How Do You Convert Gift Cards Into Cash?

Converting gift cards into cash is primarily achieved by selling or exchanging them on various platforms, though it's important to note that you will almost always receive less than the card's face value. Several avenues exist for this conversion, ranging from online marketplaces to direct peer-to-peer sales.

Primary Methods for Cash Conversion

The most common and effective ways to turn an unwanted gift card into cash involve finding a buyer willing to pay for it, even if at a discount.

Online Gift Card Marketplaces

Online gift card marketplaces are dedicated platforms where you can sell or exchange unwanted gift cards. These third-party sites connect sellers with buyers looking for discounted gift cards.

• Process: You list your gift card (providing details like the brand and balance), and once it sells, you receive payment, typically via direct deposit, PayPal, or sometimes even physical check. The platform usually takes a commission, and the offer you receive is often a percentage of the card's face value.
• Expected Value: You can expect to receive anywhere from 70% to 90% of the gift card's face value, depending on the popularity of the brand and the demand for that specific card. High-demand cards (e.g., major retailers, universal Visa/Mastercard gift cards) generally fetch higher percentages.
• Pros:
  • Convenient and accessible from anywhere.
  • Reach a wide audience of potential buyers.
  • Some platforms verify card balances and offer fraud protection.
• Cons:
  • You receive less than face value.
  • Transaction fees may apply.
  • Payout may not be immediate.
• Important Precaution: When you trade or sell gift cards online, it's crucial to take precautions to avoid fraud. Always use reputable platforms with strong security measures and read reviews before proceeding. Verify the legitimacy of buyers and sellers if transacting directly.

Gift Card Exchange Kiosks

Automated kiosks, sometimes found in grocery stores or shopping malls, offer an instant way to get cash for your gift cards.

• Process: You scan your gift card at the kiosk, and it provides an immediate cash offer. If you accept, the kiosk dispenses cash on the spot.
• Expected Value: While convenient for immediate cash, these kiosks typically offer a lower percentage of the gift card's value compared to online marketplaces, often in the 60-80% range.
• Pros:
  • Instant cash payout.
  • Convenient for cards with smaller balances.
• Cons:
  • Lower payout percentage.
  • Limited availability in some areas.

Selling to Individuals (Friends, Family, or Local Marketplaces)

You can directly sell your gift card to someone you know or list it on local online marketplaces and social media groups.

• Process: You agree on a price with the buyer, which can be slightly higher than what online platforms offer since there are no intermediary fees. You can exchange the card for cash in person or arrange for digital transfer and card details.
• Expected Value: This method can potentially yield a higher percentage of the gift card's value, sometimes up to 95%, especially if sold to a friend or family member who trusts you.
• Pros:
  • Potentially higher return.
  • No platform fees.
  • Immediate cash if transacting in person.
• Cons:
  • Requires finding a willing buyer.
  • Higher risk of fraud if transacting with strangers, requiring careful security measures.
  • Less anonymity.

Convert to Cash by Indirect Means

While not directly converting to cash, these methods leverage the gift card's value for liquidity.

• Purchasing Items for Resale: Use your gift card to buy popular items on sale or at a good price, then resell those items for cash online (e.g., on eBay, Facebook Marketplace).
  • Pros: Can potentially recoup close to face value if you find good deals.
  • Cons: Time-consuming, requires effort to research and sell, and there's no guarantee of sale or profit.
• Paying Bills (for specific card types): Some universal gift cards (like Visa or Mastercard gift cards) can sometimes be used to pay certain bills online, effectively freeing up cash you would have otherwise spent.
  • Pros: Direct way to utilize the value.
  • Cons: Limited to specific types of gift cards and bill payment systems.

Key Factors to Consider

Before attempting to convert your gift card to cash, keep these points in mind:

Expected Value

Always anticipate receiving less than the face value of your gift card. The exact percentage depends on:

• Brand Popularity: Cards for major retailers, popular restaurants, or universal payment networks (Visa, Mastercard) tend to retain more value.
• Demand: Some cards are in higher demand at certain times of the year (e.g., holiday season).
• Balance: Smaller balances might be harder to sell or fetch a lower percentage.

Security and Fraud Prevention

When engaging in online sales or exchanges, vigilance is key.

• Verify Platform Legitimacy: Use well-established and reputable gift card resale platforms. Look for secure payment processing and clear terms of service.
• Protect Card Details: Only share card numbers and PINs through secure channels provided by the platform. Be wary of requests for this information via email or unsecured messages.
• Proof of Purchase: Keep your original gift card receipt as it may be requested for verification by some platforms.

Speed of Payout

Consider how quickly you need the cash.

• Instant Cash: Kiosks offer immediate cash, but at a lower percentage.
• Faster Online Payouts: Some online platforms offer expedited processing for a fee or for certain types of cards.
• Standard Online Payouts: Most online sales involve a waiting period for verification and processing.

Comparison of Conversion Methods

Converting gift cards to cash is a viable option for unwanted cards, but it requires understanding the methods, managing expectations regarding value, and prioritizing security to avoid potential scams.