have an open-loop card, you can use it like a debit card and then deposit any cash you withdraw. If you have a closed-loop card, you must either spend it at that retailer or sell it to someone else.
Using an open-loop gift card to get cash
If your gift card is a Visa, Mastercard, American Express, or Discover card, you can withdraw cash at any ATM that accepts that network. Insert the card, enter the PIN (usually printed on the back or in the paperwork that came with it), and withdraw up to your card's balance. The ATM will charge a fee—typically $2 to $3 per transaction—which comes out of the card's balance.
Once you have the cash, you can deposit it into your bank account at an ATM, a branch, or through mobile deposit if your bank offers it. This is the most straightforward path if you have an open-loop card and do not mind paying the ATM fee.
Some open-loop cards also let you transfer the balance to a linked bank account through the card issuer's website or app. Check the back of the card or the paperwork for instructions. This avoids the ATM fee but may take one to three business days.
Selling a closed-loop gift card for cash
If you have a retailer-specific gift card, you can sell it to a gift card reseller. These companies buy gift cards at a discount—usually 70 to 95 percent of face value, depending on the retailer and current demand—and pay you via bank transfer or check.
The largest resellers are Raise, CardCash, and Decluttr. You list the card on their site, they verify the balance, and once a buyer purchases it, they send you payment. Raise and CardCash typically pay within one to five business days. Decluttr pays by check, which takes longer.
The discount you receive depends on how desirable the card is. Popular retailers like Amazon and Target usually sell for 85 to 95 percent of face value. Smaller or less popular retailers may sell for 70 to 80 percent. Seasonal demand also matters—gift cards to restaurants or retail stores may sell for less in January than in November.
You will need the card's PIN or access code to list it. Some resellers require you to photograph the back of the card to verify the code. Never share the code with anyone except the reseller's verified platform.
Spending the gift card and depositing the cash yourself
The simplest path, if you have time and the retailer sells things you need, is to spend the gift card and deposit any cash change into your bank account. If the gift card balance is $50 and you buy $45 worth of goods, you can ask for $5 in cash back. Deposit that cash at your bank's ATM or branch.
This method has no fees and no discount. You get the full value of the card, but only as much as you can spend at that retailer. If the card is for a store you do not shop at, this route is not practical.
What happens if the gift card has a PIN or set up requirement
Some gift cards require a PIN to use at ATMs or online. The PIN is usually printed on the back of the card or included in the packaging. If you do not have the PIN, contact the card issuer's customer service number (also on the back) and request it. They will verify your identity and provide the PIN.
A few gift cards require set up before use. If you received a physical card, there may be a sticker with instructions to set up it online or by phone. Do this before trying to use the card, or the transaction will be declined.
Fees and timing for each method
| Method | Card Type | Fee | Timing |
|---|---|---|---|
| ATM withdrawal | Open-loop only | $2–$3 per transaction | when ready; deposit takes 1–2 business days |
| Direct transfer to bank | Open-loop only | None | 1–3 business days |
| Resale (Raise, CardCash) | Closed-loop or open-loop | 15–30% discount on face value | 1–5 business days after sale |
| Spend and deposit cash | Closed-loop or open-loop | None | when ready; deposit takes 1–2 business days |
Frequently Asked Questions
Can I deposit a gift card directly into my bank account online?
No. Banks do not accept gift cards as deposits through their apps or websites. You must first convert the gift card to cash or a bank transfer using one of the methods above, then deposit that money into your account.
What if my gift card has a very small balance left?
If the balance is under $5, most resellers will not accept it because the transaction cost exceeds the payout. Your best option is to spend it at the retailer or use it as an open-loop card at an ATM, though the ATM fee may exceed the balance. Some retailers also let you combine a gift card with another payment method, so you can use the remaining balance on a purchase.
Do I need to report gift card sales as income?
No. Selling a gift card you received as a gift is not taxable income. You are converting an asset you already own into cash. However, if you bought the gift card yourself and are reselling it at a loss, you cannot deduct the loss on your taxes.
Is it safe to sell my gift card on a resale site?
Yes, if you use an established reseller like Raise or CardCash. These sites hold your payment in escrow until the buyer confirms the card works, which protects you. Never sell a gift card through a personal marketplace or to someone you do not know, as there is no recourse if they claim the card does not work.
What if the gift card issuer goes out of business?
If a retailer closes, gift cards issued by that retailer typically become worthless. Some states have laws requiring retailers to honor gift cards or refund the balance, but enforcement is limited. Resale sites will not accept cards from closed retailers. If you have a card from a retailer that is closing, spend or resell it when ready.