How to cash out a gift card
A gift card is a prepaid card issued by retailers, financial institutions, or businesses that allows you to make purchases at a specific store or use it wherever certain payment networks, like Visa or Mastercard, are accepted. They come in two main types: closed-loop, which are limited to a specific store or chain, and open-loop, which are more flexible.
While gift cards offer convenience and flexibility, they aren’t always useful for everyone. Some prefer having cash to pay bills or meet urgent financial needs, while others simply want to avoid cluttering their wallets with unused cards. This article provides a breakdown of various methods to cash out a gift card and the key considerations to keep in mind to ensure a smooth and safe transaction.
Methods For Cashing Out Gift Cards
Each method discussed below have varying degrees of convenience, payout, and effort involved. Choosing the right method depends on the type of gift card, your need for cash, and how much value you are willing to sacrifice in exchange for liquidity.
1. Sell Or Exchange Gift Cards Online
This is one of the most popular and effective ways to convert gift cards into cash, providing flexibility and often a higher payout than other methods. Numerous platforms, such as CardCash, Raise, and Gift Card Granny, facilitate this process by connecting sellers with buyers looking for discounted gift cards.
Each platform offers different payout rates, which can range from 70% to 92% of the card’s face value, depending on the retailer and the demand for that particular brand. For example, gift cards for popular retailers like Amazon or Walmart tend to fetch higher returns, while those for niche stores may yield lower offers. Though this option doesn’t offer instant cash, it allows you to reach a broader audience, increasing your chances of securing a better payout.
Some platforms also allow you to swap a card for another one. For example, you might trade a gift card for a store you rarely visit for one to a store you shop at frequently. This option gives you greater control over the outcome and can be particularly useful if you don’t need immediate cash but want more spending options.
Keep in mind that some websites may charge a transaction fee, and the payout time can range from a few days to a week, depending on the platform’s policies.
2. Use Gift Card Kiosks
Gift card kiosks are physical machines often found in grocery stores, shopping malls, or big-box retailers. If you need immediate cash, this might be the right option for you.
To use a kiosk, simply insert your gift card, and the machine will assess its balance before providing an instant cash offer. Kiosk payouts are usually lower than what you would receive through selling online, often ranging from 50% to 70% of the card’s value, depending on the retailer. If you accept the offer, the machine will print a voucher, which you can then take to the store’s customer service desk to receive your cash.
It’s worth noting that kiosk offers are often non-negotiable, and the machines may not accept all types of gift cards, particularly those from smaller or less popular retailers. However, for major brands, kiosks provide a fast and hassle-free way to convert gift cards into cash.
3. Buy Then Resell Items
If you prefer a more hands-on approach, using your gift card to buy items and reselling them is another creative way to convert the card into cash. This strategy is especially effective if your gift card is for a store that sells popular or high-demand items, such as electronics, fashion, or home goods. By purchasing items that are easy to resell, you can recover most, if not all, of the gift card’s value, and in some cases, even turn a small profit.
To use this method, identify products that hold their value well and are in high demand. For example, smartphones, laptops, gaming consoles, and brand-name clothing often have strong resale markets. After purchasing the items with your gift card, list them for sale on platforms like eBay, Craigslist, or Facebook Marketplace. Specialized sites such as Swappa can also be useful if you’re selling electronics.
The key is researching the resale market beforehand to ensure the items you buy can be quickly resold at a competitive price. While this approach requires more effort and time, it allows you to extract the maximum value from your gift card, especially for open-loop cards.
4. Claim Remaining Balances
Several states, including California, Colorado, Maine, and Washington have enacted consumer-friendly regulations that require retailers to cash out gift cards if the remaining balance falls below a certain threshold, typically $5 to $10. For example, if you’ve already used most of your gift card and are left with a small balance that isn’t enough to buy anything, you can request cash from the retailer directly.
The process is simple: visit the store, present your gift card, and ask for the balance to be issued in cash. However, this only works if your state has such a law in place, so it’s crucial to check local regulations first. Although the payout is small, it can still help you reclaim value that might otherwise go unused.
Additionally, this method avoids the fees and commissions often associated with third-party selling platforms or kiosks.
Reminders For Cashing Out
Check Gift Card Balance First
Before proceeding with any cash-out method, it’s essential to check the balance on your gift card. You can do this by visiting the retailer’s website, calling the customer service number on the back of the card, or using an online gift card balance checker.
Knowing the exact balance will help you avoid transaction errors and ensure you’re getting the correct payout.
Stick To Trusted Platforms
When selling or exchanging gift cards online, avoid using unknown websites or marketplaces, as they may pose risks such as identity theft or scams. Reputable sites usually have clear policies, good customer reviews, and reliable customer service, which adds a layer of protection.
Check Expiration And Other Restrictions
Some gift cards may come with expiration dates or geographic and merchant-specific limitations. These factors can reduce the card’s value or make it harder to sell or trade.
Before cashing out, always check for any terms that could affect the usability or resale potential of your gift card. Being aware of these conditions will help you get the most out of your card.
Protect Your Information
Always safeguard your personal and financial information when cashing out gift cards. Never provide sensitive information like your Social Security number or credit card details to anyone offering to buy or trade your gift card.
If you are mailing your card to a buyer or exchange service, ensure that the process is secure and track the shipment.
Keep Transaction Details
Whether you’re selling your gift card online, using a kiosk, or exchanging cards through an app, it’s important to keep a record of the transaction. This includes screenshots, confirmation emails, and receipts.
In the event of a dispute or issue with the payout, having documentation will help resolve the situation quickly.
Final Thoughts
Cashing out a gift card can provide you with valuable funds and ensure you get the most out of a gift that might otherwise go unused. The cash-out methods discussed offer unique advantages depending on your needs—whether you’re looking for immediate cash, maximum value, or flexibility. Always remember to protect your information, use trusted platforms, and keep track of your transactions to ensure a smooth and secure cash-out process.
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