Gift cards, often given as presents, can sometimes miss the mark. While the thought is appreciated, you might find yourself holding onto a gift card for a store you rarely visit or for products you don’t need. Instead of letting these cards gather dust, you can easily convert these unwanted Gift Cards To Cash. This guide will walk you through the best methods to turn gift cards to cash, ensuring you get the most value while navigating the process smoothly.
Understanding the Gift Card to Cash Market
The desire to exchange gift cards for cash is common. Life changes, preferences shift, and sometimes a prepaid card simply doesn’t align with your current needs. Fortunately, a robust market exists to facilitate this exchange, offering various platforms and services designed to help you liquidate your gift card balances.
Why Sell Gift Cards for Cash?
Several reasons might lead you to sell your gift cards for cash:
- Unwanted Retailer: The gift card might be for a store you don’t frequent or one that doesn’t have convenient locations for you.
- Financial Needs: Cash provides flexibility. You might prefer to use the value of the gift card for bills, groceries, or other essential expenses rather than specific retail items.
- Personal Preferences: You might simply prefer cash over being restricted to a particular store’s offerings. Your taste in products or services might not align with the gift card’s retailer.
- Avoiding Waste: Unused gift cards can be forgotten and eventually lose value (though federal regulations minimize expiration dates and fees, inactivity fees can sometimes apply after a long period). Selling them ensures the value is utilized.
Popular Platforms for Selling Gift Cards
The digital age has made selling gift cards easier than ever. Several reputable online platforms act as intermediaries, connecting sellers with buyers. These platforms generally fall into two categories: marketplaces and direct buyers. Marketplaces allow you to list your gift card and sell it to individual buyers, while direct buyers purchase the gift card directly from you.
Top Platforms to Convert Gift Cards to Cash
Navigating the options to sell gift cards for cash can be overwhelming. Here’s a closer look at some of the leading platforms, detailing their processes, fees, and benefits.
GCX (Raise) – Marketplace Approach
GCX, a subsidiary of Raise, operates as a prominent online marketplace for gift cards. Think of it as eBay, but specifically for gift cards. With GCX, you are in control of setting the selling price, and you can observe what discounts others are offering for similar gift cards to gauge market value.
How it Works:
- Listing Your Card: You create a listing for your gift card, specifying the retailer, card value, and your desired selling price (discount).
- Marketplace Exposure: Your listing becomes visible to potential buyers on the GCX platform.
- Sale and Payout: Once a buyer purchases your gift card, GCX handles the transaction. You then receive payment, minus GCX’s fees.
Key Features:
- Control Over Pricing: You decide the discount you’re willing to offer, balancing speed of sale with return.
- Reputable Platform: Raise and GCX are well-established names in the gift card resale market, lending credibility and security to transactions.
- Payout Methods: GCX offers payouts via ACH direct deposit and PayPal, providing convenient options to access your funds.
Fees: GCX typically charges a 15% fee on the selling price. This means for a $100 gift card sold for $85 (a 15% discount), you would receive approximately $72.25 after GCX’s fee. While the fee is relatively higher, the marketplace model and platform reputation can justify it for many sellers, especially first-timers seeking a secure environment.
CardCash – Direct Purchase Model
CardCash offers a different approach. Instead of acting as a marketplace, CardCash directly buys gift cards from you. This eliminates the waiting period associated with marketplace selling.
How it Works:
- Get an Offer: You enter the gift card details (retailer and balance) on the CardCash website. CardCash instantly provides an offer, representing the cash value they are willing to pay.
- Card Verification: If you accept the offer, you submit your gift card information for verification.
- Payment: Upon successful verification, CardCash processes your payment.
Key Features:
- Speed and Convenience: The direct purchase model ensures a faster transaction. You receive payment soon after verification, avoiding the uncertainty of waiting for a buyer.
- Up to 92% Cash Value: CardCash claims to offer up to 92% of the gift card’s value, though the actual percentage varies significantly depending on the retailer and current demand.
- Wide Acceptance: CardCash generally accepts a broad range of gift cards, increasing the likelihood of being able to sell even less common store cards.
- Trade-in Option: CardCash allows you to trade your gift cards for other gift cards (like Amazon, Airbnb, Chewy) and potentially receive up to 11% more value than a cash payout. This can be a good middle-ground if you prefer a specific retailer over cash.
Offer Variability: It’s important to note that CardCash’s offers fluctuate. For example, a $100 Walmart gift card might fetch a higher percentage than an Apple Store or Microsoft gift card, reflecting market demand and CardCash’s inventory needs. Always check the offer for your specific gift card to understand the return.
