How to Transfer Money from Gift Card to Bank Account?

Gift cards have become indispensable in modern commerce, offering convenience and flexibility. However, users often encounter challenges when trying to convert them into cash. Many wonder, ‘How to Transfer Money from Gift Card to Bank Account?’ 

Gift cards are versatile financial instruments that provide online and in-store shopping convenience. However, the journey from receiving a gift card to unlocking its full potential necessitates a comprehensive explanation. 

Moreover, Users commonly need clarification about the types of gift cards, their values, expiration dates, and the optimal methods for transferring funds to a bank account or converting them into cash.

The article helps users by explaining how to transfer gift card funds to a bank account. It covers various convolutions associated with gift cards, such as: 

• The basics of gift cards, expiration dates, their value, and potential fees. 
• Various categories of gift cards, including e-gift, general-purpose, custom, and virtual cards. 
• Comprehensive guide on transferring gift card funds to a bank account. 
• Strategies for converting gift cards into cash, including selling them online, using gift card exchange services, employing selling apps, etc. 

Moreover, the article explores practical strategies for converting gift cards into cash, ensuring that readers possess the necessary tools to optimize the value of their gift card assets. 

Sounds Intriguing? Let’s get straight into it. 

What is a Gift Card? 

Before delving into the intricacies of transferring funds from a gift card to a bank account, it’s crucial to grasp how gift cards work.  

A gift card is a prepaid debit card that allows users to purchase at various retail outlets, online merchants, or even restaurants.  

A gift card is a convenient option for gift-giving, mainly when the recipient’s preferences are uncertain. Additionally, it can be an effective means of economizing on shopping expenses.  

The popularity of gift cards as a gift choice has been steadily increasing, primarily because they enable recipients to select the present according to their choice. 

The card’s value is determined by the amount loaded onto its balance, and it’s essential to be aware that gift cards may be subject to fees and expiration dates. 

There are two primary categories of gift cards: 

• Closed-loop cards are typically restricted to specific merchants, such as retail outlets, grocery stores, or gas stations. 
• Open-loop cards: In contrast, gift cards not tied to a specific merchant are open-loop cards. These versatile cards can be used at any establishment that accepts the designated payment method. 

It’s worth noting that while some gift cards offer the option of reloading, this feature is not universal and depends on the card type and the policies of the respective merchant. 

Types of Gift Cards 

Various types of gift cards are readily available in today’s market, catering to diverse preferences and needs.  

Let’s explore some of the most popular categories: 

1. Store Gift Cards 

These cards are exclusive to specific retail stores or chains and offer reloadable options for multiple uses.  

They are an excellent choice for those seeking flexibility in shopping across various locations. 

2. Restaurant Gift Cards 

These cards, tailored for specific restaurants or restaurant chains, can be quickly loaded and are perfect for individuals who enjoy experimenting with new culinary experiences. 

3. Cinema Gift Cards  

Designed for purchasing movie tickets or rentals at theatres or theatre chains, these cards are ideal for cinema enthusiasts who relish the considerable screen experience. 

4. E-Gift Cards 

Functional for online shopping at specific retailers, these cards cater to those who prefer shopping from the comfort of their homes. 

5. Travel Gift Cards 

 Use these cards to book travel accommodations or airfare, making them perfect for individuals eager to explore new destinations. Gas gift cards are particularly beneficial for frequent commuters or travelers. 

6. Gas Gift Cards 

These cards provide benefits for purchasing gas at specific stations or chains, which is advantageous for those who require fuel for their vehicles. 

7. General Purpose Gift Cards 

Accepted at any location that takes major credit cards, these non-reloadable cards offer flexibility for use anywhere, appealing to individuals who want universal acceptance. 

8. Custom Gift Cards 

Tailored for specific recipients or occasions, these cards can be used for any purpose the issuer determines. They are ideal for those seeking a truly unique and personalized gift. 

9. Virtual Gift Cards 

Purchased online and delivered via email, these cards are perfect for online purchases at the retailer where they were acquired. They suit individuals who prefer the ease and convenience of online shopping. 

How Do You Transfer Money from a Gift Card to a Bank Account? 

If you find unused gift cards or want to convert gift card funds into your bank account, several methods make this possible.

Here are various ways to transfer money from a gift card to your bank account: 

1. Transfer Money Via PayPal Wallet from a Gift Card to Bank Account 

• Log in to your PayPal account. 
• Click on ‘Wallet’ at the top of the page. 
• Select ‘Link a card or bank account.’ 
• Enter your Gift Card details (number, expiry date, security code). 
• Click ‘Link Card.’ 
• After linking the card, choose ‘Withdraw’ and ‘Transfer to a bank account.’ 
• Enter the transfer amount and click ‘Submit.’ 

2. Via Cash App 

• Open the Cash App and tap on the ‘+’ sign. 
• Choose ‘Add Bank’ and enter your bank information. 
• Select’ Cash Out’ on the gift card ‘Balance’ tab. 
• Enter the amount to transfer from your Gift Card to your bank account. 

3. Via Venmo 

• Sign up for a Venmo account on their website. 
• Log in and click on the “Payments” tab. 
• Select “Add Payment Method” and choose “Gift Card.” 
• Enter the transfer amount, gift card number, and PIN. 
• Click “Confirm” to initiate the transfer. 

4. Via Square 

• Log in to your Square account. 
• Click on the “Cash” tab. 
• Select “Withdraw” and “Gift Card” as the withdrawal method. 
• Enter the withdrawal amount from your gift card. 
• Click “Withdraw,” the funds will be in your bank account within 1-2 business days. 

