You cannot deposit a gift card directly into a bank account, but you can move the money in three ways

A gift card is not a bank account and banks will not accept it as a deposit. However, you can transfer the money from the card to your bank account through a third party, spend it at a merchant and deposit cash or a check instead, or use the card to pay down a loan or credit card balance. The method that works depends on what kind of gift card you have and what the issuer allows.

The most common route is to use a third-party payment app that accepts gift cards as a funding source — PayPal, Square Cash, or Venmo, for example — and then transfer the balance from that app to your bank account. This works for most Visa, Mastercard, and American Express gift cards, but not for store-specific cards like Target or Amazon. Another option is to use the gift card to buy something you would buy anyway, then deposit the cash or check you would have spent on that item. A third route, if the card is a Visa or Mastercard, is to use it to pay a credit card or loan bill, which frees up money in your checking account to move around.

Key Takeaways

  • Store-specific gift cards (Target, Amazon, Starbucks) cannot be moved to a bank account at all — you must spend them at that merchant or sell them.
  • Visa, Mastercard, and American Express gift cards can be transferred to PayPal, Square Cash, or similar apps, then moved to your bank account, though each app charges a fee or requires a minimum balance.
  • Using a gift card to pay a credit card or loan bill indirectly frees up money in your checking account, but does not move the card's balance into the bank.
  • Selling a gift card on a resale platform like CardCash or Raise converts it to cash, which you can then deposit, though you will receive less than the card's face value.

How to transfer a Visa, Mastercard, or Amex gift card using a payment app

PayPal and Square Cash both allow you to add a Visa, Mastercard, or American Express gift card as a payment method, then transfer the balance to a linked bank account. The process is the same for both: open the app, go to the wallet or payment method section, add the gift card as a card, and request a transfer to your bank account.

PayPal charges a 1.75% fee for transfers to a bank account (or 1.5% for transfers to PayPal Credit), which means a $100 gift card nets you $98.25. Square Cash does not charge a fee for standard transfers, but they take one to three business days. Venmo also accepts gift cards and transfers to bank accounts for free, but Venmo is designed for peer-to-peer transfers and may flag large or frequent transfers as suspicious activity. If you use Venmo this way, transfer smaller amounts or send the money to yourself through a second account to avoid a hold.

Store-specific gift cards — Amazon, Target, Walmart, Starbucks — cannot be added to these apps. If you have a store card, you must either spend it at that merchant or sell it on a resale platform.

Selling a gift card for cash you can deposit

Resale platforms like CardCash, Raise, and Decluttr buy unused gift cards at a discount and pay you through bank transfer, PayPal, or check. The discount varies by card type and current demand — a $100 Amazon card might sell for $92 to $97, while a less popular retailer might fetch $80 to $85. The platform takes a commission (usually 5% to 15%), and you receive the remainder.

The process is straightforward: list the card on the platform, provide the card number and PIN when a buyer is found, and the platform deposits your payment within one to five business days. Most platforms verify the card balance before paying you, so you cannot sell a card with a lower balance than you claimed. If you have multiple gift cards, selling them together can sometimes fetch a better rate than selling individually.

This route makes sense if you do not want to spend the card at its original merchant, but expect to receive 10% to 20% less than the card's face value.

Using a gift card to pay a bill and freeing up cash

If the gift card is a Visa, Mastercard, or American Express, you can use it to pay a credit card bill, loan payment, or utility bill online. This does not move the gift card balance into your bank account, but it does free up money you would have spent on that bill, which you can then move or spend as needed.

For example: you have a $100 gift card and a $100 credit card bill due. Use the gift card to pay the credit card bill. Your credit card balance is now zero, and you have $100 in your checking account that you would have used to pay the bill — money you can now transfer, withdraw, or spend elsewhere. This is an indirect way to convert the gift card to usable cash, but it only works if you have a bill to pay.

Why banks will not accept gift cards as deposits

A gift card is a prepaid card issued by a retailer or payment network, not a bank account or check. Banks have no way to verify the card's balance, confirm the funds are legitimate, or process it through the banking system. Depositing a gift card would be like trying to deposit a coupon — the bank has no mechanism to convert it to funds in your account.

Some banks offer their own prepaid cards or gift cards, and those can sometimes be linked to a bank account for transfers, but only if the card was issued by that specific bank. A Visa gift card from a grocery store, for example, cannot be deposited into any bank account.

What to do if the gift card has a low balance

If the card has less than $5 or $10 remaining, most payment apps will not process a transfer because the fee exceeds the balance. In this case, spend the remaining balance at the original merchant — buy a coffee, a snack, or a small item — and deposit the cash you save instead. Alternatively, combine the low-balance card with another gift card on the same network (Visa to Visa, for example) by using both to make a single purchase, then transfer the remainder.

Resale platforms also typically have a minimum balance requirement, usually $5 to $10, so a nearly empty card may not be worth selling.

Frequently Asked Questions

Can I deposit a store gift card like Amazon or Target directly into my bank?

No. Store-specific gift cards are not connected to the banking system and cannot be deposited. You must spend the card at that retailer, sell it on a resale platform for less than face value, or use it to buy something you would buy anyway and deposit the cash you save.

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

The ATM will reject it. Gift cards are not checks or bank cards and cannot be read by ATM machines. You must use one of the methods described above to move the money.

Do payment apps charge a fee to transfer gift card money to my bank account?

Most do. PayPal charges 1.75% per transfer, while Square Cash charges no fee but takes one to three business days. Venmo is free but designed for peer transfers, so large or frequent transfers may trigger a review. Check the app's fee schedule before transferring.

Can I use a gift card to pay my bank loan or mortgage?

Yes, if the gift card is a Visa, Mastercard, or American Express. You can use it to make an online payment toward a loan or mortgage, which frees up money in your checking account. However, this does not move the gift card balance into your bank account — it simply redirects the card's value toward a bill you owe.

What if the gift card issuer goes out of business?

If the card is a Visa or Mastercard, the payment network (Visa or Mastercard) guarantees the balance, so your money is protected. If it is a store-specific card and the store closes, the card becomes worthless. This is another reason to move the balance to your bank account or spend it quickly if you are concerned about the retailer's stability.