Are you holding onto a gift card with unused funds and wish you could transfer that money to your bank account instead?
You’re not alone!
Many people face this challenge, and finding the right solution can be tricky.
In this blog post, we’ll learn the differences between Visa and store-issued gift cards and explore strategies for transferring money from these cards to your bank account.
We’ll cover some of the most popular options such as PayPal, Venmo, gift card-selling apps, and more.
So let’s dive in and discover how to turn those gift card balances into cash you can use as you please!
How to Transfer Money from Gift Cards to Bank Accounts
Knowing the characteristics of each type of gift card is helpful when looking for ways to transfer their balances to your bank account.
The methods available for transferring money may differ, with some options being more accessible for Visa gift cards, while others are tailored for store-issued gift cards.
Visa Gift Cards vs Store-Issued Gift Cards
Visa gift cards
Visa gift cards function like prepaid debit cards, offering the advantage of being accepted at any location that accepts Visa.
These cards provide the recipient with the flexibility to choose where they want to spend the money.
However, they often come with activation fees, and depending on the issuer, they may also have additional fees or expiration dates.
Store-issued gift cards
Store-issued gift cards, on the other hand, are exclusive to a specific retailer or a group of affiliated retailers.
These cards allow the recipient to shop within a particular store or brand, which can be great for someone who loves that specific retailer.
Store-issued gift cards usually have no activation fees and may not have expiration dates, but they lack the flexibility of being used outside of the designated stores.
Factors Affecting the Transfer Process
Several factors can affect your ability to transfer money from a gift card to your bank account. They are:
- Type of gift card: As mentioned earlier, Visa gift cards offer more flexibility and are generally easier to transfer to a bank account compared to store-issued gift cards.
- Issuer’s policies: Some gift card issuers may have strict policies or limitations on transferring balances to bank accounts, which can make the process more challenging.
- Available services and fees: The methods available for transferring gift card balances, such as PayPal or Venmo, may charge fees for their services, which can reduce the amount you ultimately receive in your bank account.
- Expiration dates: Some gift cards have expiration dates, which means you need to transfer the balance before the card expires, or you risk losing the funds.
- Regional restrictions: In some cases, gift card issuers may impose restrictions based on the country or region, limiting the available methods for transferring balances to bank accounts.
- Verification requirements: Some money transfer services may require additional verification steps, such as linking a bank account or providing identification documents, to transfer funds from gift cards to bank accounts. This can add time and complexity to the process.
Knowing which methods are available for your specific gift card can help you successfully transfer the balance to your bank account.
We are going to talk about the available options next.
Methods to Transfer Money from Visa Gift Cards to Bank Accounts
There are several ways to transfer money from Visa gift cards to your bank account. Here are some popular methods that can help you convert your Visa gift card balance into cash.
Using PayPal to Transfer Money from Visa Gift Cards
PayPal offers a convenient way to transfer money from Visa gift cards to your bank account.
Follow these step-by-step instructions to complete the process:
- Sign in to your PayPal account or create one if you haven’t already.
- Link your bank account to your PayPal account if you haven’t done so. This allows for smooth transfers between your PayPal account and bank account.
- Click on the “Pay & Get Paid” tab at the top of the PayPal homepage then select “Banks & Cards”.
- Under “Cards” click on the “Link a new card” button.
- Enter your Visa gift card details, such as the card number, expiration date, and security code, then click “Link Card.”
- Once your Visa gift card is linked to your PayPal account, click on the “Transfer Money” option.
- Select “Transfer to your Bank” and choose the bank account you want to transfer the funds to.
- Enter the amount you want to transfer from your Visa gift card to your bank account, then click “Continue.”
- Review the details of the transfer, and click “Submit” to initiate the process.
Please note that PayPal may charge a fee for this service, so review the terms and conditions before proceeding. The transfer may take a few minutes to a few hours, depending on PayPal’s processing time.
Transferring Money from Visa Gift Cards through Venmo
Venmo is a popular money transfer app that you can use to transfer money from your Visa gift card to your bank account.
Follow these step-by-step instructions to complete the process:
- Download and install the Venmo app on your smartphone if you haven’t already, and create an account.
- Link your bank account to your Venmo account if you haven’t done so. This will ensure seamless transfers between your Venmo account and bank account.
- Tap the menu icon (☰) in the upper left corner of the app to access the Venmo menu.
- Select “Settings” and then tap “Payment Methods.”
- Tap “Add a bank or card” and choose “Card.”
- Enter your Visa gift card details, such as the card number, expiration date, and security code, then tap “Add.”
- Once your Visa gift card is added as a payment method, send the balance on the gift card to a trusted friend or family member on Venmo.
- Have a friend or family member transfer the money back to your Venmo account.
