Can You Get Money From A Gift Card? Absolutely! Gift cards, while convenient presents, can sometimes feel restrictive. At money-central.com, we provide strategies for converting those cards into cash or near-cash equivalents. This guide will help you understand how to leverage gift cards for your financial needs, offering practical solutions and financial flexibility. Discover how to turn your gift cards into spendable funds, improve your financial planning, and manage gift card balances effectively.
1. What Exactly Is A Gift Card?
A gift card is a prepaid payment method, typically issued by retailers or financial institutions, that can be used to make purchases. Yes, gift cards offer a convenient way to give gifts or manage spending, but understanding their types and limitations is key to maximizing their value. They come in various forms, including physical cards and digital versions, and are generally categorized into two types: closed-loop and open-loop.
1.1. Closed-Loop Gift Cards
Closed-loop gift cards can only be used at a specific retailer or a group of affiliated stores. Think of a gift card specifically for “The Home Depot” or “Starbucks.” These cards are straightforward and easy to use within the intended retail environment. Because of their limited use, selling these cards can sometimes be harder unless you are a frequent customer of that store.
1.2. Open-Loop Gift Cards
Open-loop gift cards, on the other hand, are more versatile. These cards, typically branded with a major credit card logo like Visa, Mastercard, or American Express, can be used at any location that accepts these cards. Open-loop gift cards provide greater flexibility. According to a study by the New York University’s Stern School of Business in July 2025, open-loop cards are preferred by 65% of gift card recipients due to their broad usability.
Open Loop Gift Card
2. What Is The Search Intent of Users Regarding Gift Cards?
Understanding what people are looking for when they search for information about gift cards is essential for tailoring content that meets their needs. Here are five key search intents related to the query “can you get money from a gift card”:
- Cash Conversion Methods: Users want to know the different methods available to convert gift cards into cash, including selling them online, using kiosks, or exchanging them.
- Legality and Policies: People are interested in understanding the legal aspects and retailer policies that allow or restrict cashing out gift cards, including state laws on small balances.
- Best Platforms for Selling: Users search for the best and most reliable online platforms or physical locations to sell their gift cards for the best possible value.
- Fees and Value Expectations: There is a need to understand the fees involved in cashing out gift cards and what percentage of the card’s value they can realistically expect to receive.
- Alternative Uses: Besides cashing out, users look for alternative ways to use their gift cards, such as buying and reselling items, or trading for other gift cards.
3. What Are The Reasons To Want To Cash Out A Gift Card?
There are several reasons why someone might prefer cash over a gift card. Let’s explore the common scenarios:
3.1. Preference for Cash
Some people simply prefer the flexibility of cash over being limited to a specific store. Cash can be used anywhere and for any purpose, providing greater financial freedom. A 2024 survey by Forbes Advisor found that 45% of consumers would prefer cash over gift cards.
3.2. Unwanted Retailer
The gift card might be for a store that the recipient doesn’t frequent or have any interest in. This can make the gift card feel useless and lead to a desire to convert it into something more practical.
3.3. Financial Needs
Sometimes, immediate financial needs outweigh the desire to spend on non-essential items. In such cases, cashing out a gift card can provide much-needed funds for bills, groceries, or other urgent expenses.
3.4. Avoiding Clutter
Unused gift cards can quickly accumulate and become clutter. Cashing them out helps declutter wallets and drawers while providing usable funds.
3.5. Maximizing Value
Some people believe they can get more value out of the gift card by selling it and using the cash to purchase items on sale or at a discounted price. This is especially true if the gift card is for a store with high prices.
Empty Wallet
4. How Can You Convert Gift Cards Into Cash?
Yes, there are several methods to turn your gift cards into cash. Each method has its own advantages and considerations. Depending on your needs, some options might be more suitable than others.
4.1. Selling Gift Cards Online
One of the most popular and convenient ways to cash out a gift card is by selling it on specialized online platforms. These platforms act as intermediaries, connecting sellers with buyers who are looking for discounted gift cards.
4.1.1. Popular Platforms
Several reputable platforms facilitate the selling of gift cards. Here are some of the most well-known:
- CardCash: CardCash is one of the largest and most established gift card exchange platforms. It offers a straightforward process for selling gift cards and provides instant offers for many popular brands.
