Options for Trading In Gift Cards for Cash

Quick answer

• Yes, you can convert unused gift cards into cash, but often at a discount.
• Online platforms and gift card exchange kiosks are common methods.
• In-person sales or peer-to-peer exchanges are also possible but carry more risk.
• Understand that you’ll likely receive less than the card’s face value.
• Be aware of fees, processing times, and potential scams.
• Always check the terms and conditions of any exchange service.

Who this is for

• Individuals with unwanted gift cards they’d prefer to convert to cash.
• People looking for ways to declutter or free up funds from unused store credit.
• Those who have received gift cards for stores or services they don’t use.

What to check first (before you act)

Your Goal and Timeline

Before you start looking for ways to trade in gift cards, clarify what you want to achieve. Are you trying to get cash as quickly as possible, or are you willing to wait for a better rate? Knowing your priority will help you choose the best method. For example, a quick cash-out option might offer a lower percentage of the card’s value than a service with a longer processing time.

Current Cash Flow

How urgently do you need the money from your gift cards? If you have immediate financial needs, a faster but lower-paying option might be necessary. If you can afford to wait, you might find a better return by using a platform that takes more time to find a buyer for your card. Assess your current budget and spending to determine your flexibility.

Emergency Fund or Safety Buffer

Do you have a healthy emergency fund in place? If your finances are already tight, relying on the cash from gift cards might not be a sustainable solution. It’s generally wiser to prioritize building an emergency fund before looking for ways to liquidate smaller assets. If you’re considering this as a way to boost savings, ensure it’s part of a larger financial plan.

Debt and Interest Rates

If you have high-interest debt, like credit card balances, consider whether the money from selling gift cards would be better used to pay that down. The interest you’re paying on debt often far exceeds any return you might get from selling a gift card, even at a slight discount. Prioritizing debt reduction can save you significant money in the long run.

Credit Impact

Selling gift cards directly for cash generally has no impact on your credit score. However, if you are using a service that involves a credit check for a loan or advance against the gift card value, this could affect your credit. Always understand the terms of any service before agreeing to them.

Step-by-step (simple workflow)

1. Assess Your Gift Cards: Gather all your unused gift cards. Note the merchant, the balance on each card, and any expiration dates.

• What “good” looks like: You have a clear inventory of all your gift cards, their values, and any restrictions.
• Common mistake and how to avoid it: Forgetting to check expiration dates. Always check the back of the card or the merchant’s website to avoid losing value.

2. Determine Card Value: For each card, confirm its exact balance. Many merchant websites allow you to check this online.

• What “good” looks like: You know the precise dollar amount available on each gift card.
• Common mistake and how to avoid it: Assuming the balance is what you remember. Always verify the current balance to avoid miscalculations when selling.

3. Research Exchange Platforms: Look for reputable online gift card exchange websites or apps. Compare their payout rates, fees, and customer reviews.

• What “good” looks like: You have a shortlist of trusted platforms with transparent terms and competitive rates.
• Common mistake and how to avoid it: Choosing the first platform you see without comparing. This can lead to lower payout rates or hidden fees.

4. Compare Payout Percentages: Understand that you will almost always receive less than the face value of the gift card. Different platforms offer different percentages based on the merchant’s popularity and demand.

• What “good” looks like: You understand the percentage of the card’s value you can expect to receive from each platform.
• Common mistake and how to avoid it: Expecting to get 100% of the face value. This is rarely possible, and being realistic sets you up for a better experience.

5. Consider Exchange Kiosks: If you prefer an in-person transaction, locate gift card exchange kiosks in shopping malls or grocery stores. These offer immediate cash but often at lower rates than online platforms.

• What “good” looks like: You know where a convenient kiosk is located and can check its current offer for your specific card.
• Common mistake and how to avoid it: Not checking the kiosk’s rates before inserting your card. Some kiosks have very low payout percentages.

6. Choose a Selling Method: Based on your research and priorities (speed vs. payout rate), select the platform or method that best suits you.

• What “good” looks like: You’ve made an informed decision about where and how to sell your gift card.
• Common mistake and how to avoid it: Rushing into a sale without considering all options. Take your time to find the best deal.

7. Initiate the Sale: Follow the instructions on the chosen platform or kiosk. This usually involves entering the gift card number, PIN, and desired sale amount.

• What “good” looks like: The transaction process is clear, and you’ve accurately entered all required information.
• Common mistake and how to avoid it: Typos in the gift card number or PIN. Double-check all digits before submitting to avoid delays or rejection.

8. Receive Payment: Once your card is verified, the platform will process your payment. This might be via direct deposit, PayPal, check, or cash (for kiosks).

• What “good” looks like: You receive the agreed-upon payment in the expected timeframe.
• Common mistake and how to avoid it: Not understanding the payment methods and timelines. Some platforms take several business days to issue payment.

