How to Transfer Money From a Gift Card to Bank Account?

The core question is: How do you transfer money from a gift card to a bank account? The most direct method involves selling your gift card to a reputable online exchange or using a service that converts gift card balances into cash, which can then be deposited into your bank. Let’s explore these options in detail, along with a few less direct, but still viable, alternatives.

Unlocking the Value of Your Gift Cards

Gift cards. We’ve all got them. They’re often the go-to present when someone is unsure of what you truly want or need. But what happens when you receive a gift card for a store you rarely visit, or simply prefer cash? Fortunately, there are several ways to transform that plastic rectangle into cold, hard cash residing comfortably in your bank account. Let’s dive into the strategies.

Online Gift Card Exchange Platforms

This is often the quickest and most efficient way to transfer your gift card value. Several online platforms specialize in buying unwanted gift cards. Popular options include Raise, CardCash, GiftCash, and Cardpool. Here’s how it typically works:

1. Create an Account: Register on your chosen platform.
2. Enter Gift Card Details: Input the gift card number, PIN (if applicable), and the balance on the card.
3. Receive an Offer: The platform will assess the gift card and present you with an offer, which is usually less than the face value of the card. The percentage you receive depends on the card’s popularity and the platform’s current demand. Expect to receive anywhere from 70% to 90% of the card’s value.
4. Accept the Offer: If you’re happy with the offer, accept it.
5. Provide Payment Information: Choose your preferred payment method. Most platforms offer options like direct deposit, PayPal, or check. For direct deposit, you’ll need to provide your bank account and routing number.
6. Transfer Funds: The platform will process the transaction, and the funds will be deposited into your bank account within a few business days.

Important Considerations:

• Reputation: Research the platform thoroughly before using it. Check reviews and ensure it’s a reputable and secure service. Look for SSL encryption and positive user feedback.
• Fees: Be aware of any fees associated with selling your gift card. Some platforms charge a commission or processing fee.
• Gift Card Type: Not all gift cards are accepted. Check the platform’s list of accepted retailers before proceeding.

Selling Gift Cards Locally

While online platforms offer convenience, selling your gift card locally can sometimes yield a better return, though it requires more effort. Here are a few options:

• Classified Ads: Websites like Craigslist or Facebook Marketplace can be used to list your gift card for sale. Be sure to clearly state the card’s value and your asking price. Meeting in a public, well-lit place is crucial for safety when conducting transactions with strangers.
• Local Pawn Shops: Some pawn shops may buy gift cards, but expect a significantly lower offer than online platforms.
• Friends and Family: Consider offering the gift card to friends or family who might be interested in using it. This can be a win-win situation, as they get a discount, and you get cash.

Important Considerations:

• Safety: Always prioritize safety when meeting with strangers. Choose a public location and bring a friend if possible.
• Negotiation: Be prepared to negotiate the price.
• Verification: If possible, allow the buyer to verify the gift card balance before completing the transaction.

Using the Gift Card for Purchases and Selling the Item

This is a more indirect approach, but sometimes the most lucrative. Use the gift card to purchase items from the store and then sell those items online or locally.

1. Identify High-Demand Items: Research which items from the store are currently in demand and sell well on platforms like eBay or Amazon. Electronics, popular clothing brands, and collectibles often fetch good prices.
2. Purchase the Item: Use your gift card to purchase the chosen item.
3. List the Item for Sale: Take clear photos and write a detailed description of the item. Set a competitive price based on market research.
4. Ship the Item: Once the item sells, carefully package it and ship it to the buyer.
5. Receive Payment: Once the buyer receives the item and confirms its condition, you’ll receive payment through the online platform, which can then be transferred to your bank account.

Important Considerations:

• Time and Effort: This method requires more time and effort than selling the gift card directly.
• Market Research: Thorough market research is crucial to ensure you can sell the item for a profit.
• Fees: Be aware of any fees associated with selling items online, such as listing fees and shipping costs.

Using Gift Card Exchange Kiosks

Some shopping malls and retail locations have gift card exchange kiosks. These kiosks offer instant cash for gift cards. While convenient, they typically offer the lowest payout compared to other methods. The process is simple:

1. Visit the Kiosk: Locate a gift card exchange kiosk.
2. Scan the Gift Card: The kiosk will scan the gift card and display an offer.
3. Accept or Decline: If you’re happy with the offer, accept it.
4. Receive Cash: The kiosk will dispense cash for the gift card.

Important Considerations:

• Low Payout: Kiosks typically offer the lowest payout compared to other methods.
• Convenience: The main advantage is the speed and convenience.

FAQs: Gift Card to Bank Account Transfers

Here are some frequently asked questions about transferring money from a gift card to a bank account:

1. Is it legal to sell gift cards?

Yes, it is generally legal to sell gift cards. Gift cards are considered property, and you have the right to sell or transfer them to another person. However, it is important to ensure that you are selling the gift card through a reputable platform or to a trustworthy individual to avoid scams.

2. What types of gift cards can be converted to cash?

Most major retail and restaurant gift cards can be converted to cash. However, some platforms may not accept certain types of gift cards, such as prepaid debit cards or store-specific cards from smaller retailers. Always check the platform’s list of accepted retailers before attempting to sell your gift card.

3. How much money will I get for my gift card?

The amount of money you receive for your gift card will depend on several factors, including the card’s popularity, the platform you use, and the current market demand. Expect to receive anywhere from 70% to 90% of the card’s face value.

4. What are the fees associated with selling gift cards online?

Fees vary depending on the platform. Some platforms charge a commission or processing fee, while others may offer a lower payout to cover their costs. Be sure to compare fees across different platforms before choosing one.

5. How long does it take to receive the money?

The time it takes to receive the money will depend on the payment method you choose. Direct deposit typically takes 1-3 business days, while PayPal transfers are usually instant. Checks may take several days to arrive by mail.

6. Is it safe to sell gift cards online?

Selling gift cards online can be safe if you use a reputable platform and take precautions to protect your personal information. Look for platforms with SSL encryption and positive user reviews. Avoid sharing your gift card number and PIN with untrustworthy individuals.

7. What if my gift card has a small balance?

Some platforms may have a minimum balance requirement for gift card sales. If your gift card has a small balance, you can try combining it with another gift card or using it to make a purchase at the store.

8. Can I transfer a gift card balance to a prepaid debit card?

While not a direct transfer, some platforms may allow you to receive payment via a prepaid debit card. However, this option may come with additional fees.

9. What should I do if my gift card is lost or stolen?

If your gift card is lost or stolen, contact the retailer immediately to report the loss. Some retailers may be able to cancel the card and issue a replacement, but this is not always guaranteed.

10. Can I donate my gift card to charity?

Yes, many charities accept gift card donations. This can be a great way to support a cause you care about while getting rid of an unwanted gift card. Check with your favorite charity to see if they accept gift card donations.

11. Are there any tax implications for selling gift cards?

The sale of a gift card is generally not considered a taxable event, as you are simply converting one form of property (the gift card) into another (cash). However, if you sell the item purchased with the gift card for more than you originally spent, you may be subject to capital gains tax on the profit. Consult with a tax professional for specific advice.

12. What are the alternatives to converting gift cards to cash?

Besides converting gift cards to cash, you could also re-gift them, exchange them with friends or family, or use them to purchase items you need or want. Consider all options before deciding to sell your gift card.

By carefully considering these options and frequently asked questions, you can confidently navigate the process of converting your unwanted gift cards into valuable cash that lands directly in your bank account. Remember to prioritize safety and research your options to ensure a smooth and secure transaction.