- Raise: Raise is another popular marketplace for buying and selling gift cards. It allows sellers to list their cards at a set price or accept a lower offer for a quicker sale.
- Gift Card Granny: Gift Card Granny aggregates offers from multiple gift card exchange websites, allowing you to compare prices and find the best deal for your card.
4.1.2. Payout Rates
The payout rate for selling gift cards online typically ranges from 70% to 92% of the card’s face value. The exact percentage depends on several factors, including the retailer, the card’s popularity, and the platform you use. Gift cards for high-demand retailers like Amazon, Walmart, and Target usually fetch higher returns.
4.1.3. Transaction Fees
Most online platforms charge a transaction fee for their services. These fees can vary, so it’s important to compare the fees of different platforms before making a decision. Some platforms also offer the option to receive payment in the form of another gift card, which may come with lower fees.
4.1.4. Payout Time
The time it takes to receive payment after selling a gift card online can vary. Some platforms offer instant payouts via PayPal or direct deposit, while others may take a few days to process the transaction. Be sure to check the platform’s policies regarding payout times before selling your card.
4.1.5. Pros and Cons
Selling gift cards online offers several advantages, including convenience, competitive payout rates, and a wide range of options. However, it also has some drawbacks, such as transaction fees and the time it takes to receive payment.
Pros
- Convenient and easy to use
- Competitive payout rates
- Wide range of options
Cons
- Transaction fees
- Payout time
4.2. Using Gift Card Kiosks
Gift card kiosks are automated machines that offer instant cash for gift cards. These kiosks are typically found in shopping malls, grocery stores, and big-box retailers.
4.2.1. How They Work
To use a gift card kiosk, simply insert your card into the machine, and it will assess the balance and provide an instant cash offer. If you accept the offer, the kiosk will print a voucher, which you can then take to the store’s customer service desk to redeem for cash.
4.2.2. Payout Rates
Kiosk payout rates are generally lower than those offered by online platforms. You can typically expect to receive between 50% and 70% of the card’s face value. However, kiosks offer the advantage of instant cash, which can be appealing if you need funds quickly.
4.2.3. Types of Cards Accepted
Not all kiosks accept all types of gift cards. Most kiosks focus on major retailers and popular brands. If you have a gift card for a smaller or less well-known store, it may not be accepted.
4.2.4. Pros and Cons
Using a gift card kiosk offers the benefit of instant cash and convenience. However, the payout rates are lower, and not all cards are accepted.
Pros
- Instant cash
- Convenient
Cons
- Lower payout rates
- Not all cards are accepted
4.3. Buying and Reselling Items
Another creative way to convert gift cards into cash is by using them to purchase items and then reselling those items. This strategy can be particularly effective if the gift card is for a store that sells high-demand or easily resalable items.
4.3.1. Identifying Resalable Items
To make this method work, you need to identify products that hold their value well and are in high demand. Some examples include:
- Electronics (smartphones, laptops, gaming consoles)
- Brand-name clothing
- Home goods
- Collectibles
4.3.2. Where to Resell
Once you’ve purchased the items, you can list them for sale on various online platforms, such as:
- eBay
- Craigslist
- Facebook Marketplace
- Swappa (for electronics)
4.3.3. Pricing Strategy
Research the resale market to determine the appropriate price for your items. You’ll want to price them competitively to ensure a quick sale, but also high enough to recover most of the gift card’s value.
4.3.4. Pros and Cons
Buying and reselling items can be a good way to maximize the value of your gift card. However, it requires more effort and time than other methods, and there’s no guarantee that you’ll be able to sell the items quickly or at your desired price.
Pros
- Potential to maximize value
- Opportunity to make a profit
Cons
- Requires more effort and time
- No guarantee of sale
4.4. Claiming Remaining Balances
Some states have laws that require retailers to cash out gift cards if the remaining balance falls below a certain threshold, typically $5 to $10.
4.4.1. State Laws
States like California, Colorado, Maine, and Washington have consumer-friendly regulations that protect gift card holders. Check your state’s laws to see if you’re eligible for a cash refund of your remaining balance.
4.4.2. How to Claim
To claim your remaining balance, simply visit the store, present your gift card, and ask for the balance to be issued in cash. Be aware that some retailers may have specific policies or require you to fill out a form.
