Most gift cards cannot be transferred directly to a bank account

The short answer is no — you cannot transfer a gift card balance to your bank account the way you would move money between two bank accounts. Gift cards are store credit, not money in a financial system. The card issuer (a retailer, restaurant, or payment network) holds the balance as a liability to you, not as a deposit they can move to your bank.

What you can do instead depends on the type of card and what the issuer allows. Some gift cards can be converted to cash through specific methods, others can be spent down and the remainder lost, and a few can be transferred to another person's card or account. None of these are automatic or instant.

Key Takeaways

  • Visa, Mastercard, and American Express gift cards can sometimes be transferred to a linked bank account or used to pay bills, but store-branded cards (Target, Amazon, Starbucks) cannot.
  • Some payment networks allow you to add the card to a digital wallet and withdraw cash at an ATM, though fees may apply.
  • Selling a gift card on a resale platform like CardCash or Raise converts it to cash, but you receive less than the card's face value.
  • If a gift card sits unused, the balance may expire or be subject to inactivity fees depending on the issuer and your state.

How network gift cards (Visa, Mastercard, Amex) work differently

Visa, Mastercard, and American Express gift cards function more like prepaid debit cards than store credit. They carry a card number, expiration date, and CVV, which means they can be used anywhere those networks are accepted — not just at one retailer.

Because they are prepaid cards, some of them can be linked to a bank account or digital payment service. Visa and Mastercard gift cards can often be added to Apple Pay, Google Pay, or Samsung Pay, which lets you spend the balance at any merchant that accepts contactless payment. Some cards also allow you to link them to PayPal or Venmo, though the balance stays on the gift card and is drawn down as you make purchases — it does not transfer as a lump sum to your account.

A few Visa and Mastercard gift cards issued by banks (not retailers) allow you to transfer the remaining balance to a linked bank account, but this is rare and depends on the specific card product. Check the back of your card or the issuer's website to see if this option exists for yours.

Store-branded gift cards have no direct transfer option

Target, Amazon, Starbucks, Best Buy, and other retailer-specific gift cards are closed-loop systems. The balance exists only within that retailer's ecosystem and cannot be moved to a bank account, another card, or another retailer's system.

Your only options with a store card are to spend it at that retailer, give it to someone else, or sell it on a secondary market. If you do not use the card, the balance may expire. Federal law requires retailers to disclose expiration dates, but many states have laws that prevent expiration or limit inactivity fees — check your state's gift card law or the card's terms for details.

Selling a gift card for cash

Resale platforms like CardCash, Raise, and Decluttr buy unused gift cards from consumers and resell them to other buyers. You list your card, the platform verifies the balance, and you receive payment via bank transfer, check, or PayPal.

The catch is that you will receive less than the card's face value. Discounts typically range from 5 to 25 percent depending on the card's brand, how much demand exists for it, and the platform's fees. A $100 Amazon gift card might sell for $85 to $95. The more niche the retailer, the steeper the discount.

The process usually takes one to two weeks from the time you ship the card (or provide the code) until the money reaches your account. Some platforms offer instant payment for certain popular cards, but at a larger discount. Read the platform's terms carefully — some require you to provide proof of the balance before they pay you.

Using a gift card to pay bills or make transfers

If your gift card is a network card (Visa, Mastercard, Amex), you can use it to pay bills online or by phone anywhere that card is accepted. This does not move the balance to your bank account, but it does convert the card's value into payment for something you owe.

Some people use gift cards to pay credit card bills, utility bills, or loan payments. The transaction processes like any other card payment — the merchant or biller receives the payment, and your gift card balance decreases. This is useful if you want to spend down the card without visiting a physical store, but it does not result in cash in your bank account.

Peer payment apps like Venmo, PayPal, and Cash App do not accept gift cards as a funding source, so you cannot use them to move a gift card balance to another person's bank account. However, if you spend the gift card on something and then sell that item, you could deposit the cash from the sale into your bank account — but that is indirect and defeats the purpose.

ATM cash withdrawals and fees

Some prepaid Visa and Mastercard gift cards allow you to withdraw cash at an ATM using the card's PIN. This is one of the closest methods to converting a gift card to cash in your bank account, though the money goes into your hand first, not directly into your account.

The catch is that ATM withdrawals often carry fees. The gift card issuer may charge $2 to $3 per withdrawal, and your bank or the ATM operator may charge an additional fee for using an out-of-network machine. If your card balance is $50 and the withdrawal fee is $3, you net $47. Check your card's terms or call the issuer's customer service number (usually on the back of the card) to confirm whether ATM withdrawals are allowed and what the fees are.

Not all gift cards support ATM withdrawal. Store-branded cards and some network cards issued by retailers do not. Only prepaid cards issued by banks or major payment networks typically offer this feature.

What happens if you never use the card

Federal law requires gift cards to remain valid for at least five years from the date of purchase or the date the balance was last loaded. However, many states have extended this period or banned expiration altogether. Some states also prohibit inactivity fees — charges that reduce your balance if you do not use the card for a set period.

The rules vary significantly by state and by issuer. A gift card purchased in California may have different protections than one purchased in Texas. Check your state's attorney general website or the card issuer's terms to learn the expiration and fee rules that apply to your card. If you have a card you do not plan to use, selling it sooner rather than later protects you from the risk of expiration or fees.

Frequently Asked Questions

Can I transfer a gift card balance to someone else's bank account?

No. You can give the physical card or the code to another person, and they can spend it or sell it, but you cannot move the balance directly into their bank account. Some platforms allow you to email a digital gift card code, but that is still a gift card, not a bank transfer.

What if my gift card has a small balance left and I do not want to use it?

If the balance is under $5 or $10, most resale platforms will not accept it because their fees would exceed the card's value. Your best option is to spend it at the retailer, combine it with another payment method, or let it sit until expiration (which may take years depending on your state's law).

Do I have to pay taxes on money from selling a gift card?

No. Selling a gift card is not taxable income because you are selling an asset you already own, not earning new money. The IRS treats it the same way it treats selling a used item. Keep records of the sale in case you are audited, but you do not report it on your tax return.

Can I use a gift card to fund a PayPal or Venmo account?

PayPal and Venmo do not accept gift cards as a direct funding source. However, if your gift card is a network card (Visa or Mastercard), you can link it to PayPal as a payment method and use it to send money to others or pay for purchases — but the balance stays on the gift card and is not transferred to your PayPal account.

What if the gift card issuer goes out of business?

If a retailer closes, your gift card balance may be lost unless the retailer is acquired by another company that honors the cards. Federal law does not require retailers to honor gift cards if they cease operations. Some states have laws requiring retailers to pay out gift card balances in bankruptcy, but this varies. Check your state's law and the retailer's bankruptcy filings if this happens to you.