9. Verify Funds: Ensure you have received the correct amount of money and that the gift card has been deactivated.

• What “good” looks like: Your bank account or payment method reflects the received funds, and the gift card balance is zero.
• Common mistake and how to avoid it: Not checking your account after the expected payment period. Follow up immediately if funds are missing.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Selling to an unverified buyer	Loss of gift card value, potential for scams, no recourse.	Use reputable, established exchange platforms with clear terms and buyer protection.
Not checking card balance accurately	Receiving less money than expected or being rejected by the platform.	Always verify the exact balance on the merchant’s website or by calling customer service.
Ignoring expiration dates	The gift card becoming worthless, losing the entire potential cash value.	Check expiration dates before listing and prioritize selling cards that are nearing expiry.
Overlooking platform fees	Receiving significantly less cash than initially anticipated.	Read the fine print regarding transaction fees, processing fees, and payout deductions.
Not comparing payout rates	Accepting a lower cash-out percentage than available elsewhere.	Compare offers from multiple reputable exchange sites before committing to a sale.
Providing incorrect card details	Delays in processing, rejection of the sale, or potential fraud.	Double-check gift card numbers, PINs, and expiry dates before submitting any transaction.
Using a platform with poor reviews	Risk of non-payment, data breaches, or fraudulent activity.	Stick to well-known, highly-rated platforms with a track record of reliable service.
Selling gift cards for less than face value without necessity	Leaving money on the table, especially for high-demand merchants.	Prioritize selling cards from popular retailers first, as they often fetch better rates.
Not understanding payment timelines	Frustration and unmet expectations if cash is needed quickly.	Clarify the expected payment processing time for each platform before initiating a sale.
Selling to friends without formalizing	Misunderstandings about payment or card deactivation, leading to relationship strain.	For peer-to-peer sales, agree on the price, payment method, and confirm card deactivation.

Decision rules (simple if/then)

• If you have a gift card from a very popular retailer (e.g., Amazon, Target), then list it on multiple online exchanges to compare rates because popular cards often have higher buyback percentages.
• If you need cash immediately, then consider a gift card exchange kiosk because they offer instant cash, but be prepared for a lower payout rate.
• If your gift card is close to expiring, then prioritize selling it on any platform that accepts it, even at a slightly lower rate, because it’s better to get some money than none.
• If you have a gift card from a niche or less popular store, then you might receive a lower payout percentage or find fewer buyers because demand is lower.
• If a platform promises a payout rate that seems too good to be true, then be cautious and research them thoroughly because it could be a scam.
• If you have multiple gift cards, then group them by merchant and check if any platforms offer better rates for bulk sales because some services incentivize larger transactions.
• If you are selling a high-value gift card (e.g., over $100), then consider using a platform that offers secure payment methods like direct deposit or PayPal because it reduces the risk of fraud.
• If you are selling to a friend, then agree on the exact cash amount and confirm the gift card has been deactivated after the transaction because this prevents misunderstandings.
• If you have the option to receive payment via check or direct deposit, then consider your personal preference and the processing time because direct deposit is usually faster.
• If you are unsure about a platform’s legitimacy, then check their customer reviews and look for contact information and a physical address because transparency is a good sign.

FAQ

Can I trade in any gift card for cash?

Most popular gift cards from major retailers can be traded in. However, some specialized or small business gift cards may not be accepted by exchange platforms. Always check the platform’s list of accepted merchants.

How much money will I get for my gift card?

You will almost always receive less than the face value of the gift card. The percentage you receive depends on the merchant’s popularity, the card’s balance, and the platform’s fees. Expect anywhere from 50% to over 90% of the value, depending on these factors.

Are gift card exchange websites safe?

Reputable websites are generally safe, but it’s crucial to use well-known platforms with good reviews. Be wary of sites that ask for excessive personal information or have unprofessional designs. Always check for secure payment processing.

What’s the difference between online platforms and kiosks?

Online platforms often offer better payout rates but take longer to process payments. Kiosks provide instant cash but typically offer lower percentages of the gift card’s value.

Do gift cards expire when I sell them?

Once a gift card is sold and the transaction is complete, the buyer will use the card. If you haven’t sold it yet, the expiration date remains the same as set by the original issuer. It’s best to sell before it expires.

Can I sell a gift card with a zero balance?

No, you cannot sell a gift card that has a zero balance. Exchange platforms require a remaining balance to function.

What if the platform doesn’t pay me?

If you used a reputable platform and are experiencing issues, contact their customer support immediately. If it’s an unverified seller or a scam, you may have limited recourse, which is why using trusted services is vital.

Can I negotiate the price for my gift card?

Generally, the prices offered by exchange platforms are fixed based on their algorithms and market demand. You cannot typically negotiate the rate directly.

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

• Specific real-time exchange rates: Rates fluctuate constantly based on supply and demand for different merchants. Visit exchange websites directly for current offers.
• Tax implications of selling gift cards: In most cases, selling a gift card for less than its face value isn’t a taxable event for individuals, but consult a tax professional for personalized advice.
• International gift card exchanges: This guide focuses on options available within the United States.
• How to find obscure or expired gift cards: This guide assumes you have standard, valid gift cards from known retailers.
• Using gift cards for investments: While you can liquidate gift cards, they are not an investment vehicle themselves. Explore investment accounts for that purpose.
• Negotiating with individual buyers: Peer-to-peer sales can be complex and are not covered in detail here.