5. Via MoneyGram: 

• Create an account on the MoneyGram website. 
• Enter the amount to transfer from your gift card. 
• Choose ‘gift card’ as the payment method. 
• Provide the recipient’s bank account information. 
• Send the money, and the recipient will receive it in their account within a few days. 

These methods offer various options to convert gift card balances into usable funds in your bank account. Be sure to follow the specific steps outlined by each platform to ensure a smooth and secure transfer process. 

Benefits of transferring a Gift Card to a Bank Account

Transferring a gift card to a bank account allows you to convert card balances into cash for flexible spending. Let’s discuss the benefits in detail.

1. Flexibility and Financial Freedom 

Transferring gift card funds to a bank account provides users with increased financial flexibility.  

Instead of being limited to making purchases at specific merchants, the converted funds can be used for a wide range of expenses, offering greater freedom in financial decision-making. 

2. Avoiding Expiry and Fees 

Gift cards often come with expiration dates and potential fees, mainly if unused for an extended period.  

By transferring the funds to a bank account, users can safeguard their money from expiration and fees, ensuring that the total value of the gift card is preserved. 

3. Convenient Consolidation 

Consolidating gift card balances into a bank account simplifies financial management.  

Users can centralize their funds in one account rather than keep track of multiple gift cards with varying amounts, making monitoring and utilizing their available resources more accessible. 

4. Ease of Use for Everyday Expenses 

Bank accounts offer a seamless way to manage daily expenses, from groceries to utility bills.  

By transferring gift card funds, users can seamlessly integrate them into their regular spending habits, enhancing the practicality and convenience of the gift card value. 

5. Utilizing Gift Cards with Limited Merchant Options  

For closed-loop gift cards restricted to specific merchants, transferring funds to a bank account opens up possibilities for spending at a broader range of establishments.  

This is particularly advantageous for individuals who may not frequent the designated merchants associated with the original gift card. 

6. Avoiding Gift Card Conversion Challenges 

Converting gift cards into cash can involve various platforms and potential fees.  

Transferring funds to a bank account simplifies the conversion, providing a straightforward method to access the monetary value of the gift card without navigating intricate exchange processes. 

7. Preventing Gift Card Loss or Damage 

Physical gift cards can be susceptible to loss or damage. By transferring the funds to a bank account, users mitigate the risk of losing the tangible card or rendering it unusable due to wear and tear.  

The digital nature of bank transactions adds an extra layer of security. 

8. Capitalizing on Bank Account Features  

Bank accounts often have additional features like interest accrual, cashback rewards, and online banking tools.  

Transferring gift card funds to a bank account allows users to leverage these features, potentially increasing the overall value of their monetary assets. 

Remember to exercise caution and follow the specific instructions provided by each platform when transferring gift card funds to a bank account to ensure a secure and successful transaction. 

How Do You Convert Your Gift Card to Cash? 

Converting a gift card into cash can be challenging but feasible.

If you possess a Visa gift card and want to transform it into money, several options are available. 

1. Sell Your Gift Cards 

You can sell your gift cards through exchange services, which typically offer higher rates than the card’s face value. 

Alternatively, consider exchanging your Visa gift card for a different type that facilitates a more straightforward conversion process. 

2. Utilize a website 

Various websites allow the users to write to sell their gift cards to the buyers. They also enable the users to list their gift cards on their website so potential buyers can contact them. 

3. Use a Selling App 

Apps like Cardpool allow you to sell Visa gift cards by setting a price and receiving payment via PayPal once the card is purchased. 

4. Direct Sale to Another Person 

Find potential buyers among family, friends, or online platforms like Craigslist or eBay. 

Exercise caution when dealing with buyers to avoid potential gift card scams. 

5. Pay Bills with Gift Cards 

Use gift cards to pay bills, including online subscriptions and memberships, to avoid late fees or interest charges. 

6. Gift Exchange Kiosk 

Various retailers, such as Target, Walmart, Walgreens, Kroger, and CVS, have gift exchange kiosks where you can convert unwanted gift cards into cash. 

7. Target 

Locate a gift exchange kiosk near the service desk, insert your card, and follow the prompts for cash or Target gift cards. 

8. Walmart 

You can use a Walmart gift card exchange kiosk by inserting your card, specifying the desired cash amount, and collecting your cash and receipt. 

9. Walgreens 

At participating Walgreens locations, insert your card into the kiosk, choose the cash amount, and collect your cash. 

10. Kroger 

Select the “Gift Cards” option on the kiosk, follow on-screen instructions, receive a cash value quote, and obtain cash immediately upon acceptance. 

11. CVS 

Find a gift exchange kiosk near the customer service counter, insert your card, choose your payment method (cash or CVS store gift card), and collect your money. 

12. Buy a Money Order: 

Purchase a money order with your gift card at post offices, grocery stores, or banks, paying with cash or a debit card. 

13. Buy Other Merchant’s Gift Cards: 

With your unused gift card, you can purchase gift cards from other merchants and return the unused portion for cash. 

14. Buy Items to Resell 

Utilize your gift card to purchase items for resale, selecting those with a lower selling price than the gift card’s value. This method requires effort but can yield additional income. 

Bottom Line 

Gift cards have become essential tools in modern shopping, offering convenience for both gift givers and receivers. They come in various types, from store-specific to virtual options. 

Finding ways to transfer gift card funds to a bank account is beneficial for those wanting more control over their finances. This helps avoid expiration dates and fees, simplifies transactions, and allows everyday use. 

This article explores strategies for converting gift cards into cash, both online and in-person. It provides valuable tips for enhancing gift-giving experiences and optimizing the use of standard prepaid cards. 

Whether giving or receiving a gift or converting gift cards into cash, this guide offers essential information. As the shopping landscape evolves, mastering the use of gift cards becomes increasingly crucial for maximizing the benefits of every purchase.