Most gift cards cannot be transferred directly to a bank account, but you have several ways to convert the balance into usable funds
A gift card is not a bank account—it is a closed-loop payment instrument tied to a single merchant or network. The issuer does not allow you to pull money out and deposit it elsewhere. However, you can spend the balance in ways that effectively move the money into your bank account: by using the card to buy something you would have paid for anyway, by loading it onto a digital wallet linked to your bank, or by selling the card to a third party for cash.
The method that works depends on what kind of gift card you have, how much balance remains, and whether you need the money urgently. Some routes are faster and cost nothing. Others take time or charge a fee. A few carry fraud risk if you are not careful about where you sell.
Key Takeaways
- Closed-loop cards (Starbucks, Target, Walmart) can only be spent at that merchant, but you can buy items you need and use the cash you save for other bills.
- Open-loop cards (Visa, Mastercard, American Express gift cards) can be added to digital wallets like Apple Pay or Google Pay and used anywhere, then you can transfer the remaining balance to your bank if the card issuer allows it.
- Third-party resale sites like Raise and CardCash buy unused gift cards for 60 to 90 percent of face value and deposit cash to your bank account within days.
- Some gift card issuers allow you to request a check or direct deposit of the remaining balance, but this option is rare and usually requires a minimum balance.
- Selling a gift card online carries fraud risk if the buyer claims non-delivery or disputes the transaction, so use only established platforms with buyer and seller protections.
Closed-Loop Cards: Spending Down the Balance
A closed-loop gift card works only at one store or restaurant chain. Starbucks, Target, Walmart, Amazon, and most retail and dining cards fall into this category. You cannot transfer the balance to your bank, but you can use the card to buy things you need, which frees up money in your bank account for other purposes.
For example, if you have a $50 Walmart gift card and you were planning to spend $50 on groceries this week anyway, use the card instead. That $50 stays in your bank account. This is not a direct transfer, but it achieves the same result: the gift card value becomes available cash.
The downside is that you can only use the card at that one merchant. If you have a $100 restaurant gift card but you do not eat out often, you may not be able to spend it all before it expires or before your circumstances change. In that case, resale is a better option.
Open-Loop Cards: Adding to Digital Wallets and Requesting Transfers
An open-loop gift card carries a Visa, Mastercard, or American Express logo and works anywhere that brand is accepted. These cards are more flexible than closed-loop cards, and some issuers allow you to move the remaining balance to your bank account.
First, try adding the card to a digital wallet. Open Apple Pay, Google Pay, or Samsung Pay on your phone, select "Add Card," and enter the gift card number. Once loaded, you can use the card to make purchases anywhere the network is accepted. When the balance runs low, you can spend it down on everyday purchases, which again frees up bank funds for other needs.
Second, check whether the card issuer allows balance transfers or cash-out requests. Some Visa and Mastercard gift card issuers—particularly those sold by banks or financial institutions—permit you to request a check or direct deposit of the remaining balance once the card balance falls below a certain threshold, often $5 or $10. Call the customer service number on the back of the card and ask if this option is available. There is usually no fee, but the process can take one to two weeks.
Reselling Gift Cards on Third-Party Platforms
If you want cash quickly and do not want to spend the card down, you can sell it to a resale platform. Sites like Raise, CardCash, Decluttr, and Gameflip buy unused gift cards and pay you a percentage of the face value. The payout rate varies by card type and current demand—popular retailers like Amazon and Target typically fetch 80 to 95 percent of face value, while less common merchants may go for 60 to 75 percent.
The process is straightforward: list the card on the platform, provide the card number and PIN (if applicable), and wait for a buyer. Once sold, the platform deposits cash to your bank account via ACH transfer, usually within two to five business days. Some platforms offer faster payouts for a small fee.
The main risk is fraud. If you sell a card and the buyer later claims they did not receive it or that the balance was already spent, you may lose the money. Use only platforms with buyer and seller protections—Raise and CardCash both hold payment until the buyer confirms the card works. Never sell a gift card through a personal payment app like Venmo or Cash App unless you know the buyer personally, because those platforms do not protect you if the transaction goes wrong.
What Happens If the Card Has a Small Balance Left
Many gift cards end up with a few dollars remaining—not enough to make a full purchase, but too much to ignore. You have three options: combine it with another payment method at checkout, add it to a digital wallet and use it for a small purchase, or sell it on a resale platform.
Most retailers allow you to pay with multiple methods at once. Use the gift card first, then pay the remaining balance with your debit card or credit card. This works at most major chains, though some smaller merchants may not support split payments—call ahead if you are unsure.
If the balance is very small (under $2), resale platforms may not accept it because the payout would be negligible after fees. In that case, spending it down is your only practical option.
Fees and Timing Across Different Methods
| Method | Speed | Fee | Best For |
|---|---|---|---|
| Spending at the merchant | Immediate | None | Any card; frees up cash for other bills |
| Digital wallet + spending | Immediate | None | Open-loop cards; more flexible use |
| Issuer balance transfer | 1–2 weeks | None (usually) | Open-loop cards with low remaining balance |
| Resale platform | 2–5 business days | None (platform takes a cut of payout) | Unused cards; fastest cash conversion |
| Expedited resale payout | Same day or next day | $0.50–$2 | Urgent cash need |
Protecting Yourself When Selling Online
If you decide to sell a gift card, use only established platforms with fraud protections. Raise and CardCash both hold your payment until the buyer confirms the card balance is correct. Decluttr and Gameflip offer similar protections. Before you list, check the platform's refund policy and dispute process.
Never share the full card number and PIN with a buyer outside the platform. Always complete the sale through the platform's messaging system, not email or text. If a buyer asks you to send the card details before payment clears, decline—this is a common scam.
Keep a screenshot or photo of the card balance before you sell, in case you need to prove the balance was correct if a dispute arises. Some platforms ask for this proof anyway.
Frequently Asked Questions
Can I transfer a gift card balance directly to my bank account?
Not directly. Most gift card issuers do not allow balance transfers to external bank accounts. However, some open-loop card issuers (Visa, Mastercard) may allow you to request a check or direct deposit once the balance drops below a threshold. Call the number on the back of the card to ask.
What if I sell a gift card and the buyer says it does not work?
If you sold through Raise, CardCash, or a similar platform with buyer protections, the platform will investigate and either refund the buyer or confirm the card works. You are protected as long as you provided the correct card details. If you sold outside a platform, you have no recourse.
Do I have to pay taxes on gift card resale money?
Selling a gift card for less than face value is generally not a taxable event because you are not making a profit. If you somehow sold it for more than face value, the gain might be taxable, but this is rare. Keep records of the sale in case you are asked.
Can I use a gift card to pay off a credit card or loan?
No. Credit card companies and loan servicers do not accept gift cards as payment. You would need to convert the gift card to cash first, either by spending it down or reselling it, then use that cash to make a payment.
What is the fastest way to get cash from a gift card?
Resale platforms like Raise and CardCash deposit funds within two to five business days. If you need cash the same day, some platforms offer expedited payouts for a small fee ($0.50–$2). Spending the card down at the merchant is immediate but does not give you new cash—it just frees up money you already have.