How to redeem a gift card for what it was meant to buy

The most straightforward way to use a gift card is to spend it at the retailer or restaurant that issued it. You present the card at checkout — either in person, online, or by phone — and the balance is deducted from your purchase. If your purchase costs less than the card's balance, the remaining amount stays on the card. If it costs more, you pay the difference with another payment method.

The process is the same whether the card is physical plastic or a digital code sent to your email. At an in-person register, hand the card to the cashier or insert it into the card reader yourself. Online, enter the card number and PIN (if there is one) during checkout, usually in a section labeled "gift card" or "promotional code" rather than in the credit card field. By phone, read the number to a customer service representative.

One common confusion point: a gift card balance does not expire when ready, but many retailers do impose expiration dates — typically three to five years from the date of purchase or last use. Check the card's terms before assuming you have unlimited time. Some states legally require longer expiration periods or allow you to cash out the remaining balance after a certain period, so your location matters.

Key Takeaways

  • Redeeming a gift card at the original retailer is free and straightforward: present it at checkout in person, online, or by phone, and the balance is deducted from your purchase.
  • Most gift cards have expiration dates ranging from three to five years, and some states require retailers to cash out small remaining balances or extend expiration indefinitely.
  • Third-party resale sites like Raise and CardCash let you sell an unwanted gift card for cash, though you typically receive 70 to 90 percent of the card's face value.
  • Some retailers allow you to transfer a gift card balance to another person, but the process and fees vary widely — contact the retailer directly to learn their policy.
  • Cashing out a gift card through a bank or payment app is possible but limited: some cards can be linked to PayPal or loaded onto a prepaid debit card, though not all retailers permit this.

Selling your gift card for cash through resale platforms

If you do not want to spend the card at its original retailer, you can sell it to a third party for cash. The most common platforms are Raise, CardCash, and Decluttr. These sites connect people who want to sell unwanted gift cards with buyers looking for discounts.

Here is how the process works: you list the card on the platform (providing the retailer, balance, and expiration date), set a price or accept the site's offer, and once a buyer purchases it, you provide the card number and PIN. The platform holds your payment in escrow until the buyer confirms the card works, then deposits the money into your bank account. The whole process typically takes three to seven business days.

You will not receive the full face value. Most platforms pay 70 to 90 percent of the card's balance, depending on the retailer's popularity and current demand. A card to a major chain like Target or Amazon typically sells closer to 90 percent, while a card to a smaller or regional retailer might sell for 70 to 80 percent. The platform also takes a commission — usually 1 to 2 percent of the sale price — though some sites waive this for sellers.

One important safeguard: never send the card number before the buyer has confirmed they received it and the card works. Reputable platforms use escrow specifically to prevent this kind of fraud. If a site asks you to send the card details upfront without escrow protection, do not use it.

Transferring a gift card balance to someone else

Some retailers allow you to transfer a gift card balance to another person, but the rules and processes vary significantly. Major retailers like Target, Walmart, and Amazon typically allow transfers through their websites or apps, though some charge a small fee (usually $1 to $2) or require you to create a new digital card in the recipient's name.

To transfer, log into your account on the retailer's website, find the gift card management section, and look for an option to "transfer" or "send" the balance. You will need the recipient's email address or phone number. Some retailers send the recipient a new digital card code; others let you transfer the balance directly to their existing account.

Not all retailers offer this option. Smaller chains, restaurants, and regional stores often do not have the infrastructure to process transfers. Your best approach is to contact the retailer's customer service directly — call the number on the back of the card or visit their website's help section — and ask whether transfers are possible and what the process is.

Converting a gift card to cash through payment apps and banks

Some gift cards can be linked to payment apps like PayPal or loaded onto prepaid debit cards, which gives you access to the balance as cash. However, this option is limited and depends on both the card issuer and the payment app.

