How to Withdraw Cash From a Gift Card

Quick answer

• Most gift cards are designed for purchases, not cash withdrawals.
• Direct cash withdrawal is rarely possible without fees or specific card types.
• Selling the gift card for cash is a common workaround, often at a discount.
• Using the gift card to buy money orders or prepaid debit cards can sometimes provide cash.
• Some store-specific gift cards might allow cash back at checkout, but this is uncommon.
• Always check the gift card’s terms and conditions for specific rules.

Who this is for

• Individuals who received a gift card they cannot use for their intended purpose.
• People who prefer cash over store credit or specific merchandise.
• Those looking for alternative ways to access the value of a gift card.

What to check first (before you act)

Your Goal and Timeline

Before you try to get cash, be clear about why you need it and how soon. Are you trying to liquidate a small balance you’ll never use, or do you need a significant amount of cash quickly? Your goal will influence the best method and whether you’re willing to accept a discount.

Current Cash Flow

Assess your current financial situation. If you have ample cash flow and don’t urgently need the gift card’s value, you might have more flexibility to wait for a better selling price or use a method with fewer fees. If you’re on a tight budget, you may need to accept a less ideal solution to get cash now.

Emergency Fund or Safety Buffer

Do you have a healthy emergency fund? If unexpected expenses arise, having readily available cash is crucial. If your emergency fund is low, liquidating a gift card for cash might be a priority, but remember that most methods will reduce the card’s full value. Check the official source or your provider for details on any fees.

Debt and Interest Rates

Consider any outstanding debts you have. If you have high-interest debt (like credit cards), using the gift card’s value to pay down that debt might be a more financially sound decision than converting it to cash, especially if you’d have to sell it at a discount. Compare the potential discount from selling the card to the interest you’re paying on debt.

Credit Impact

While directly withdrawing cash from a gift card usually won’t impact your credit score, some methods of converting it to cash might. For example, if you were to use a cash advance on a credit card to essentially “buy” the gift card’s value (which is generally not recommended), that could incur fees and interest. Be mindful of any actions that could involve credit products.

Step-by-step (simple workflow)

Step 1: Read the Gift Card’s Terms and Conditions

• What to do: Locate the gift card and look for any website or phone number listed. Visit the website or call the number to find the card’s terms and conditions.
• What “good” looks like: You’ve found clear documentation outlining fees, expiration dates, and any restrictions on how the card’s value can be used.
• A common mistake and how to avoid it: Assuming all gift cards work the same way. Avoid this by always checking the specific card’s rules, as terms vary widely.

Step 2: Check for Remaining Balance and Expiration Date

• What to do: Use the website or phone number from Step 1 to check the exact balance and when the card expires.
• What “good” looks like: You know the precise amount available and have ample time before it expires.
• A common mistake and how to avoid it: Forgetting to check the balance and expiry. Avoid this by making it a priority early in the process; an expired card is worthless.

Step 3: Identify the Card Issuer

• What to do: Determine if the card is from a specific retailer (e.g., “Starbucks Card”), a general-purpose network (e.g., Visa, Mastercard, American Express), or a digital wallet platform.
• What “good” looks like: You know whether it’s a single-store card or a more widely accepted network card.
• A common mistake and how to avoid it: Not realizing a card is only for a specific store when you assume it’s like a Visa gift card. Avoid this by noting the branding on the card.

Step 4: Explore Direct Cash Back Options (Rare)

• What to do: If it’s a physical store gift card (e.g., a local boutique), ask at the point of sale if they offer cash back for gift card purchases. This is uncommon.
• What “good” looks like: The store offers cash back, and you can get cash for a portion or all of the balance without significant fees.
• A common mistake and how to avoid it: Assuming this is a common practice. Avoid this by understanding that most retailers do not offer this.

