Gift cards cannot be deposited directly into a checking account

A gift card is not money—it is a prepaid balance tied to a specific retailer or payment network. Your bank will not accept it as a deposit because it has no routing number, account number, or direct connection to the banking system. If you try to deposit a physical gift card at an ATM or through mobile deposit, the transaction will be rejected.

However, you can convert a gift card into cash or a bank transfer through several methods, and some of those methods do end up in your checking account. The route you take depends on what kind of gift card you have and how much effort you want to put in.

Key Takeaways

  • Physical gift cards cannot be deposited directly; they must be converted to cash or a digital payment first.
  • Visa, Mastercard, and American Express gift cards can often be transferred to a PayPal account or used to fund a digital wallet, which can then move money to your bank.
  • Retailer-specific gift cards (Target, Amazon, Starbucks) can be sold on resale platforms like Raise or CardCash, with proceeds sent to your bank account.
  • Some gift cards allow you to request a balance transfer or cash-out through the issuer's customer service, though policies vary widely.
  • Converting a gift card usually takes three to seven business days if you use a resale platform or digital wallet transfer.

Converting network gift cards through digital wallets and payment apps

If you have a Visa, Mastercard, or American Express gift card, you can load it into a digital payment app and then transfer the balance to your checking account. PayPal is the most straightforward option: add the gift card as a payment method, transfer the balance to your PayPal wallet, and then move it to your linked bank account. The process takes two to three business days for the bank transfer.

Google Pay and Apple Pay also accept these network gift cards, but they are designed for spending rather than cashing out. If you add a Visa gift card to Apple Pay, you can spend it at retailers, but you cannot directly withdraw the balance to your bank. PayPal remains the best option for converting network cards to actual bank deposits.

Square Cash, Venmo, and Cash App all accept Visa and Mastercard gift cards as funding sources, but again, these apps are built for peer-to-peer transfers and spending, not for moving money into a bank account. If you do add a gift card to one of these apps, you would need to transfer the balance to a linked bank account separately, and not all of them support that feature clearly.

Selling retailer gift cards on resale platforms

Retailer-specific gift cards—Amazon, Target, Starbucks, Best Buy, and hundreds of others—can be sold on secondary marketplaces. Raise and CardCash are the two largest platforms. You list the card and its balance, a buyer purchases it at a discount (usually 5 to 15 percent off face value), and the platform deposits the proceeds into your bank account.

The process is straightforward: create an account, photograph or enter the card details, set your price, and wait for a buyer. Once sold, you provide the card number to the buyer, and the platform releases payment to you. Most platforms deposit funds within three to seven business days after the sale completes.

The trade-off is the discount. A $100 Target gift card might sell for $85 to $90 on Raise, depending on demand. Popular retailers and cards with no expiration date sell faster and at smaller discounts. Seasonal cards (holiday gift cards) and cards close to expiration sell at steeper discounts or may not sell at all.

Requesting a cash-out or balance transfer from the card issuer

Some gift card issuers allow you to request a cash-out or balance transfer directly. This is rare and depends entirely on the issuer's policy. Visa and Mastercard gift cards sometimes allow you to request a refund to the original payment method (usually a credit card or bank account), but only if the card was purchased with that method and within a certain timeframe.

Retailer gift cards almost never offer this option. Amazon, Target, and Starbucks do not have a standard process to convert a gift card balance to cash. However, some retailers will issue a refund if the card was purchased as a mistake or within a very short window—usually 30 days. This is not a cash-out feature; it is a return policy.

Your best bet is to contact the card issuer's customer service and ask directly. Have the card number and PIN ready. Be prepared to hear no, especially for retailer cards.

Using the gift card to make a purchase, then returning it for a refund

This method works only in specific situations and requires the original receipt. If you have a retailer gift card and the receipt showing it was purchased, you can sometimes return the card itself for a refund to the original payment method. This is not a feature most retailers advertise, and policies vary.

Target and Best Buy, for example, may refund a gift card to the original payment method if you have proof of purchase and the card has not been used. Starbucks and Amazon are less likely to do this. The refund goes to the card or account used to buy the gift card, not to your checking account directly—unless the gift card was purchased with a debit card linked to your checking account.

This method is slow, uncertain, and only works if you have the receipt. It is not a reliable way to convert a gift card to bank funds.

What to do if the gift card is damaged or has a low balance

If a gift card is physically damaged—scratched, bent, or the number is unreadable—contact the issuer's customer service with proof of the balance. Most issuers will issue a replacement card or transfer the balance to a new card at no cost. This does not put money in your bank account, but it preserves the value so you can use one of the other methods above.

If the balance is very small (under $5), resale platforms may not accept it because the transaction fee eats into the value. In that case, your options are to spend it at the retailer or contact the issuer to ask about a cash-out. Most will say no, but it costs nothing to ask.

Frequently Asked Questions

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

No. ATMs only accept cash and checks. A gift card has no routing number or account number, so the machine will reject it. You must convert the card to cash or a bank transfer through one of the methods above.

Will PayPal charge me a fee to transfer a gift card balance to my bank account?

PayPal does not charge a fee to transfer money from your PayPal balance to a linked bank account. However, if you are transferring to a debit card instead of a bank account, a small fee may apply. Check PayPal's current fee schedule when you set up the transfer.

How much money do I lose selling a gift card on Raise or CardCash?

The discount varies by retailer and card demand. Popular retailers like Amazon and Target typically sell at 5 to 10 percent off face value. Less popular retailers or cards close to expiration may sell at 15 to 25 percent off, or may not sell at all. You set the price, so you control the discount.

Can I deposit a gift card if someone else gave it to me?

Yes. The methods above work regardless of who purchased the card. You can sell it on a resale platform, convert it through PayPal, or spend it at the retailer. The only exception is if you try to return the card for a refund—most retailers require the original receipt, which you would not have if someone else bought it.

What if the gift card issuer is out of business?

If the retailer has closed, the gift card is usually worthless unless the parent company honors it. Some states have laws requiring retailers to honor gift cards even after closure, but enforcement is weak. Resale platforms will not accept cards from defunct retailers. Your only option is to contact the company that owns the brand and ask if they will honor the card.