PayPal allows you to link certain Visa and Mastercard gift cards to your account, which lets you spend the balance anywhere PayPal is accepted. To do this, log into PayPal, go to your wallet, select "Link a card," and enter the gift card details. PayPal treats it like any other card on file. This works only if the gift card is a Visa or Mastercard branded card, not a store-specific card like a Target or Best Buy card.

Some prepaid debit card services, like NetSpend or Chime, allow you to load a gift card balance onto the prepaid card, which you can then withdraw as cash from an ATM. The process varies by service, but typically involves entering the gift card number in the app or calling customer service. Fees may explore — some services charge a small transfer fee or require a minimum balance.

This route is not available for most store-specific gift cards. Retailers like Target, Best Buy, and Starbucks do not allow direct transfers to payment apps or prepaid cards. If you have a store-specific card and need cash, selling it through a resale platform is usually your only option.

What happens to unused gift card balances

If a gift card expires or you never use it, what happens to the money depends on state law and the retailer's policy. In most states, retailers must either extend the expiration date indefinitely, allow you to cash out the remaining balance, or donate unclaimed balances to the state after a set period (usually five to seven years).

Some states have stronger protections. California, for example, requires retailers to cash out any remaining balance under $5 upon request, and New York requires cash-out for any balance after five years. Other states have no specific protections, so the retailer's terms control.

If you have an expired or nearly expired card, contact the retailer's customer service and ask about your options. Many retailers will extend expiration dates or process a refund if you request it, even if they are not legally required to do so. Having the original receipt or proof of purchase helps, but is not always necessary.

Avoiding common mistakes when redeeming or selling gift cards

The most frequent mistake is not checking the expiration date before the card expires. Set a phone reminder when you receive a gift card, or write the date on the card itself. If you are selling the card, the expiration date affects its resale value — cards expiring soon sell for less, so do not wait until the last moment.

Another common error is not reading the fine print on store-specific cards. Some cards cannot be used for certain items (like alcohol or gift cards themselves), and some retailers charge monthly inactivity fees if the card sits unused for a long period. Check the card's terms or the retailer's website before assuming you can use it however you want.

When selling through a resale platform, never share the card number or PIN with anyone except through the platform's find process. Scammers sometimes pose as buyers on unmoderated sites. Stick to established platforms with buyer and seller protections, and always use escrow.

Finally, do not assume a gift card is the same as cash. The balance is tied to that specific retailer or card network, and you cannot withdraw it as cash unless the card is a Visa or Mastercard branded card or you sell it. If you need when ready cash and have a store-specific card, a resale platform is your fastest option.

Frequently Asked Questions

Can I use a gift card after it expires?

It depends on your state and the retailer's policy. Many states require retailers to honor expired cards or cash out the balance, but others do not. Contact the retailer directly with your card number and ask whether they will process a transaction or refund. Having proof of purchase strengthens your case.

What if I lost the physical gift card but remember the number?

Contact the retailer's customer service with the card number and any other details you remember (purchase date, approximate balance). They can look up the card in their system and may issue a replacement or process a refund if the card has not been used. This is easier if you have the original receipt.

Do I have to pay taxes on gift card sales?

If you sell a gift card for less than its face value, you generally do not owe taxes on the loss. If you somehow sell it for more than face value (rare), the gain may be taxable. For most people, selling a gift card through a resale platform is not a taxable event. Consult a tax professional if you regularly sell gift cards in large quantities.

Can I combine balances from multiple gift cards?

Most retailers do not allow you to combine balances from separate cards into one. However, you can use multiple cards in a single transaction — present one card, pay the remaining balance with another, and so on. Some retailers allow you to add a gift card balance to your account, which you can then spend in multiple transactions.

Is it safe to buy gift cards from resale platforms?

Established platforms like Raise and CardCash have buyer protections and verify cards before releasing payment to sellers, so the risk is low. However, always buy from the platform's official website, never from third-party marketplaces, and check the card balance when ready after purchase. If the card does not work, the platform will refund you.