Direct transfers from gift cards to bank accounts are rare, but you have working alternatives
Most gift cards cannot transfer money directly to a bank account. The card issuer—whether Visa, Mastercard, a retailer, or a digital wallet—does not offer that function. What you can do instead depends on the card type: spend it at the retailer or merchant, transfer the balance to a digital wallet, use a third-party service that converts the card to cash, or sell the card to someone else. Each route has different fees, timing, and restrictions.
The reason direct transfer does not exist is structural. Gift cards are prepaid accounts with limited permissions. The issuer controls what the card can do, and most issuers have not built the infrastructure to send money outbound to external bank accounts. A few exceptions exist—some Visa and Mastercard gift cards can be added to digital wallets and then used to fund a bank transfer—but these are not the norm and depend on which card and which bank you use.
Key Takeaways
- Visa and Mastercard gift cards can often be added to digital wallets like PayPal, Apple Pay, or Google Pay, which then let you transfer the balance to a linked bank account.
- Retailer-specific gift cards (Target, Amazon, Best Buy) can only be spent at that retailer or converted to cash through a resale platform or third-party service, which typically charges a fee.
- Third-party services like CardCash and Raise buy gift cards at a discount and pay you via bank transfer, but you receive less than the card's face value.
- Spending the card at the retailer or merchant is free and immediate, but requires you to make a purchase rather than extract cash.
- Some banks and credit unions offer cash-back options if you use a gift card at a point-of-sale terminal, though this depends on the card type and merchant.
Adding a Visa or Mastercard gift card to a digital wallet
If your gift card is a Visa or Mastercard (not a retailer-specific card), you can add it to PayPal, Apple Pay, Google Pay, or similar services. Once added, the card appears as a payment method in that wallet. You can then use the wallet to send money to a linked bank account, though the process varies by wallet.
PayPal is the most straightforward route. Add the gift card as a payment method, then transfer money from that card to your PayPal balance, and finally transfer from PayPal to your bank account. The first transfer (card to PayPal) is instant; the second (PayPal to bank) takes one to three business days and is free if you use standard transfer. Apple Pay and Google Pay do not offer direct transfers to bank accounts, but they can be used to pay bills or send money through apps like Venmo or Square Cash, which then let you move the balance to a bank account.
Check your card's terms before you try this. Some gift cards restrict transfers or require the card to be registered with the issuer first. Visa and Mastercard gift cards sold by banks or retailers usually allow it; cards issued by smaller companies or with unusual restrictions may not.
Selling a gift card through a resale platform
Platforms like CardCash, Raise, and Gameflip buy gift cards from you at a discount and pay you via bank transfer or check. The discount varies by card type and current demand—popular retailers like Amazon or Target typically sell for 85 to 95 percent of face value, while niche or less popular cards may sell for 50 to 70 percent. The fee is built into the price you receive, not charged separately.
The process is simple: list the card on the platform, wait for a buyer, and once sold, the platform sends you payment. Most platforms deposit funds to your bank account within three to five business days. Some offer faster payouts (same-day or next-day) for a small fee. You will need to provide the card number and PIN, so only use platforms with strong security records and buyer protection policies.
The trade-off is clear: you get cash quickly and without spending the card, but you lose 5 to 50 percent of the value depending on the card and market. This makes sense if you do not want the card or need cash urgently, but it is not a good option if the card is worth a lot and you can spend it instead.
Using a third-party cash advance or conversion service
Some services like Cardtonic or GiftCard Granny let you borrow against a gift card balance or convert it to cash without selling it outright. These services typically charge a fee (5 to 15 percent of the balance) and may require you to verify the card's balance and PIN. The money is deposited to your bank account within one to three business days.
These services are useful if you want to keep the card but need immediate access to some of its value. However, the fee is higher than resale platforms, and the service is less common—not all card types are accepted. Read the terms carefully to understand what happens if the card's balance is lower than expected or if the issuer cancels the card after you have already received payment.
Spending the card at the retailer or merchant
The simplest and most cost-effective option is to spend the card where it is accepted. If it is a retailer-specific card (Target, Best Buy, Amazon), use it to buy something you need or want. If it is a Visa or Mastercard, use it anywhere those cards are accepted. There is no fee, no discount, and no waiting—you get the full value immediately.
The downside is that you must make a purchase. If you need cash instead of goods, this does not solve your problem. However, if you were going to spend money anyway, using the gift card first preserves your cash for other needs.
Requesting cash back at a point-of-sale terminal
Some retailers allow cash back when you use a gift card to make a purchase. You buy something, then ask for cash back on the remaining balance. This is not may provide—it depends on the retailer's policy and the card type. Visa and Mastercard gift cards are more likely to support it than retailer-specific cards. Grocery stores and pharmacies are more likely to offer it than specialty retailers.
If the retailer allows it, you get the cash immediately with no fee. The catch is that you must make a purchase first, and the amount of cash back is often capped (sometimes at $20 or $50). Call the retailer or check their website before you go to confirm they offer this option.
Frequently Asked Questions
Can I transfer a gift card balance to another person's bank account?
No. Gift cards cannot be transferred directly to anyone's bank account. You can spend the card, sell it on a resale platform, or use it to fund a digital wallet that the other person controls, but the card issuer does not support direct balance transfers to external accounts.
What if my gift card is from a small retailer or restaurant?
Small retailer cards are harder to convert. Resale platforms may not accept them, and digital wallets do not support them. Your best options are to spend the card at that retailer, ask the retailer directly if they offer cash back, or contact the issuer to ask about balance transfer options. Some small retailers will refund the balance as a check or direct deposit if you ask.
Do I have to pay taxes on money I get from selling a gift card?
Generally, no. Selling a gift card for cash is not taxable income because you are converting an asset you already own, not earning new income. However, if you sell a gift card for more than its face value (rare), the difference may be taxable. Consult a tax professional if you are unsure about your specific situation.
How long does it take to transfer money from a gift card to a bank account?
It depends on the method. Adding a card to PayPal and transferring to your bank takes one to three business days total. Selling on a resale platform takes three to five business days. Cash back at a retailer is instant. Digital wallet transfers vary by wallet and bank, typically one to three business days.
Is it safe to give my gift card number to a third-party service?
It is as safe as the service's security practices. Use platforms with strong reputations, two-factor authentication, and buyer protection policies. Avoid services that ask for your PIN via email or phone. Check reviews and verify the platform's security certifications before you share card details.