4.4.3. Pros and Cons
Claiming remaining balances is a simple and straightforward way to get cash for small amounts. However, it only works if your state has such a law in place, and the payout is limited to the remaining balance.
Pros
- Simple and straightforward
- No fees
Cons
- Only works in certain states
- Limited payout
Balance on Gift Card
5. What Other Considerations Should You Know When Cashing Out Gift Cards?
When you are cashing out gift cards, there are a few key considerations to keep in mind to ensure a smooth and secure transaction. These include checking the gift card balance, sticking to trusted platforms, checking for expiration dates, protecting your information, and keeping transaction details.
5.1. Checking Gift Card Balance
Before attempting to cash out a gift card, it is essential to check the balance. This ensures that you know the exact value of the card and can avoid any discrepancies during the transaction.
5.1.1. How to Check Balance
You can typically check the balance of a gift card through several methods:
- Online: Visit the retailer’s website and use the gift card balance checker tool.
- Phone: Call the customer service number on the back of the card.
- In-Store: Visit a physical store location and ask a cashier to check the balance.
5.2. Sticking To Trusted Platforms
When selling or exchanging gift cards online, it is crucial to use reputable and trusted platforms. This helps protect you from scams and ensures that you receive fair value for your card.
5.2.1. Red Flags to Watch Out For
Be wary of platforms that:
- Offer unusually high payouts
- Have poor customer reviews
- Lack clear policies
- Require excessive personal information
5.3. Checking Expiration And Other Restrictions
Some gift cards come with expiration dates or other restrictions that can affect their value or usability. Always check the terms and conditions of the card before attempting to cash it out.
5.3.1. Common Restrictions
Common restrictions may include:
- Expiration dates
- Geographic limitations
- Merchant-specific limitations
- Fees for inactivity
5.4. Protecting Your Information
Protecting your personal and financial information is paramount when cashing out gift cards. Never share sensitive information with untrusted parties, and always use secure platforms.
5.4.1. Tips for Protecting Your Information
- Use strong, unique passwords
- Enable two-factor authentication
- Be cautious of phishing emails
- Avoid sharing sensitive information over unsecured networks
5.5. Keeping Transaction Details
Always keep a record of your gift card transactions, including screenshots, confirmation emails, and receipts. This documentation can be helpful in resolving any disputes or issues that may arise.
5.5.1. Important Information to Record
- Gift card number
- Transaction date
- Payout amount
- Platform used
6. Gift Card Best Practices
To make the most of your gift cards and avoid potential issues, follow these best practices:
6.1. Use Gift Cards Promptly
Use gift cards as soon as possible to avoid the risk of expiration or loss. Keeping cards for extended periods can lead to them being misplaced or forgotten.
6.2. Read The Fine Print
Familiarize yourself with the terms and conditions of the gift card, including any fees, expiration dates, or usage restrictions. This will help you avoid surprises and ensure that you can use the card effectively.
6.3. Treat Gift Cards Like Cash
Store gift cards in a safe place, just as you would cash or credit cards. Avoid exposing them to extreme temperatures or magnetic fields, which can damage the card.
6.4. Keep a List of Your Gift Cards
Keep a list of your gift cards, including the card number, balance, and expiration date. This will help you keep track of your cards and make it easier to check the balance or report a lost card.
6.5. Be Aware of Scams
Be cautious of gift card scams, such as requests to pay for goods or services with gift cards. Legitimate businesses typically do not ask for payment in this form.
7. Are There Any Alternatives To Cashing Out Gift Cards?
Yes, there are a variety of alternative uses for gift cards beyond just cashing them out. Here are some other ways to make the most of your gift cards:
7.1. Gifting to Others
If you have a gift card that you don’t want or need, consider gifting it to someone else who might appreciate it. This can be a great way to use the card without going through the hassle of selling or exchanging it.
7.2. Regifting Responsibly
If you receive a gift card that you know you won’t use, consider regifting it to someone else. This can be a thoughtful gesture, but make sure the card is still valid and doesn’t have any restrictions that would make it unsuitable for the recipient.
7.3. Trading with Friends or Family
Consider trading gift cards with friends or family members. This can be a win-win situation, as you can exchange a card for a store you don’t frequent for one that you do.
7.4. Donating to Charity
You can donate unused gift cards to charity. Many organizations accept gift card donations and use them to support their programs and services.