Step 5: Consider Selling the Gift Card

• What to do: Look for reputable online gift card marketplaces or local buy-back kiosks. These services will typically buy your gift card for a percentage of its face value.
• What “good” looks like: You find a marketplace with competitive rates and a secure transaction process, and you receive payment (usually electronic or check) for your card.
• A common mistake and how to avoid it: Using unverified or scam websites. Avoid this by sticking to well-known platforms with good reviews and clear terms.

Step 6: Evaluate Buying Money Orders or Prepaid Cards

• What to do: If the gift card is accepted at a retailer that sells money orders (like a grocery store or pharmacy), you might be able to purchase a money order with the gift card. Alternatively, you may be able to buy a prepaid debit card with the gift card and then withdraw cash from that prepaid card at an ATM.
• What “good” looks like: You successfully purchase a money order or prepaid card using the gift card, and you can then cash the money order or withdraw from the prepaid card.
• A common mistake and how to avoid it: Not checking for fees associated with money orders or prepaid cards. Avoid this by asking about all associated costs upfront.

Step 7: Use the Gift Card for Purchases You’d Make Anyway

• What to do: If none of the above options are ideal, use the gift card for everyday purchases like groceries, gas, or online shopping.
• What “good” looks like: You’ve effectively converted the gift card’s value into goods or services you would have bought with cash, freeing up your cash for other needs.
• A common mistake and how to avoid it: Buying unnecessary items just to use the gift card. Avoid this by sticking to essential purchases to maximize the card’s value for your actual needs.

Step 8: Check for Card-Specific Withdrawal Policies

• What to do: Some specialized gift cards, particularly those linked to financial institutions, might have specific instructions for cashing out. Review the issuer’s website or contact customer service.
• What “good” looks like: You find a legitimate, albeit possibly fee-based, method to convert the card to cash directly through the issuer.
• A common mistake and how to avoid it: Overlooking specific instructions for network-branded cards (like Visa gift cards). Avoid this by treating these differently from single-store cards.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
<strong>Ignoring Terms and Conditions</strong>	Unexpected fees, expiration of balance, inability to use the card as intended, inability to convert to cash.	Always read the fine print. Check the issuer’s website or call customer service for specific rules.
<strong>Waiting Too Long to Check Balance</strong>	Forgetting the card exists, letting it expire with a balance, making plans based on an inaccurate balance.	Check the balance and expiration date as soon as you receive the card. Set a calendar reminder if needed.
<strong>Using Unverified Online Sellers</strong>	Scams, receiving less than agreed upon, never receiving payment, identity theft.	Only use reputable, well-established gift card marketplaces with clear buyer protection policies. Read reviews carefully.
<strong>Assuming Cash Back is Standard</strong>	Disappointment, wasted trip to a store that doesn’t offer it, inability to get cash when needed.	Understand that cash back on gift cards is very rare. Do not rely on this method for quick cash.
<strong>Buying Unnecessary Items</strong>	Overspending, accumulating clutter, not actually achieving the goal of getting cash value for needed items.	Stick to essential purchases or items you genuinely need. Treat the gift card as a substitute for cash you would have spent anyway.
<strong>Not Factoring in Fees</strong>	Receiving less cash than expected, the conversion method becoming uneconomical.	Always ask about or check for any transaction fees, processing fees, or service charges before proceeding with any cash conversion method.
<strong>Trying to “Cash Out” at an ATM</strong>	Most gift cards cannot be used directly at ATMs for cash withdrawals unless they are specifically designed for it and linked to an account.	Understand that direct ATM cash withdrawals are typically only possible with prepaid debit cards or certain types of reloadable cards, not standard retail or network gift cards.
<strong>Selling Below Market Value</strong>	Losing more of the gift card’s actual worth than necessary.	Compare offers from multiple reputable gift card marketplaces to ensure you get the best possible rate for selling your card.
<strong>Not Considering Alternatives</strong>	Missing out on better financial decisions, like paying down high-interest debt.	Before converting to cash, evaluate if using the gift card’s value for debt reduction or other financial goals would be more beneficial.

