No, you cannot deposit a gift card directly into a bank account
A gift card is not money—it is a stored value card tied to a specific retailer or payment network. Your bank will not accept it as a deposit because the bank has no way to convert it into funds it can hold. The card itself has no routing number, account number, or connection to the banking system. If you try to deposit a physical gift card at an ATM or through mobile deposit, the transaction will fail.
What you can do instead depends on what kind of gift card you have and whether the issuer offers a cash-out option. Some gift cards can be converted to money through specific steps, but others cannot. The process is different for each type.
Key Takeaways
- Physical gift cards cannot be deposited into a bank account because they are not recognized as currency by the banking system.
- Visa, Mastercard, and American Express gift cards can sometimes be transferred to a linked bank account through the card issuer's website or app.
- Retailer-specific gift cards (Target, Amazon, Walmart) have no built-in cash-out feature and must be spent at that retailer or sold to a third party.
- PayPal and Square Cash can receive transfers from some gift cards, and you can then move that money to your bank account, though fees may apply.
- Selling unused gift cards on resale platforms is an option, but you will receive less than face value and should verify the platform's reputation before listing.
How network gift cards (Visa, Mastercard, Amex) work differently
A network gift card is issued by Visa, Mastercard, or American Express and works like a prepaid debit card. Because it is tied to a payment network rather than a single store, it has more flexibility than a retailer gift card. You can spend it anywhere that accepts that card brand.
Some network gift cards allow you to transfer the remaining balance to a bank account. Log into the card issuer's website or mobile app, look for a "transfer to bank" or "cash out" option, and follow the prompts. You will need to provide your bank account number and routing number. The transfer typically takes one to three business days. Not all network gift cards offer this feature—check the terms on the back of the card or the issuer's website to confirm.
If the card does not have a transfer option, you can use it to make purchases and then return items for a refund to your bank account. This works only if you buy something you can return; it is not a direct way to convert the card to cash.
Retailer gift cards have no direct cash-out path
A retailer gift card from Target, Walmart, Amazon, Best Buy, or a restaurant chain is loaded with value that can only be spent at that retailer. There is no official way to transfer the balance to your bank account. The card issuer does not offer a cash-out feature because the card is designed to keep money within their ecosystem.
Your options are limited to spending the card at that retailer or selling it. If you sell it, you will receive less than the face value—typically 70 to 90 percent depending on demand and the platform. Resale sites like CardCash, Raise, and Decluttr buy unused gift cards, but they take a cut and the process takes several days to a week for payment to reach your bank account.
If you have a retailer gift card with a small balance that you are unlikely to use, the fastest option is often to spend it on something you need anyway rather than go through the effort of selling it.
Using PayPal or Square Cash as an intermediary
Some digital payment platforms allow you to link a gift card and then transfer the balance to your bank account. PayPal lets you add certain prepaid cards and gift cards to your account, though the process varies by card type. Once added, you may be able to transfer the balance to a linked bank account, but PayPal does not may provide this works for all gift cards.
Square Cash (now called Cash App) has similar limitations. You can add a gift card to the app in some cases, but the ability to cash out depends on the card issuer and whether they allow third-party transfers. Neither platform will accept a retailer-specific gift card.
Before attempting this route, check the gift card issuer's terms to see whether they allow transfers to third-party payment platforms. Some issuers block this to prevent fraud. If the transfer is blocked, the platform will reject the card when you try to add it.
Selling gift cards on resale platforms
If you have an unused gift card and want to convert it to cash, resale platforms are the most straightforward option—though you will not receive full value. Popular platforms include CardCash, Raise, Decluttr, and Gameflip (for gaming cards). Each platform works slightly differently, but the basic process is the same: you list the card, a buyer purchases it, and you receive payment to your bank account.
Expect to receive 70 to 90 percent of the card's face value, depending on the retailer and current demand. Popular retailers like Amazon and Target typically fetch higher percentages than niche or regional stores. The platform takes a commission, and some charge a listing fee as well.
Payment to your bank account usually takes five to ten business days after a sale completes. Before listing, verify that the platform is reputable by checking reviews and confirming they have been in business for at least a few years. Avoid platforms that ask you to ship the physical card; legitimate resale sites work with digital delivery codes or account transfers.
What happens if you try to deposit a gift card at an ATM
If you attempt to deposit a physical gift card at an ATM using mobile deposit or by inserting it into the machine, the transaction will fail. ATMs are designed to accept only currency and checks. A gift card has no MICR line (the magnetic stripe at the bottom of a check), no account number linked to a bank, and no way for the ATM to read it as a financial instrument.
If you try mobile deposit by photographing a gift card, the bank's image processing system will reject it automatically. Some banks may flag the attempt as suspicious activity, so do not repeatedly try to deposit the same card.
Frequently Asked Questions
Can I use a gift card to open a bank account?
No. Banks require an initial deposit in the form of actual currency or a check, not a gift card. You must convert the gift card to cash or transfer it to a bank account first, then use that money to fund the account.
What if my gift card has a very small balance left?
If the balance is under $5, most resale platforms will not accept it because the payout would be too small after their commission. Your best option is to spend it at the retailer or combine it with another payment method to make a purchase.
Do I lose money when I sell a gift card?
Yes. Resale platforms pay 70 to 90 percent of face value, so you lose 10 to 30 percent. The exact amount depends on the retailer and how quickly the card sells. Popular cards sell faster and at higher percentages.
Can I transfer a gift card balance to someone else's bank account?
Not directly. If the card issuer offers a transfer-to-bank feature, the money goes only to the account holder's bank account. To give money to someone else, you would need to transfer it to your account first, then send it to them through a separate payment method.
Are there fees for transferring a network gift card to my bank account?
Most network gift card issuers do not charge a fee to transfer the balance to your bank account. However, check the card's terms or the issuer's website to confirm, as some may charge a small fee or have minimum balance requirements.