You cannot deposit a gift card directly into a checking account

Banks do not accept gift cards as deposits. A gift card is a prepaid card issued by a retailer or payment network, not cash or a check. Your bank's deposit system — whether you use an ATM, mobile app, or teller — is built to process only currency, checks, and electronic transfers. Trying to deposit a gift card will be rejected.

What you can do instead depends on what kind of gift card you have and whether you want to convert it to cash or spend it as-is. The most practical routes are converting the card to cash at the retailer, transferring the balance to a payment app, or selling the card to a third party.

Key Takeaways

  • Gift cards cannot be deposited into a checking account because banks only accept currency, checks, and electronic transfers.
  • You can convert a gift card to cash by making a purchase at the retailer and requesting cash back, or by visiting customer service.
  • Some gift cards can be linked to payment apps like PayPal or Venmo, which then transfer funds to your bank account.
  • Third-party resale sites like Raise and CardCash will buy your gift card for cash, though you receive less than the card's face value.
  • Visa and Mastercard gift cards are easier to convert than store-specific cards because more merchants accept them.

Converting a gift card to cash at the retailer

If the gift card is from a specific store — Target, Best Buy, Walmart, or similar — you can spend it there and request cash back on the difference. Make a purchase for less than the card's balance, then ask the cashier for the remainder in cash. This works at most major retailers, though some have limits on how much cash back they will give.

If you do not want to buy anything, visit the customer service desk and ask whether they will exchange the card for cash. Policies vary widely. Some retailers will do this without question; others will only exchange it if the card was purchased at their store and you have a receipt. A few will not exchange for cash at all. Calling ahead saves a trip.

Linking a gift card to a payment app

Visa and Mastercard gift cards can often be added to payment apps like PayPal, Venmo, or Google Pay, which then lets you spend the balance like a regular debit card. Some apps will also let you transfer the balance to your checking account directly, though this varies by app and card type.

To add the card, open the app, go to your payment methods or wallet, and select "Add a card." Enter the card number, expiration date, and CVV just as you would for a credit card. Once added, you can use the app to send money to your bank account or to other people. Not all gift cards work with all apps — store-specific cards rarely do — so check the app's help section first.

Selling a gift card for cash

If you do not want to spend the card or convert it yourself, resale sites like Raise, CardCash, and Decluttr will buy it from you. You list the card, set a price (usually 70 to 95 percent of face value), and the site handles the sale. Once a buyer purchases it, you send the card details to the site, they verify the balance, and you receive payment via bank transfer or PayPal.

The trade-off is that you lose 5 to 30 percent of the card's value depending on demand. Popular retailers like Amazon and Target cards sell closer to face value; niche or regional stores sell for much less. The process takes a few days to a week from listing to payment. If you need cash quickly and the card is from a less common retailer, this may still be faster than trying to spend it.

Why banks will not accept gift cards as deposits

Banks process deposits through specific channels: cash counted by hand or machine, checks scanned and verified, and electronic transfers from other accounts. A gift card is none of these. It is a stored-value card — the retailer or payment network holds the money, not your bank. Your bank has no way to verify the balance, no agreement with the card issuer to accept it, and no system to convert it into funds in your account.

Attempting to deposit a gift card at an ATM or through mobile deposit will simply fail. The machine will not read it as a valid deposit item, or if it does scan, the bank will reject it and return it to you.

Differences between gift card types

Not all gift cards work the same way. Visa and Mastercard gift cards are the easiest to convert because they work like debit cards anywhere those networks are accepted. You can use them online, at any merchant, or link them to payment apps. Store-specific gift cards — from Target, Sephora, or a local restaurant — can only be spent at that retailer or its partners. They cannot be linked to payment apps or easily converted to cash unless the retailer offers an exchange.

Digital gift cards (sent via email or text) work the same way as physical ones, but you do not have a card to hold. You receive a code or link, and the retailer loads the balance into your account with them. Prepaid cards issued by your employer or a government program (like unemployment benefits) are different — these can sometimes be linked to your checking account or used to transfer funds, depending on the card issuer.

What to do if a gift card has a low balance

If the card has only a few dollars left, the effort to convert it may not be worth it. Resale sites typically have minimum balances of $5 to $10, and some retailers will not bother with a cash exchange for a small amount. In these cases, it is usually simpler to spend the remaining balance on a small purchase the next time you shop there, or donate the card to someone who will use it.

If you have multiple low-balance gift cards, some retailers let you combine them at checkout or through their app. Check the retailer's website or ask a cashier whether this is an option.

Frequently Asked Questions

Can I deposit a Visa gift card into my checking account?

No, but Visa gift cards are easier to convert than store-specific cards. You can link them to payment apps like PayPal or Venmo, which can then transfer funds to your bank account. You can also use the card to make a purchase and request cash back, or sell it on a resale site.

What if the gift card is from an online retailer?

Online retailer gift cards work the same way as physical store cards — they can only be spent at that retailer. You cannot deposit them into a bank account. Your best option is to spend the balance or sell the card on a resale site if you do not plan to shop there.

Can I transfer a gift card balance to PayPal?

Visa and Mastercard gift cards can be added to PayPal as a payment method, and some versions allow you to transfer the balance to your bank account. Store-specific gift cards cannot be added to PayPal. Check PayPal's help section or the gift card issuer's website to confirm whether your card supports transfers.

Do I lose money when I sell a gift card?

Yes, resale sites typically pay 70 to 95 percent of the card's face value. Popular retailers' cards sell closer to full value; less common ones sell for significantly less. The exact amount depends on current demand for that card.

What happens if I try to deposit a gift card at an ATM?

The ATM will not accept it. It is not a valid deposit item — the machine will either reject it outright or it will be returned to you by the bank after processing fails.