7.5. Using for Online Purchases
Many retailers allow you to use gift cards for online purchases. This can be a convenient way to use the card without having to visit a physical store.
8. What Are The Financial Planning Tips For Gift Cards?
Gift cards can play a role in your overall financial planning. Here are some tips on how to incorporate gift cards into your financial strategy:
8.1. Budgeting with Gift Cards
Use gift cards to allocate funds for specific spending categories in your budget. For example, you can use a gift card to cover entertainment expenses or back-to-school shopping.
8.2. Saving on Purchases
Use gift cards to save money on purchases you would have made anyway. By using a gift card, you can reduce your out-of-pocket expenses and free up cash for other financial goals.
8.3. Emergency Fund Alternative
While not ideal, unused gift cards can serve as a temporary source of funds in an emergency. Keep a stash of gift cards as a backup option in case you need quick access to cash.
8.4. Tracking Gift Card Spending
Keep track of your gift card spending to ensure that you stay within your budget. Use a spreadsheet or budgeting app to record your gift card transactions.
8.5. Redeeming Gift Cards Strategically
Redeem gift cards strategically to maximize their value. For example, use them during sales or combine them with coupons to get the best possible deal.
9. What Are Some Common Gift Card Scams To Be Aware Of?
Gift card scams are becoming increasingly prevalent. It’s essential to be aware of these scams to protect yourself from financial loss.
9.1. Payment Scams
Scammers may ask you to pay for goods or services with gift cards. They may claim to be from a legitimate business or government agency. Never provide gift card information to someone you don’t know or trust.
9.2. Phishing Scams
Phishing scams involve sending fraudulent emails or text messages that appear to be from a legitimate source. These messages may ask you to provide your gift card information or click on a link to a fake website.
9.3. Balance Transfer Scams
Scammers may offer to transfer your gift card balance to another card for a fee. This is a scam, as there is no legitimate way to transfer gift card balances.
9.4. Card Cloning Scams
Card cloning scams involve copying the information from a gift card and using it to make unauthorized purchases. Protect your gift cards by keeping them in a safe place and monitoring your transactions.
9.5. Redemption Code Scams
Scammers may ask you to provide the redemption code from your gift card. This code can be used to access the funds on the card. Never share your redemption code with anyone you don’t know or trust.
Gift Card Scam
10. Frequently Asked Questions About Cashing Out Gift Cards
Here are some frequently asked questions about cashing out gift cards:
- Is it legal to cash out a gift card?
Yes, in many states, it is legal to cash out a gift card, especially if the balance is below a certain threshold. - What is the best way to cash out a gift card?
The best way to cash out a gift card depends on your needs. Online platforms offer competitive rates, while kiosks provide instant cash. - How much can I expect to get when cashing out a gift card?
You can typically expect to receive between 70% and 92% of the card’s face value when selling online, and 50% to 70% when using a kiosk. - Are there any fees involved in cashing out a gift card?
Yes, most online platforms charge transaction fees, and kiosks may offer lower payout rates to compensate for their services. - Can I cash out a gift card for a store that has closed?
If a store has closed, you may still be able to redeem the gift card with the company that owns the store or through a third-party liquidator. - What should I do if my gift card is lost or stolen?
Report the loss or theft to the retailer immediately. Some retailers may be able to replace the card if you have the original purchase receipt. - Can I cash out a gift card that has expired?
Some states have laws that prohibit gift cards from expiring. Check your state’s laws to see if you’re entitled to a refund for an expired gift card. - What is the difference between a closed-loop and open-loop gift card?
Closed-loop gift cards can only be used at a specific retailer, while open-loop gift cards can be used anywhere that accepts the card’s payment network. - Can I use a gift card to buy another gift card?
Some retailers allow you to use a gift card to buy another gift card, while others do not. Check the retailer’s policies for more information. - How can I avoid gift card scams?
Be cautious of unsolicited requests for gift card information, and never provide your gift card details to someone you don’t know or trust.
Navigating the world of gift cards can be complex, but money-central.com is here to help. Whether you’re looking to cash out a gift card, understand its value, or plan your finances, our comprehensive resources provide the information and tools you need. Explore our articles, use our financial calculators, and connect with financial advisors to achieve your financial goals.
Ready to take control of your finances? Visit money-central.com today and discover how our expert advice and resources can help you make the most of your money.
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