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Can You Get Cashback on a Walmart Gift Card? A Deep Dive

No, you typically cannot get cashback directly on a Walmart gift card. Think of it like this: a gift card is essentially prepaid store credit, not cash. Trying to convert it directly back into cash defeats its purpose. However, there are a few exceptions and alternative strategies we’ll explore to potentially access the value locked within that plastic rectangle.

Understanding the Nature of Gift Cards

Gift cards, those ubiquitous tokens of generosity and convenience, are big business. But their simplicity can be deceptive. They operate within a specific framework governed by retailers and, to some extent, state laws. Let’s unravel the intricacies:

Gift Cards as Prepaid Instruments

Gift cards are essentially prepaid instruments. Someone has already paid Walmart for the value stored on the card. Walmart sees it as a future liability – an obligation to provide goods or services up to the card’s value. That’s why retailers generally resist giving cashback; it disrupts this carefully balanced system. Allowing immediate cash withdrawal would treat gift cards more like debit cards, which they are not.

Why No Cashback is the Norm

The primary reason for the no-cashback policy stems from anti-money laundering regulations, accounting practices, and simple profit protection. Imagine the potential for abuse if anyone could buy hundreds of gift cards with cash and then immediately cash them out. This would create a perfect vehicle for laundering illicit funds.

Furthermore, retailers want you to spend the money in their stores. Cashback incentivizes you to take the money elsewhere, undermining the whole point of offering gift cards in the first place.

State Laws and Exceptions

While federal laws don’t mandate cashback on gift cards, some states have consumer protection laws that address specific situations. For example, some states require retailers to offer cashback on gift cards with balances below a certain small amount (usually $5 or less). These “cash-out” laws are designed to prevent consumers from being stuck with small, unusable balances. Check your state’s regulations to see if such a law applies to Walmart. Keep in mind that even if your state has such a law, Walmart may not always comply readily and you may need to escalate the issue.

Alternative Strategies: Beyond Direct Cashback

So, you can’t usually get straight-up cash back. What are your options?

Reselling Your Walmart Gift Card

The most common and often most effective method is to resell your gift card on the secondary market. Numerous websites and apps specialize in buying and selling unwanted gift cards. Sites like Raise, CardCash, and GiftCardGranny are popular options.

Here’s the catch: you won’t get the full face value of the card. Resellers need to make a profit, so they’ll typically offer you a percentage of the card’s value. The exact percentage depends on factors like the card’s popularity, the balance, and the reseller’s current inventory.

Trading for Another Gift Card

Another avenue is to trade your Walmart gift card for a different gift card. Some websites and physical locations facilitate these exchanges. This is a good option if you don’t need cash but would prefer a gift card for a different store or service. Think of it as converting your Walmart credit into credit you can actually use.

Gifting or Donating the Card

Consider gifting the card to someone who shops at Walmart or donating it to a charity. Many charities accept gift card donations, which they can then use to purchase needed supplies or auction off for fundraising. This is a win-win: you get rid of the card, and someone else benefits.

Using the Gift Card Strategically at Walmart

Sometimes, the best approach is simply to use the gift card strategically at Walmart. Plan your purchases to maximize its value. Stock up on household essentials, groceries, or items you know you’ll need. This way, you’re effectively converting the card into tangible goods that have real value for you.

Frequently Asked Questions (FAQs)

Here are 12 frequently asked questions about getting cashback on Walmart gift cards:

Can I get cash back on a Walmart gift card if the balance is less than $5? It depends on your state’s laws. Some states have laws requiring retailers to offer cashback on small gift card balances. Check your local regulations. Even if a state law exists, Walmart may not automatically offer this and you may have to request it specifically, potentially with knowledge of the law itself.
What are the best websites to resell my Walmart gift card? Popular choices include Raise, CardCash, GiftCardGranny, and ClipKard. Compare offers from multiple sites to get the best deal.
How much can I expect to get when reselling my Walmart gift card? Typically, you’ll receive anywhere from 70% to 90% of the card’s face value. The exact amount depends on the reseller and the card’s demand.
Are there any fees associated with reselling my Walmart gift card? Some websites charge fees for listing or selling your gift card. Be sure to factor these fees into your calculations.
Can I trade my Walmart gift card for a gift card to another store? Yes, some websites and physical locations offer gift card exchange services.
What are the risks of buying or selling gift cards online? Fraud is a risk. Use reputable websites with secure payment processing and buyer/seller protection policies. Always verify the gift card balance before buying or selling.
Does Walmart ever offer promotions that involve getting cash back on gift card purchases? Rarely, but it’s worth checking Walmart’s website or local ads for any special promotions. Such promotions are typically short-lived and tied to specific purchase requirements.
Can I use a Walmart gift card to buy another gift card? Generally, no. Walmart’s policy typically prohibits using gift cards to purchase other gift cards.
What happens if I lose my Walmart gift card? Treat it like cash. Lost or stolen gift cards are typically not replaceable unless you have the original purchase receipt and can prove the card’s value.
Can I use my Walmart gift card online at Walmart.com? Yes, you can use your Walmart gift card for online purchases at Walmart.com.
Is there an expiration date on Walmart gift cards? No, Walmart gift cards do not expire and do not have any dormancy fees.
If I return an item purchased with a Walmart gift card, will I get cash back? No, you will typically receive the refund on another Walmart gift card or store credit. Cash back is generally not offered for returns of items purchased with gift cards.

Conclusion: Navigating the Gift Card Landscape

While getting direct cashback on a Walmart gift card is usually impossible, understanding the rules and exploring alternative strategies empowers you to access the value locked within. Reselling, trading, gifting, strategic spending – these are all viable options. By being informed and resourceful, you can make the most of your Walmart gift card, whether you need cash or just want to put it to good use.