Decision rules (simple if/then)

• If the gift card is for a specific retailer and you shop there regularly, then use it for purchases there because it’s the simplest way to access its full value.
• If the gift card is for a specific retailer and you never shop there, then consider selling it because you’ll get some cash back rather than letting it expire unused.
• If the gift card is a general-purpose network card (Visa, Mastercard) and you need cash urgently, then explore selling it on a reputable marketplace, because this is often the quickest way to get cash, albeit at a discount.
• If the gift card is a general-purpose network card and you have time, then investigate buying a money order or a prepaid debit card, because these methods might yield more of the card’s value than selling, though they can be more complex.
• If the gift card balance is very small (e.g., under $10), then consider using it for a small treat or donation, because the effort to convert it to cash might outweigh the minimal value.
• If you can get cash back at the point of sale for the gift card, then do so, because this is the most direct and usually fee-free way to get cash.
• If you have high-interest debt, then consider using the gift card’s value to pay down that debt instead of converting it to cash, because saving on interest is often more financially beneficial.
• If the gift card has an expiration date that is very soon, then prioritize using or selling it immediately, because an expired card is worthless.
• If the gift card issuer has specific instructions for cash redemption, then follow those instructions, because they are the official and likely most secure method.
• If you are unsure about a selling platform’s legitimacy, then do not proceed, because it’s better to lose the potential cash than to fall victim to a scam.

FAQ

Can I withdraw cash directly from a gift card at an ATM?

Generally, no. Most retail and network-branded gift cards (like Visa or Mastercard gift cards) are not linked to bank accounts and cannot be used at ATMs for cash withdrawals. This functionality is usually reserved for prepaid debit cards that have been specifically set up for ATM access.

How can I get cash for a store-specific gift card I won’t use?

The most common methods are selling the card on a gift card exchange website or app, or sometimes using it to purchase a money order if the store allows. Selling will likely get you a percentage of the card’s value, while using it for a money order might have fees.

What’s the best way to convert a Visa gift card to cash?

For Visa gift cards, selling them on a reputable online marketplace is often the most efficient way to get cash. Some people also use them to buy prepaid debit cards or money orders, but check for associated fees. Direct cash withdrawal is rarely an option.

Will I get the full value of the gift card if I sell it?

No, you will typically receive less than the full face value when selling a gift card. Marketplaces and buyers need to make a profit, so they offer a discounted rate, which can vary based on the card’s brand and demand.

Are there any fees involved in getting cash from a gift card?

Yes, there can be. Selling a gift card usually involves a fee from the marketplace. Methods like buying money orders or prepaid cards might also incur transaction fees. Always check for fees before proceeding.

What if my gift card has a very small balance?

For very small balances (e.g., under $10), it’s often not worth the effort or potential fees to convert it to cash. Consider using it for a small treat, a donation, or combining it with other payment methods for a larger purchase.

Can I use a gift card to buy a money order and then cash it?

Yes, this is a viable strategy if the retailer where you plan to buy the money order accepts gift cards as payment. You’ll then take the money order to a location that cashes them, such as a grocery store or check-cashing service, which may charge a fee.

What are the risks of selling gift cards online?

The primary risks involve scams. You could end up on a fraudulent website, never receive payment after sending your card details, or have your personal information compromised. Always use well-known and trusted platforms.

What this page does NOT cover (and where to go next)

• International gift card conversions: This guide focuses on gift cards for the US market.
• Gift card scams and how to avoid them: While mentioned, a deep dive into identifying and reporting scams is not included.
• Tax implications of selling gift cards: Depending on your jurisdiction and the amounts involved, there could be tax considerations.
• Using gift cards for cryptocurrency purchases: This advanced topic involves specific platforms and risks.
• Legal regulations surrounding gift cards: State and federal laws govern expiration dates, fees, and dormancy, which are not detailed here.