How to Easily Transfer Money from a Gift Card to Your Bank Account
We’ve all been through it. You receive a gift card for your birthday or Christmas, and you can’t wait to spend it. But then you get to the store and realize that you don’t really like anything there. Or you find something you want, but it costs just a few dollars more than the amount on your gift card. So what do you do? You could just leave the money on the card and hope that you’ll find something you want to buy later. Or you could go through the hassle of trying to find someone who will buy the card from you for cash.
There is a third option, though, that is much easier and doesn’t require you to find someone to buy the card from you. You can transfer the money from the gift card directly into your bank account. This way, you’ll have the flexibility to spend the money how you want, when you want. Plus, you won’t have to worry about the card getting lost or stolen.
In this article, you are going to learn various ways you can transfer money from a gift card to your bank account.
Why Bother with the Transfer?
There are a few reasons why you might want to transfer money from your gift card to your bank account (by the way, the background process is fascinating) instead of just spending the money on the card. For one, it can be more convenient.
If you have the funds in your bank account, you can spend them online or in-store without having to carry around the physical gift card. This can be helpful if you lose the card or if it gets stolen.
Another reason to transfer money from your gift card to your bank account is that it can help you keep track of your spending. When the funds are in your bank account, you can see exactly how much money you have available to spend. This can help you stay within your budget and avoid overspending.
Plus, if you have a rewards credit card, you may be able to earn points or cash back on your purchase if you use your card to pay for the transfer.
So now that we’ve gone over some of the reasons why you might want to transfer money from your gift card to your bank account, let’s take a look at how to do it.
How to Transfer Money from a Gift Card to Your Bank Account
There are a few different ways that you can transfer money from your gift card to your bank account. We’ll go over some of the most popular methods below.
Selling Your Gift Card
One option is to use a service like CardCash or Cardpool. With these services, you can sell your gift card for cash. Once you have the cash, you can then deposit it into your bank account.
Editor’s note: Cardpool is discontinued, we’re only mentioning it because it was quite popular and most people would recognize the name and understand the procedure.
Another option is to use a service like Raise.com. With Raise, you can sell your gift card for less than its face value. So, if you have a $100 gift card, you could sell it for $85. Once the sale is complete, the funds will be deposited into your Raise account. From there, you can cash out and transfer the money to your bank account.
A third option is to use a service like Gyft. With Gyft, you can purchase a gift card with your credit card and then redeem it for cash. The funds will then be deposited into your PayPal account. From there, you can transfer the money to your bank account (or use PayPal to make a purchase).
Direct Transfer of the Funds
This is by far the best option, because it lets you redeem the full value of your gift card. When you sell it on an online marketplace, you’re losing some of the value to fees. When you redeem it for cash, you’re losing some of the value because you’re not getting the full face value of the gift card.
With a direct transfer, you can redeem your gift card for its full value and then deposit the money into your bank account. The best way to do this is with
You can transfer the funds from your gift card to your bank account using a service like Square Cash or Venmo. Or with another method we’re going to explain in detail later on.
With these services, you’ll need to link your credit or debit card to your account. Once that’s done, you can use the app to transfer money from your gift card to your bank account.
Keep in mind that there may be fees associated with some of these methods. For example, CardCash charges a $0.95 transaction fee. And Raise.com charges a $0.50 fee for each gift card that you sell.
Most of the time, the fees are worth it because you’ll still end up with more money in your bank account than you would if you just spent the gift card. But it’s something to keep in mind before you decide which method to use.
Now that we’ve gone over some of the most popular methods for transferring money from a gift card to your bank account, let’s take a look at our preferred method to do it.
How to Directly Transfer Funds from a Gift Card to Your Bank Account with PayPal
This section is for those who have a gift card they don’t particularly care about, and who would rather have the cash.
Editor’s note: this method doesn’t work with “closed” cards, like those you buy at Starbucks for example. It’s for the “open ended” ones, like Visa or American Express.
The best way to transfer money from a gift card to your bank account is via PayPal. Open your PayPal account and send an invoice to another email address of yours. Then, pay the invoice with your gift card. Once the payment is processed, you’ll have the money in your PayPal account. From there, you can transfer it to your bank account.
The only downside to this method is that it takes a few days for the funds to show up in your PayPal account. But once they’re there, you can transfer them to your bank account right away.
Also, you will have to pay some fees, but they’re usually quite small. For example, if you’re using a Visa gift card, you’ll have to pay a $0.30 transaction fee.
This method is great because it’s quick, easy, and you don’t have to worry about losing any of the value of your gift card.
How to Directly Transfer Money to Your Bank Account with Venmo or SquareCash
If you don’t have a PayPal account, or if you just prefer to use another service, you can also transfer money from your gift card to your bank account with Venmo or SquareCash.
Both of these services are similar to PayPal, in that they let you link your debit or credit card and then use the app to transfer money. The only difference is that with Venmo and SquareCash, you can transfer money to your bank account instantly.
To use either of these services, just download the app and create an account. Then, link your debit or credit card. Once that’s done, you can use the app to transfer money from your gift card to your bank account.
Both services charge a small fee for each transaction. For example, with SquareCash, you’ll pay a $0.50 fee for each transfer. And with Venmo, you’ll pay a $0.25 fee for each transfer.
Transferring money with Venmo or SquareCash is a great option if you need the money in your bank account right away.
What about Branded Gift Cards (i.e. Home Depot, Starbucks, etc)?
If you have a branded gift card (i.e. one from Starbucks, Home Depot, etc.), you can still transfer the money to your bank account. However, the process is a bit different. You have 2 options:
- Sell the gift card on a service like CardCash or Raise.com
- Buy something with your gift card and re-sell it online
The second method is a bit annoying, but is more likely to repay you the full value of your gift card. Let’s say you have a $100 Home Depot gift card. You can use it to buy something at Home Depot and then sell it on eBay for $100 (or why not, $120).
You’ll have to pay a listing fee and possibly a PayPal fee, but you should still end up with more money than if you just sold the gift card itself.
The first method is easier, but you will lose some of the value of your gift card. For example, if you have a $100 Starbucks gift card, you might be able to sell it for $85 on CardCash.
Either way, you’ll end up with the money in your bank account. And that’s the important part.
Conclusion
There are a few different ways that you can transfer money from a gift card to your bank account. The best way to do it is with PayPal, Venmo, or SquareCash. All of these services have small fees associated with them, but they’re worth it because you’ll end up with more money in your bank account than you would if you just spent the gift card.
And there are ways to get the money onto your bank account even with branded gift cards. Just remember that you’ll either have to pay a small fee or sell the gift card for less than its value.
But, sometimes, you can get some money out of it if you manage to resell stuff for more than you paid.
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