How To Transfer Gift Card To Bank Account (2026 Guide)

Last updated 04/03/2024 by

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Summary:

There are multiple ways to transfer money from a gift card to a bank account, and each method has its own advantages and drawbacks. By understanding your options, you’ll find it easier and more convenient to manage your gift card balances and access your funds.

Why transfer a gift card to a bank account?

Gift cards offer a convenient way to give and receive money, but having multiple cards can quickly become annoying. Maybe you have too many gift cards with small balances, or maybe you have some gift cards you can’t — or don’t want to — use. Fortunately, there’s a solution: transferring your gift card balances to your bank account!

Let’s be honest: most of us would prefer cash we can spend anywhere to a collection of gift cards with limited use. However, it’s worth noting that not all gift cards can be converted to cash, says Todd Stearn, founder and CEO of The Money Manual.

With that in mind, when possible, there are multiple ways you can transfer the funds from a gift card to your bank account.

Direct deposit

Direct deposit is one of the quickest and most convenient ways to transfer a gift card balance to your bank account. Not all gift cards support direct deposit, but if yours does, here are the steps you need to follow:

Contact the issuer of your gift card to determine if direct deposit is an option.
Provide your bank account number and routing number, then the gift card’s number, expiration date, and security code to initiate the transfer.
Wait a few business days for the balance to be transferred to your bank account.

Money transfer apps

Money transfer apps like PayPal, Venmo, and Cash App provide another convenient option for transferring balances from gift cards to bank accounts. To transfer gift card funds with a money transfer app, follow these steps:

Create an account with a money transfer app of your choice.
Link your gift card to your account.
Transfer the balance from your gift card to your bank account within the app.

Gift card exchange

If you prefer to convert the value of a gift card into cash without the help of a money transfer app, consider selling your gift card to a gift card exchange. Here are the steps you need to take:

Create an account with a gift card exchange website or app.
Enter the gift card information.
Once the gift card is sold, you should receive the cash value of the balance in your bank account.

It’s important to note that there will be a fee to turn your gift card into cash, and you’ll want to make sure you go with a reputable gift card exchange, says Stearn.

Reloadable prepaid debit card

Some reloadable prepaid debit cards allow you to load funds from a gift card. This option can give you more flexibility in using the funds. Simply follow these steps:

Create an account with a prepaid debit card company.
Link a gift card to your account.
Transfer the balance from your gift card to a prepaid debit card.

Loan advance fees and gift cards

Loan advance fee scams involve fraudsters promising access to loans or credit lines in exchange for an upfront fee. Increasingly, these scammers are requesting that fees be paid using gift cards—a red flag for a scam. Multiple scammers have impersonated SuperMoney employees to try to scam users into sending loan fees via gift cards. Note that SuperMoney will never contact you with a direct loan offer and that we will never require you to pay a fee to qualify or apply for a loan. Here’s what you need to know to protect yourself:

How the Scam Works: Scammers contact potential victims, often via phone, email, or social media, offering a guaranteed loan or financial assistance. However, they claim that an upfront fee is required to secure the loan, and instruct the victim to purchase gift cards from well-known retailers and provide the card numbers and PINs as payment.
Why Gift Cards: Scammers prefer gift cards because they are as good as cash, hard to trace, and can be redeemed quickly. Once the scammer has the gift card information, they can drain the funds, and the victim’s supposed loan never materializes.
Recognizing the Scam: Legitimate lenders never require upfront payment via gift cards for loans or credit approval. Any request for payment in the form of gift cards is a significant indicator of a scam. Be skeptical of unsolicited loan offers and never share gift card details with someone promising future financial rewards.
What to Do If You’re Targeted: If you encounter a loan advance fee scam, especially one involving gift cards, report it to the appropriate authorities. This can include the Federal Trade Commission (FTC), your local consumer protection office, or the Internet Crime Complaint Center (IC3). Do not engage further with the scammer.

Security and safety tips when transferring gift card balances

When considering transferring your gift card balances to your bank account, prioritizing security and safety is crucial. Here are essential tips to ensure a smooth and secure transaction:

Verify Platform Legitimacy: Before using any service to transfer gift card balances, conduct thorough research. Look for online reviews, Better Business Bureau ratings, and any consumer reports that indicate the platform’s reliability and trustworthiness.
Secure Transactions Only: Ensure that any platform you use for transferring gift card balances or selling your gift cards uses HTTPS on their website, indicating a secure connection. This security measure helps protect your personal and financial information from interception.
Understand the Fees: Be fully aware of any fees associated with the transfer or sale of your gift card. Some platforms may charge a percentage of the transaction, while others might have a flat fee. Understanding these fees will help you choose the most cost-effective option.
Read the Fine Print: Familiarize yourself with the terms and conditions of both the gift card and the transfer service. Some gift cards may have restrictions against certain types of transfers or may not be eligible for conversion to cash at all.
Use Reputable Exchanges: If selling your gift card, opt for well-known and reputable gift card exchange platforms. Check their payout options to ensure they align with your preferences, whether you’re looking for a direct deposit to your bank account, a check, or another form of payment.
Protect Your Information: Be cautious about sharing personal information. Legitimate services should not require sensitive information beyond what’s necessary to complete the transaction. Always double-check why each piece of information is needed and how it will be protected.
Beware of Scams: Stay alert to common scams involving gift cards, such as requests for payment in gift cards for services, unsolicited offers to buy your gift cards, or offers that seem too good to be true. Scammers often exploit these transactions to launder money or steal funds.
Consider the Alternatives: If you’re unsure about the safety of a transaction or the legitimacy of a platform, consider alternative methods for using your gift card, such as purchasing items for resale or regifting to someone who can use it.
Report Suspicious Activities: If you encounter any fraudulent activities or scams, report them to the appropriate authorities, such as the Federal Trade Commission (FTC) or your local consumer protection agency. Your report can help prevent others from falling victim to similar scams.

By adhering to these security and safety tips, you can better navigate the process of transferring gift card balances to your bank account while minimizing risks and protecting your financial well-being.

Key takeaways

Direct deposit, when available, offers a quick and convenient way to transfer gift card funds to your bank account.
Money transfer apps offer an alternative method for transferring gift card balances to bank accounts.
If you don’t use money transfer apps, selling your gift card to a reputable gift card exchange can be a viable alternative.
Compare fees and exchange rates to ensure you’re getting the best value when transferring money from a gift card to your bank account.

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