- To transfer the balance to your linked bank account, tap the menu icon (☰) and select “Transfer to Bank” or “Transfer Money.”
- Enter the amount you want to transfer from your Venmo account to your bank account and tap “Next.”
- Review the details of the transfer and tap “Transfer Now” or “Instant Transfer” to initiate the process. Note that instant transfers may charge additional fees.
This method offers a convenient option to convert your gift card balance into cash, allowing you to use the funds as you need.
Utilizing MoneyGram for Visa Gift Card Transfers
MoneyGram is a global money transfer service that allows you to send funds from a Visa gift card to your bank account.
Follow these step-by-step instructions to complete the process:
- Locate the nearest MoneyGram agent by visiting the MoneyGram website or using their mobile app.
- Visit the MoneyGram agent location with your Visa gift card, identification, and bank account details.
- Fill out the necessary MoneyGram form, providing your bank account information as the recipient.
- Provide the Visa gift card details, such as the card number, expiration date, and security code, as the payment method.
- Pay any applicable fees for the money transfer service.
- The MoneyGram agent will process the transaction, which may take a few minutes to complete.
- Keep the receipt and the transaction reference number, as it may be required for future inquiries or tracking the transfer status.
Alternatively, you can use the MoneyGram online platform to initiate the transaction by following a similar process:
- Sign up for a MoneyGram account or log in to your existing account.
- Select “Bank Deposit” as the receiving method.
- Enter your bank account details and the amount you want to transfer from the Visa gift card.
- Choose the Visa gift card as the payment method and enter the required card details.
- Review the transaction details and pay any applicable fees.
- Confirm the transfer and keep a record of the transaction reference number for future reference or tracking.
Keep in mind that MoneyGram may charge a fee for this service which are generally higher than PayPal’s.
For a direct transfer from a sender’s online bank account, debit, or credit card to a recipient’s debit card, MoneyGram charges a flat fee of $1.99 regardless of the amount being sent.
However, if the recipient will pick up cash in person at a MoneyGram location, the fee increases to $5.99 if coming from a bank account and $13.99 if coming from a debit or credit card.
Transferring Money from Visa Gift Cards to Cash App
Cash App is a popular money transfer platform that can also help you transfer money from a Visa gift card to your bank account.
To use Cash App for this purpose, follow these steps:
- Download and install Cash App if you haven’t already and create an account. Check out our article if you are looking for the perfect Cash App name.
- Link your bank account to your Cash App account.
- Add your Visa gift card as a payment method. To do this, tap on the “Banking” tab, and then tap “Add Credit Card.”
- Enter your Visa gift card details, such as the card number, expiration date, and security code.
- Once the gift card is added, you can either use the Cash App balance directly for payments or transfer the money to your linked bank account.
Transferring Money from Visa Gift Cards with Square
Square is a payment processing service that can help you transfer money from a Visa gift card to your bank account.
Here’s a step-by-step guide on how to use Square for this purpose:
- Sign up for a Square account on their website or download the Square Point of Sale app on your smartphone and create an account.
- Link your bank account to your Square account by providing your bank account details. This ensures a seamless transfer of funds between Square and your bank.
- Order a Square Reader for swiping cards or use the Square Point of Sale app with a compatible device for manual card entry.
- Once you have the Square Reader or app ready, process the Visa gift card balance as a payment. To do this, swipe the gift card using the reader or manually enter the card details in the app.
- After the transaction is complete, the funds will be transferred to your Square account.
- To transfer the balance from your Square account to your linked bank account, log in to your Square Dashboard, and click “Transfer.”
- Enter the amount you want to transfer and confirm the transaction.
Prepaid2Cash as a Visa Gift Card Transfer Option
Prepaid2Cash is a mobile app designed to help you access your prepaid card’s funds. You can deposit your funds directly into your bank account, debit card, or Bitcoin wallet.
Follow these step-by-step instructions to use Prepaid2Cash for transferring money from your Visa gift card:
- Download the Prepaid2Cash app on your smartphone from the App Store or Google Play Store.
- Create an account by providing your email address and creating a password. You may also need to provide some personal information for identity verification.
- Link your bank account to your Prepaid2Cash account by providing your bank account details. This is necessary for transferring funds to your bank account.
- In the app, select the “New Transaction” button and choose the “Bank Transfer” option.
- Scan the Visa gift card using your smartphone’s camera or manually enter the card details, such as the card number, expiration date, and security code.
- Enter the amount you want to transfer from the Visa gift card to your bank account.
- Review the transaction details and confirm the transfer. Keep in mind that Prepaid2Cash may charge a small fee for this service.
- The funds will be transferred to your linked bank account, usually within 1-3 business days, depending on the processing time.
