Gift cards, those prepaid treasures from retailers and financial institutions, offer a convenient way to shop. Available as closed-loop cards for specific stores or open-loop cards accepted more broadly like Visa or Mastercard, they present themselves as versatile presents. However, the reality is that sometimes a gift card isn’t the ideal gift. Perhaps you prefer cash for bills, have immediate financial needs, or simply don’t want another card cluttering your wallet. If you’re wondering How To Cash In Gift Cards, you’re in the right place. This article breaks down practical methods to convert your gift cards into cash, highlighting important considerations for a secure and efficient process.
Top Methods to Turn Gift Cards into Cash
Each method for cashing in gift cards comes with its own set of advantages and trade-offs, affecting convenience, the cash payout you receive, and the effort required. The best approach for you will depend on the type of gift card you hold, how quickly you need the cash, and the percentage of the card’s value you’re willing to forgo for immediate funds.
1. Sell Gift Cards Online: Reach a Wider Market for Better Value
Selling gift cards online is a widely favored and effective strategy to convert them to cash. Online platforms offer greater reach and often result in a better return compared to other methods. Websites like CardCash, Raise, and Gift Card Granny act as intermediaries, connecting sellers like you with buyers seeking discounted gift cards.
These platforms operate by offering varying payout rates, generally ranging from 70% to 92% of the gift card’s face value. The exact percentage depends on factors like the retailer’s popularity and current market demand for that specific brand. For example, gift cards from major retailers such as Amazon or Walmart typically command higher resale values, while those from niche stores might receive lower offers. While online selling isn’t an instant cash solution, it exposes your gift card to a larger pool of potential buyers, increasing the likelihood of a more favorable payout.
Savings accounts growth graphic
Image alt text: Graphic illustrating the growth of savings accounts, symbolizing financial value and cash conversion.
Some platforms also facilitate gift card exchanges, allowing you to swap a card for one from a different store. For instance, you could exchange a gift card for a store you rarely visit for one from a retailer you frequent. This option provides more control and is particularly useful if immediate cash isn’t necessary, but you desire more relevant spending options.
Be aware that most online platforms may deduct a transaction fee, and the time to receive your payout can vary from a few business days up to a week, depending on the specific platform’s policies and processing times.
2. Utilize Gift Card Kiosks: Quick Cash at a Lower Rate
Gift card kiosks are automated machines that provide a fast way to cash in gift cards. Typically located in easily accessible places like grocery stores, shopping centers, and large retail stores, they offer immediate liquidity for your gift cards.
To use a kiosk, you simply insert your gift card into the machine. The kiosk will automatically assess the card’s balance and present you with an instant cash offer. It’s important to note that kiosks generally offer lower payouts compared to online selling, typically ranging from 50% to 70% of the card’s face value. This lower rate reflects the convenience and immediacy of the transaction. If you accept the offer, the kiosk will print a voucher, which you can then redeem for cash at the store’s customer service desk.
Keep in mind that kiosk offers are usually fixed and not negotiable. Additionally, kiosks might not accept all types of gift cards, especially those from smaller or less well-known retailers. However, for popular brands, kiosks offer a straightforward and rapid method to convert gift cards into cash when speed is a priority.
3. Buy and Resell Items: Maximize Value with Effort
For a more active approach to cashing in gift cards, consider using the card to purchase items and then reselling them. This method can be particularly effective if your gift card is for a store that sells in-demand or high-value goods, such as electronics, fashionable clothing, or home appliances. By strategically purchasing items with strong resale potential, you can potentially recover a significant portion, or even the entire value, of your gift card, and in some instances, even generate a small profit.
To implement this strategy successfully, identify products known for retaining value and high market demand. Examples include current smartphones, laptops, video game consoles, and branded apparel. After buying these items using your gift card, list them for sale on online marketplaces such as eBay, Craigslist, or Facebook Marketplace. For electronics specifically, specialized platforms like Swappa can be particularly effective.
Savings interest rate comparison graphic
Image alt text: Graphic comparing savings interest rates, highlighting potential financial gains from cash management.
Prior research into the resale market is crucial to ensure the items you purchase can be sold quickly and at a competitive price. While this method requires more time and effort compared to other options, it offers the potential to extract the maximum value from your gift card, especially for open-loop cards which offer greater purchasing flexibility.
4. Cash Out Remaining Balances: Reclaim Small Amounts Directly
Several states have implemented consumer protection laws requiring retailers to provide cash back for gift cards with very small remaining balances. These regulations typically apply when the balance falls below a certain threshold, often between $5 and $10. For instance, if you’ve used most of your gift card and have a small amount left that isn’t sufficient for a purchase, you can request to cash out the balance directly from the retailer. States like California, Colorado, Maine, and Washington have such laws in place.
The process is usually simple: visit the store, present your gift card, and request the remaining balance in cash. However, this option is only viable if you reside in a state with such legislation. It’s advisable to check your local consumer protection laws to confirm if this option is available to you. While the cash payout will be minimal, it’s an efficient way to recover value that might otherwise remain unused, and it avoids fees associated with third-party selling platforms or kiosks.
Important Reminders When Cashing Out Gift Cards
Before you proceed with any method to cash in gift cards, keep these crucial reminders in mind to ensure a smooth and secure transaction:
Verify Gift Card Balance First
Always check the balance of your gift card before attempting to cash it out. You can typically do this by visiting the retailer’s website, calling the customer service number printed on the back of the card, or using an online gift card balance checker tool. Knowing the exact balance beforehand will help you prevent transaction errors and ensure you receive the correct payout amount.
Use Reputable and Secure Platforms
When selling or exchanging gift cards online, it is essential to stick to well-known and trusted websites and marketplaces. Avoid using unfamiliar or unverified platforms, as they may pose risks of fraud, identity theft, or scams. Reputable sites generally have transparent policies, positive customer reviews, and reliable customer support, providing a safer transaction environment.
Check for Expiration Dates and Restrictions
Be aware that some gift cards may have expiration dates or specific restrictions on their use, such as geographic limitations or merchant-specific limitations. These conditions can significantly affect the card’s value and make it more difficult to sell or trade. Always carefully review the terms and conditions associated with your gift card before attempting to cash it out to understand any limitations that might apply.
Protect Your Personal Information
Protect your personal and financial information throughout the cash-out process. Never share sensitive details like your Social Security number or credit card information with individuals or platforms offering to buy or trade your gift card. If you are required to mail your physical gift card to a buyer or exchange service, ensure the shipping method is secure and offers tracking to monitor delivery.
Keep Detailed Transaction Records
Regardless of whether you sell your gift card online, use a kiosk, or exchange it through an app, maintain a record of all transaction details. This includes screenshots of offers, confirmation emails, and receipts. In case of any disputes or issues with your payout, having comprehensive documentation will be invaluable for resolving the situation efficiently and effectively.
Final Word on Cashing In Gift Cards
Learning how to cash in gift cards effectively opens up avenues to access funds from potentially underutilized gifts. The methods discussed offer varied benefits depending on your priorities—whether you need quick cash, want to maximize the value, or seek flexible options. Always prioritize security, use trusted platforms, and diligently track your transactions to ensure a secure and satisfactory experience when converting your gift cards to cash.
