Gift cards are a popular option for people looking to purchase a present for someone, for those seeking to spend at specific stores, or even just someone looking to manage their budget.
Before individuals buy a gift card, it’s important to understand the different types of cards available and what they may be used for.
For instance, some gift cards can only be used at specific merchants, while others may be used at almost all retailers. To ensure a gift doesn’t go to waste, some people may wonder if it's possible to transfer money from a gift card to a bank account.
In this guide, discover potential ways to transfer a gift card to a bank account.
Before getting into the details of transferring money from a gift card to a bank account, it's important to understand how gift cards work. A gift card is a prepaid card or digital code that can allow someone to make purchases in store and online. The amount a gift card is worth can depend on how much was loaded onto the balance. Gift cards may come with fees and an expiration date.
Here are two common types of gift cards:
Some gift cards are reloadable, but not all of them. Ability to reload a gift card will depend on the type of card and merchant.
It may be possible to add gift cards to a digital wallet. The availability to do so will come down to the type of gift card and the digital wallet.
The actual process to add a gift card to a digital wallet will also differ depending on the wallet and card. However, some general steps for adding an open-loop gift card may be:
Once the gift card is linked, the person can use their digital wallet to access the gift card. Funds may be able to be withdrawn to a linked bank account once added to a digital wallet depending on the gift card issuer, the terms of the gift card, and the accounts being used to transfer funds. There may be associated fees charged to make this kind of transfer, so be sure to review all terms and conditions.
Some gift cards may also require activation before they can be added to a digital wallet or used for purchases. The general terms and conditions of the specific gift card will still apply when using it via a digital wallet.
Besides adding a gift card to a digital wallet, some people may wonder if they can cash out a gift card. While it's possible to convert a gift card into cash, it may take a few extra steps.
Selling a gift card can be a quick way to turn it into cash. There are websites and apps that may allow people to sell their gift cards. Through the website or app, someone would select the merchant and enter the balance on the card. The website would then make an offer. How much is offered typically depends on supply and demand.
A potential downside is that people generally don’t get the full value of the gift card in cash. In addition, payouts are typically not instant since the gift card values need to be verified. It’s important to use a legitimate site when doing so to avoid potential scammers or those looking to steal sensitive information.
Learn how to add prepaid gift cards to a PayPal wallet.
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