The fee amount is based on how fast you would like your funds delivered, see below for our current delivery options and their respective price:
- Next Business Day – 7.5% processing fee + $1.50 for delivery.
- 4-5 Business Days – 5.0% processing fee + $1.50 for delivery.
You can get up to 92% of the gift card’s value, though the exchange rate varies by brand. Once they have verified the balance on your card, they will present you with an offer.
Once the offer has been made, there is no commitment to accept, and you can cancel your transaction on the transaction review screen in the mobile app.
Methods to Transfer Money from Store-Issued Gift Cards to Bank Accounts
Transferring money from store-issued gift cards to your bank account can be a bit trickier than Visa gift cards, but there are still several methods available to help you turn those gift cards into cash.
Selling Your Store-Issued Gift Card
Websites and Apps for Selling Gift Cards
There are numerous websites and mobile apps where you can sell your store-issued gift cards for cash.
Platforms like Raise, Gift Cash and Prepaid2Cash allow you to list your gift card for sale at a discounted price.
Once your gift card is sold, you can receive your payment via direct deposit or other available payout options.
You can find more online gift card exchanges here.
Selling Gift Cards Directly to Another Person
Another way to sell your store-issued gift card is by finding a buyer directly.
You can use online marketplaces like eBay, Facebook Marketplace, or Craigslist to list your gift card for sale.
Be sure to follow each platform’s guidelines and take necessary precautions when conducting transactions with strangers.
Using a Gift Exchange Kiosk for Store-Issued Gift Cards
Gift card exchange kiosks, such as Coinstar Exchange or Cardpool kiosks, allow you to insert your store-issued gift card and receive cash or a voucher in return.
These kiosks can often be found at retailers like Walmart, Target, or grocery stores.
Keep in mind that the kiosk may charge a fee for this service, and the cash offer may be less than the full value of the gift card.
Here’s a blog post to help you find the closest gift card exchange kiosk near you.
Purchasing Money Orders with Store-Issued Gift Cards
Some stores and post offices allow you to purchase money orders using store-issued gift cards.
You can then deposit the money order into your bank account.
This method may not be available at all locations, and there may be fees associated with purchasing money orders, so check with the store or post office for details.
Buying Other Merchants’ Gift Cards with Store-Issued Gift Cards
In some cases, you can use your store-issued gift card to purchase another merchant’s gift card that can be more easily converted into cash.
For example, you could use a store-issued gift card to buy a Visa gift card, which can then be transferred to your bank account using one of the methods mentioned earlier.
Buying Items to Resell with Store-Issued Gift Cards
Another option for converting your store-issued gift card balance into cash is to purchase items with the gift card and then resell those items for cash.
Look for items with a high resale value and low depreciation rate, such as electronics, collectibles, or brand-name clothing. You can then sell these items on platforms like eBay, Amazon, or Poshmark.
Keep in mind that this method may require some time and effort, and you may not recover the full value of the gift card in the resale process.
By exploring these methods, you can find a suitable way to transfer money from store-issued gift cards to your bank account or convert the gift card balance into cash.
Each method comes with its pros and cons, so consider your options carefully and choose the one that works best for your situation.
Frequently Asked Questions
Here are several common questions related to transferring money from gift cards to your bank account.
Can you transfer funds from a gift card to a bank account?
Yes, you can transfer funds from certain gift cards to a bank account.
The methods available for transferring funds vary depending on whether you have a Visa gift card or a store-issued gift card.
Some common methods include using PayPal, Venmo, or selling the gift card on a website or app.
How do I convert a gift card to cash?
To convert a gift card to cash, you can sell it on a website or app, find a buyer directly through online marketplaces, use a gift exchange kiosk, or purchase items with the gift card and resell them for cash.
What app can I use to transfer a gift card to a bank account?
You can use apps like PayPal, Venmo, or Prepaid2Cash to transfer money from certain gift cards to your bank account.
Keep in mind that fees and requirements may vary between these apps.
Can you transfer the balance of a prepaid Visa card?
Yes, you can transfer the balance of a prepaid Visa card to your bank account or another card using services like PayPal, Venmo, MoneyGram, or Square.
Keep in mind that each service may have different requirements and fees.
What gift cards work with Zelle?
Zelle is a money transfer service that works with bank accounts, not gift cards.
You cannot directly transfer the balance from a gift card to your bank account using Zelle.
You’ll need to use other methods, like PayPal or Venmo, to transfer the balance from the gift card before using Zelle.
In conclusion, transferring money from gift cards to your bank account is possible, but the process depends on the type of gift card you have.
With a range of methods available, such as PayPal, Venmo, or selling the gift card online, you can find a solution that works best for you.
Remember to consider any fees, requirements, and limitations when choosing a method.
By exploring these options, you can turn your unused gift card balances into cash that you can spend as you please.