What you can actually do with a gift card balance
You cannot move a gift card balance directly into a bank account the way you would transfer money between two accounts you own. Gift cards are not bank products — they are stored value on a card issued by a retailer or payment network, and that money lives in their system, not yours.
What you can do is spend the gift card balance in ways that put money back into your bank account. The most common methods are using the card to buy something you would have paid for anyway, then returning the item for a refund to your bank account, or using the card to pay a bill that you would have paid from your bank account anyway. Some gift cards can also be converted to cash through a third-party service, though this usually costs you a percentage of the balance.
The method that works best depends on what kind of gift card you have, whether you need the money urgently, and how much of the balance you are willing to lose to fees.
Key Takeaways
- Gift card balances cannot be transferred directly to a bank account because gift cards are not connected to banking systems.
- Buying an item and returning it for a refund to your bank account is free but requires the retailer to accept returns and process refunds to the original payment method.
- Using a gift card to pay a bill (utilities, credit card, loan) moves the money out of the card and reduces what you owe from your bank account.
- Third-party gift card marketplaces and cash-out services charge 5 to 15 percent of the balance but convert the card to cash within days.
- Visa and Mastercard gift cards are easier to convert than store-specific cards because they work almost anywhere a debit card does.
Returning a purchase for a refund to your bank account
If the gift card came from a retailer (Target, Best Buy, Walmart, etc.), the simplest path is to buy something you need, return it, and request the refund go back to your original payment method — which will be your bank account if you paid with a debit card.
The catch is that the retailer must accept returns and must be willing to refund to the original payment method. Most major retailers do this, but some have restrictions: items must be returned within 30 to 90 days, they must be unused and in original packaging, and some categories (like clearance items or final sales) cannot be returned. Call the store or check their return policy before you buy.
When you return the item, tell the cashier or customer service representative that you want the refund to go to your original payment method. The refund usually takes 3 to 10 business days to appear in your bank account. This method is free and works well if you genuinely need something the retailer sells.
Using the gift card to pay a bill instead of your bank account
If you have a recurring bill — electric, water, internet, phone, credit card, or loan payment — you can use the gift card to pay it instead of using your bank account. This does not put cash into your account, but it reduces the amount you need to pay from your bank account that month, which frees up money there.
This works best with Visa, Mastercard, or American Express gift cards, which most billers accept as regular debit or credit cards. Store-specific gift cards usually cannot be used this way unless the biller is that same store.
To pay a bill with a gift card, go to the biller's website or call them and choose to pay by debit or credit card. Enter the gift card number, expiration date, and CVV (the three-digit security code on the back) just as you would a regular card. The payment posts when ready or within one business day. This method is free and works even if the gift card balance is lower than your full bill — you can pay part of the bill with the card and the rest from your bank account.
Selling or trading the gift card through a marketplace
Several websites buy unused gift cards from people and resell them to others. The most established are Raise, CardCash, and Gameflip. You list your gift card on their site, they verify the balance, and when someone buys it, they send you the money to your bank account.
The trade-off is that you will receive less than the full balance — typically 70 to 95 percent of what the card is worth, depending on the retailer and current demand. A $100 Target gift card might sell for $92, for example. The site takes a commission, and less-popular retailers get lower offers. The process usually takes 2 to 7 days from listing to payment.
This method works well if you have a gift card you will not use and need the money more than you need the merchandise. It is also the only option if the retailer does not accept returns or if you cannot find anything you want to buy there.
Using a gift card cash-out service
Some services, like Cardtonic and Raise's when ready option, will give you cash when ready for a gift card, though at a steeper discount than the marketplace route. You typically get 60 to 80 percent of the balance in exchange for the card number and PIN.
These services are faster than selling through a marketplace — you can have money in your bank account within hours — but the fee is higher. A $100 gift card might net you only $70 to $80. Use this option only if you need the money urgently and are willing to lose a significant portion of the balance.
Why you cannot transfer the balance directly
Gift cards are not bank accounts. They are prepaid cards issued by retailers or payment networks, and the money on them is held by that company, not by a bank. Because the gift card system and the banking system do not connect directly, there is no way to move the balance from one to the other without first converting it to a purchase, a payment, or a sale.
This is different from transferring money between two bank accounts, which happens when ready because both accounts are in the same banking network. A gift card has no routing number, no account number, and no connection to any bank — it is straightforward a stored balance that can only be spent at the issuer or through a conversion service.
Comparing your options side by side
| Method | How long it takes | What you receive | Best for |
|---|---|---|---|
| Buy and return | 3 to 10 days | 100% of balance (if item qualifies) | When you need something the retailer sells |
| Pay a bill | when ready | Reduces what you owe (not cash) | When you have a recurring bill due soon |
| Sell on marketplace | 2 to 7 days | 70 to 95% of balance | When you have time and want the best rate |
| Cash-out service | Hours to 1 day | 60 to 80% of balance | When you need cash urgently |
Frequently Asked Questions
Can I use a gift card to withdraw cash from an ATM?
Only if it is a Visa, Mastercard, or American Express gift card with a PIN. Even then, most ATMs charge a fee ($2 to $3 per withdrawal) and may have daily limits. Store-specific gift cards cannot be used at ATMs at all. Check the card's terms or call the number on the back to confirm whether ATM withdrawals are allowed.
What if my gift card has a small balance left on it?
Small balances ($5 or less) are usually not worth selling through a marketplace because the commission will eat most of it. Your best options are to use it to pay part of a bill, buy something small at the retailer, or combine it with another payment method to make a purchase. Some retailers also let you use multiple gift cards on one transaction.
Do I have to pay taxes on money I get from selling a gift card?
No. Selling a gift card is not taxable income because you are not earning money — you are converting something you already own into cash. The original gift to you was not taxable either. Keep records of the sale in case you are ever asked about it, but you do not need to report it to the IRS.
Can I transfer a gift card balance to someone else's bank account?
No. Gift card balances cannot be transferred between people or accounts. If you want to give the card to someone else, you can give them the physical card or the card number, and they can use it themselves. If you want to give them cash, you would need to convert the gift card to money in your own bank account first, then transfer that money to them.
What happens if I lose a gift card before I use it?
Contact the retailer or payment network that issued the card as soon as you notice it is missing. Most will freeze the card to prevent unauthorized use and may reissue it if you can provide proof of purchase or the original receipt. Some retailers are more helpful than others — major chains like Target and Walmart usually replace lost cards, but smaller retailers may not. Act quickly, because some companies will not help if too much time has passed.