You cannot deposit a gift card into a checking account the way you deposit a check

A gift card is not a financial instrument that banks recognize for deposit. Your bank's deposit system — whether you use an ATM, mobile app, or teller — is built to accept checks, cash, and transfers from other bank accounts. A gift card is a prepaid card issued by a retailer or payment network, and it has no routing number, account number, or the other data a bank needs to process a deposit.

However, you have several ways to move money from a gift card into your checking account. The most direct route depends on what kind of gift card you have and which bank you use. Some paths are instant; others take a few business days.

Key Takeaways

  • Gift cards cannot be deposited directly into a checking account because banks do not recognize them as valid deposit instruments.
  • You can transfer money from a gift card to your checking account by using a third-party payment app, making a purchase and depositing cash, or converting the card through a retailer's website.
  • Visa, Mastercard, and American Express gift cards work with most payment apps; store-branded cards usually do not.
  • The fastest method is typically a payment app like PayPal or Venmo, which can move money to your bank in one to three business days.

Using a payment app to move gift card money to your bank

Apps like PayPal, Venmo, Square Cash, and Google Pay let you link a gift card as a payment method, then transfer the balance to your bank account. This works best with open-loop gift cards — Visa, Mastercard, or American Express cards that work anywhere those networks are accepted. Store-branded cards (Target, Amazon, Walmart) typically do not work with these apps because they are closed-loop cards tied only to that retailer.

The process varies slightly by app, but the general steps are: link your gift card to the app, add your checking account as a transfer destination, and request a transfer. PayPal, for example, lets you add a Visa gift card to your wallet, then send money to your bank account; the transfer usually takes one to three business days. Venmo works similarly but is designed more for peer-to-peer transfers, so you may need to send the money to another person first, then withdraw it to your bank.

Check your app's terms before you start — some charge a small fee for linking certain card types, and some have minimum or maximum transfer amounts. Most do not charge to transfer money from a gift card to your own bank account, but fees can apply if you are sending money to another person.

Converting a gift card through the retailer's website

Some retailers let you convert a gift card balance into a store credit or account balance that you can then withdraw or transfer. Amazon, for instance, lets you add a gift card balance to your Amazon account, and if you have a linked bank account, you can request a refund of unused balance in some cases — though this is not may provide and depends on Amazon's current policies.

Target, Walmart, and other major retailers sometimes offer similar options through their apps or websites, but the rules differ by company and change over time. Your best approach is to log into the retailer's website, look for account settings or gift card management, and see whether a cash-out or transfer option is available. If nothing appears, contact the retailer's customer service directly and ask whether you can convert the card to a refund or account credit.

This method is slower than a payment app because it depends on the retailer's process, which can take one to two weeks. It also only works if the retailer offers the option — many do not.

Spending the gift card and depositing the cash

The simplest method, though not always the most convenient, is to use the gift card to buy something, then deposit the cash you would have spent. If you have a $50 gift card and you were planning to buy groceries anyway, use the card at the store and deposit the $50 in cash you saved into your checking account. The money ends up in your account, and you have the goods you needed.

This works for any gift card, including store-branded ones. The downside is that it requires you to make a purchase and have cash on hand to deposit, so it is not useful if you need the money urgently or if the card is for a store where you do not shop regularly.

Selling or trading a gift card for cash

Websites like CardCash, Raise, and Decluttr let you sell unused gift cards for cash, usually at a discount. You list the card, a buyer purchases it, and the site sends you money via direct deposit to your bank account or a check. The discount varies — a $100 gift card might sell for $85 to $95 depending on the retailer and current demand.

The process typically takes three to seven business days from the time a buyer purchases your card until the money reaches your bank account. You will need to photograph the card's back and front (or provide the code) to prove you own it, and some sites require you to verify the balance before listing.

This method works for any gift card, but you lose money in the discount. It is most useful if you have a card you will not use and need to convert it to cash quickly without spending it first.

What does not work and why

You cannot deposit a gift card at an ATM, through mobile deposit, or by handing it to a bank teller. Banks do not have the infrastructure to read gift card data or process them as deposits because gift cards are not linked to the banking system. Attempting to deposit a gift card will either result in the machine rejecting it or the teller explaining that it cannot be processed.

You also cannot transfer a gift card balance directly to another person's bank account using your bank's transfer system. The gift card issuer (the retailer or payment network) does not communicate with your bank in a way that allows this kind of transfer.

Which method is fastest

If you need the money in your checking account quickly, a payment app is usually your best option. PayPal, Venmo, and similar services can move money from an open-loop gift card to your bank in one to three business days. Selling the card through a resale site takes longer — three to seven days — but works for any card type. Converting through a retailer's website can take one to two weeks and is not available for all retailers.

The slowest option is spending the card and depositing cash, which depends on when you can make a purchase and get to a bank or ATM. However, it is the only method that does not involve a third party or a discount, so it may be worth the extra time if you were going to spend the money anyway.

Frequently Asked Questions

Can I deposit a Visa or Mastercard gift card directly into my bank account?

No, not directly. However, you can link a Visa or Mastercard gift card to a payment app like PayPal or Venmo and transfer the balance to your checking account in one to three business days. This is the fastest way to move the money without spending it.

What if my gift card is from a specific store like Target or Walmart?

Store-branded gift cards do not work with most payment apps. Your options are to spend the card and deposit the cash you save, contact the retailer to ask about a refund or account credit, or sell the card through a resale site like Raise or CardCash at a discount.

Will I lose money if I sell my gift card online?

Yes, resale sites typically buy gift cards at a discount — usually 10 to 20 percent below face value. A $100 card might sell for $80 to $90. The discount depends on the retailer and how much demand there is for that card at the time you list it.

Can my bank transfer money from my gift card to my checking account?

No, your bank cannot initiate a transfer from a gift card. However, you can use a third-party payment app to link the gift card and request a transfer to your bank account. The app acts as the intermediary between the gift card and your bank.

How long does it take to move money from a gift card to checking using PayPal?

Once you link your gift card to PayPal and request a transfer to your bank account, the money typically arrives in one to three business days. The exact timing depends on your bank's processing speed and whether you request the transfer on a business day or weekend.