How to transfer money from gift cards to a bank account

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.

What is a gift card?

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:

• Closed-loop cards. These types of gift cards can typically only be used at specific merchants, such as retail stores, grocery stores, or gas stations.
• Open-loop cards. When a gift card is not tied to a specific merchant, it's known as an open-loop card. Open-loop gift cards can be used anywhere as long as the merchant accepts the payment type.

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.

How to transfer a gift card to a digital wallet

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:

1. Open the digital wallet on a mobile device.
2. Click add to wallet.
3. Select payment card or gift card.
4. Select a new credit card (if it's an open-loop card).
5. Scan the gift card number or enter the number manually.
6. Add the expiration date and CVC (security number).

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 Funds may be able to be withdrawn to a linked bank account once added to a digital wallet depending on the gift card issuer, the terms of the gift card, and the accounts being used to transfer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.

How to get cash from a gift card

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.