Comparing GCX and CardCash
| Feature | GCX (Raise) | CardCash |
|---|---|---|
| Model | Marketplace | Direct Buyer |
| Pricing Control | Seller sets price | CardCash offers a price |
| Payout Speed | Varies (depends on sale) | Faster (after verification) |
| Fees/Discount | ~15% fee (on selling price) | Variable discount (up to 8-25% or more) |
| Return | Potentially higher if priced competitively | Generally lower, but guaranteed offer |
| Convenience | Requires listing and waiting for a buyer | Quicker, direct transaction |
| Best For | Maximizing return, less urgent cash need | Speed, convenience, selling less common cards |
Other Options
While GCX and CardCash are leading platforms, other options exist:
- Prepaid2Cash: Primarily focuses on prepaid cards (Visa, Mastercard, Amex, Discover) but also accepts gift cards from major retailers. Similar to CardCash, it offers direct purchase. Check their website for accepted brands and rates.
- Local Gift Card Kiosks/Stores: Some physical locations may offer to buy gift cards for cash, though these are less common and rates may be less competitive.
- Online Classifieds (Proceed with Caution): Platforms like Craigslist or Facebook Marketplace could be used to sell gift cards directly to individuals. However, this method carries higher risks of fraud and requires careful vetting of buyers. Exercise extreme caution and prioritize secure payment methods if considering this route.
Platforms to Avoid (No Longer Options):
- Coinstar Exchange: Coinstar machines no longer offer gift card exchange services.
- Cash App: Cash App does not directly buy gift cards.
Maximizing Your Return When Selling Gift Cards
Getting the best possible return when converting gift cards to cash involves understanding the market and employing smart selling strategies.
Factors Affecting Gift Card Value
Several factors influence the cash value you’ll receive for your gift card:
- Retailer Popularity: Gift cards from highly popular and versatile retailers (e.g., Amazon, Walmart, Target) generally command higher resale values and sell more quickly.
- Card Balance: Higher balance cards might attract slightly better percentage returns in some cases, but this isn’t always guaranteed.
- Platform Demand: The specific platform’s current demand for a particular retailer’s gift card will affect the offer price. Platforms adjust offers based on their inventory and buyer demand.
- Discount Rate: The discount you (or the platform) applies directly impacts the cash you receive. Higher discounts lead to quicker sales but lower returns.
Tips for Selling Gift Cards Successfully
- Compare Offers: Always check offers from multiple platforms (GCX, CardCash, Prepaid2Cash) to find the best rate for your specific gift card. Rates can vary significantly.
- Consider Marketplace vs. Direct Buy: Decide whether you prioritize speed (direct buy like CardCash) or potential for a slightly higher return (marketplace like GCX).
- Check Fees: Understand the fees charged by each platform to accurately calculate your net return.
- Read Reviews: Research platform reviews to gauge user experiences, payment reliability, and customer service.
- Secure Transactions: Use reputable platforms with secure websites (HTTPS) and established payment processes.
- Be Realistic: Accept that you won’t receive 100% cash value. Expect discounts ranging from 5% to 25% or more, depending on the factors mentioned above.
- Sell Sooner Rather Than Later: Gift card values can fluctuate. Selling sooner rather than holding onto them indefinitely is generally advisable.
Buying Discounted Gift Cards: A Smart Saving Strategy
The gift card resale market isn’t just for sellers. It’s also a savvy place to buy discounted gift cards for retailers you already shop at. You can essentially purchase store credit at a reduced price, leading to savings on your everyday spending.
How to Buy Discounted Gift Cards
Platforms like GCX and CardCash also facilitate the purchase of discounted gift cards. You can browse their inventory for gift cards from your favorite stores and buy them at below face value.
Example: If you regularly shop at a retailer, buying a discounted gift card with a 10% or 15% discount means you save that percentage on every purchase you make using that card.
Using Credit Cards for Extra Rewards
When buying discounted gift cards online, consider using a credit card that maximizes your rewards on everyday purchases. While gift card marketplace purchases might not fall into bonus categories like travel or dining, using a general cash-back credit card ensures you earn rewards on these transactions as well.
Recommended Credit Cards for Everyday Spending (as mentioned in the original article):
- Citi Double Cash® Card: Offers 2% cash back on all purchases (1% when you buy, 1% when you pay).
- Chase Freedom Unlimited®: Offers 1.5% cash back on all purchases, plus bonus categories.
- Wells Fargo Active Cash® Card: Offers 2% cash rewards on purchases.
Using these cards adds another layer of savings to your discounted gift card purchases, effectively compounding your financial benefits.
Conclusion
Turning unwanted gift cards into cash is a practical way to reclaim value from gifts that don’t quite fit your needs. Platforms like GCX and CardCash offer convenient and relatively secure avenues for this exchange, each with its own pros and cons. By comparing options, understanding fees, and employing smart selling strategies, you can optimize your return. Conversely, exploring discounted gift card purchases can be a strategic move to save money on your regular spending. Whether you are selling or buying, navigating the gift card marketplace wisely can lead to significant financial advantages.
