The direct answer: most gift cards cannot go straight into a bank account

You cannot transfer a gift card balance directly to a bank account the way you would move money between two bank accounts. Gift cards are stored-value products — the money lives on the card itself, not in a banking system. To get that money into your bank account, you have to spend it first, then move the proceeds. The most practical routes are: use the card to buy something you would buy anyway, then return it for a refund to your bank account; use the card at a retailer that offers cash back; or load the card balance onto a digital wallet that connects to your bank.

The method that works depends on what kind of gift card you have and what you need the money for. A Visa or Mastercard gift card works differently from a store gift card. Some cards let you withdraw cash at an ATM. Others do not. Knowing which type you hold narrows your options significantly.

Key Takeaways

  • Visa and Mastercard gift cards can often be used to withdraw cash at an ATM or to make a purchase and request cash back, moving the money into your bank account within one to three business days.
  • Store gift cards have no direct path to a bank account unless the retailer offers a cash-back option at checkout.
  • Loading a gift card balance onto a digital wallet like PayPal or Apple Pay, then transferring from the wallet to your bank, works for some cards but involves fees and takes several days.
  • Selling a gift card through a resale marketplace is an option if you do not want to spend it, though you will receive less than the card's face value.
  • Some gift cards charge inactivity fees that reduce the balance over time, so moving the money sooner rather than later protects what you have.

Using a Visa or Mastercard gift card to withdraw cash or get cash back

Network gift cards — those branded Visa, Mastercard, American Express, or Discover — function like debit cards and can access cash in two ways. The first is to visit an ATM and withdraw cash directly using your PIN. The second is to make a purchase at a store and request cash back at the register, the same way you would with a debit card. Both methods move money from the card into your hands, and from there you can deposit it into your bank account.

ATM withdrawals usually post to your bank account within one business day if you deposit the cash when ready. Cash back at a store is when ready — you walk out with the money. The catch is that some gift cards charge a fee for ATM withdrawals, typically $2 to $3 per transaction. Store cash back usually has no fee. Check the card's terms before you go to the ATM; the fee information is often printed on the back or available on the issuer's website.

If the card requires a PIN and you do not have one, you can call the number on the back of the card and request one, or set one up online through the issuer's portal. This usually takes one to two business days. Once you have the PIN, you can withdraw at any ATM that accepts that card network.

Returning a purchase to get a refund to your bank account

If you use a gift card to buy something and then return it, the refund goes back to the original payment method — in this case, the gift card itself. That does not help you move money to your bank account. However, if you buy something, return it, and the retailer offers a refund in a different form, you may be able to request the refund as a check or direct deposit to your bank account instead of back to the card.

This works best at large retailers with flexible return policies. Call the customer service number or visit the store and ask whether you can receive a refund by check or bank transfer instead of back to the gift card. Some will do this; others will not. If they refuse, you are back to the cash-back or ATM route.

The advantage of this method is that it avoids ATM fees. The disadvantage is that it requires you to buy something you actually want to keep, or to buy and return something, which takes time and assumes the retailer accepts returns.

Loading a gift card onto a digital wallet, then transferring to your bank

Some digital wallets — PayPal, Google Pay, Apple Pay, and others — let you add a gift card as a payment method. Once the card is linked, you can sometimes transfer the balance to a connected bank account. This process varies by wallet and by card type.

PayPal is the most straightforward option. You can add a Visa or Mastercard gift card to your PayPal account, then transfer the balance to your linked bank account. The transfer usually takes three to five business days, and PayPal charges a small fee (typically $0.25 to $1.50 depending on the transfer speed you choose). Google Pay and Apple Pay do not offer direct balance transfers to bank accounts; they are designed for spending, not for moving money out.

Before you try this route, check whether your gift card is compatible with the wallet you want to use. Some prepaid cards block transfers to third-party wallets. The wallet's help section will tell you whether your card type is supported.

Store gift cards and retailer-specific options

A gift card issued by a specific store — Target, Walmart, Amazon, etc. — cannot be transferred to a bank account directly. Your options are narrower: spend the card at that retailer, or sell it on a resale marketplace.

Some retailers offer cash back at the register if you make a purchase. Walmart and Target both allow this. You buy something, and at checkout you can request cash back up to a certain amount (usually $20 to $100, depending on the store). The cash comes out of your purchase total, and you walk out with the difference. This is the fastest way to convert a store gift card to cash.

If the store does not offer cash back, or if you do not want to spend money at that retailer, you can sell the card on a resale marketplace like CardCash, Raise, or Decluttr. These sites buy unused gift cards at a discount — typically 70 to 95 percent of face value — and pay you by check, direct deposit, or PayPal. The payout takes five to ten business days. This is not a way to get the full value of the card, but it is a way to convert it to money if you cannot or will not spend it.

Fees, timing, and what to watch for

Gift cards often carry hidden costs that reduce the balance over time. Inactivity fees — charged when you do not use the card for a set period, usually 12 months — can be $2 to $5 per month. Some cards also charge monthly maintenance fees regardless of use. These fees are disclosed in the card's terms, but they are straightforward to miss. If you have a gift card sitting unused, moving the money sooner protects it from these charges.

Timing varies by method. ATM withdrawals and store cash back are when ready or next-day. Digital wallet transfers take three to five business days. Resale marketplace payouts take five to ten business days. If you need the money quickly, ATM or cash back is fastest. If you can wait, a digital wallet transfer may have lower fees.

Keep receipts and records of any transfers or withdrawals. If a transfer does not appear in your bank account within the stated timeframe, you will need proof that you initiated it.

Frequently Asked Questions

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

No. A store gift card is tied to the card itself, not to a person or account. You can give the physical card to someone else, or you can spend it and give them the cash, but you cannot move the balance to another person's bank account directly. Some retailers let you transfer a gift card balance to another gift card in that retailer's system, but that still does not move money to a bank.

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

You can still use it. Combine it with another payment method at checkout — for example, use $8 from the gift card and pay the remaining $12 with a debit card. Some retailers let you do this in one transaction. If the balance is very small and the card charges inactivity fees, it may be worth spending it quickly rather than letting fees eat into it.

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

No. A gift card is not income; it is a transfer of value you already received. Moving it to your bank account does not create a taxable event. However, if you sell the card on a resale marketplace for less than face value, you cannot deduct the loss on your taxes — the loss is personal.

Can I use a gift card to open a bank account or make a deposit?

Most banks do not accept gift cards as a form of deposit. You need to convert the gift card to cash or move it to a debit card first, then deposit the cash or use the debit card to fund the account. Check with your specific bank, as policies vary.

What if my gift card is expired?

Federal law prohibits expiration dates on gift cards issued after 2010, with limited exceptions for cards issued by small retailers. If your card has an expiration date that has passed, contact the issuer to ask whether the balance can still be accessed. Some issuers will honor expired cards; others will not. The card's terms will specify the policy.