How to Convert Gift Cards Into Cash

 

Many credit card issuers sell gift cards that are good anywhere the network accepts them. These are often reloadable, too. Gift cards are not considered to be cash advances, but they don’t come with some of the same consumer protections as credit cards do. 상품권 깡

Don’t let your gift cards end up in the junk drawer. Here are some tips to get the most out of them.
1. Sell it to a friend or family member

If you have a gift card you don’t want, try selling it to a friend or family member. For example, if you have a Home Depot gift card with a few bucks left on it and you don’t need to buy any tools, a relative might be willing to take it off your hands. It’s an easier option than trying to sell the card online.

Gift cards can also be sold at mall kiosks, in some grocery stores and at select service centers. The amount you get will vary, but it’s generally about 80% to 92% of the card’s value. Payment options range from cash to a check in the mail or to a different store’s gift card.

If none of these options work for you, consider giving your unwanted gift card to a charity. There are a few websites that specialize in accepting gift cards and donating them to various nonprofits. For instance, CardCash will donate your unwanted gift card to St. Jude Children’s Research Hospital, while CharityChoice takes gift cards and turns them into cash donations that are then given to people in need.

You can also just use the gift card to pay down your credit card debt. Although this isn’t the most fun way to spend a gift card, it can be a smart and easy way to save money. Just be sure to keep track of your balance and make only small purchases to avoid going over the limit. You should also consider transferring the balance to a prepaid card with low interest rates. That way, you can avoid accumulating interest charges and potentially getting a high-interest payday loan.
2. Liquidate it

When you’re gifted a gift card that you never use, it can be difficult to decide what to do with it. While it’s tempting to buy more stuff using the gift card, doing so can drain its value and result in a credit card debt trap. Instead, try one of these methods to convert your gift cards into cash and use them for items you actually need or want.

Many retailers, including Walmart and some grocery stores, offer gift card exchange kiosks where you can turn your unwanted gift cards into cold, hard cash. These kiosks often take a small cut of the proceeds, but they’re an easy and convenient way to get rid of an unwanted Visa gift card or other brand-specific gift card.

You can also sell your unwanted gift cards online at sites like Raise or CardCash. These sites can turn prepaid cards into money you can spend on anything — but they typically charge a fee to do so. Other options include selling your card to a friend or family member for a discounted price, or transferring the funds to a digital wallet like PayPal or Venmo for flexible online usage.

Some consumers get creative and buy low-cost items with their gift cards to flip them for more money, but this can be risky and time consuming. It can also be a red flag to your card issuer, which could claw back rewards or, in the worst case, close your account. In addition, it’s generally a bad idea to use gift cards to hit spending thresholds for credit card sign-up bonuses. That practice is known as manufactured spending, and some credit card issuers explicitly forbid it in their terms of service.
3. Link it to a brokerage account

Purchasing gift cards is sometimes a smart way to earn credit card rewards. For example, if you have a credit card that offers 5% back on categories like Walmart and Amazon, or has a bonus cash-back category at certain restaurants, buying gift cards with that credit card can allow you to “expand” the category by using them as payment for items in the store or online. However, you’ll want to make sure you understand the terms and conditions of your card. Some issuers explicitly exclude gift cards or “cash-like transactions” from earning rewards.

Alternatively, you can sell your gift cards online to third-party companies such as Raise or CardCash. These websites will pay you for your gift cards via PayPal or Venmo. However, the returns for gift cards can vary widely — for example, a $100 gift card at Apple may yield only $86, while a $50 at Walmart might get you $102.

You can also find deals on your unwanted gift cards by searching for specific merchants and products on sites such as eBay or Craigslist. Just be wary of scams on these sites, as they can steal your gift card numbers and use them to make fraudulent purchases.

You can also turn your gift cards into money orders at some retail stores and grocery chains, including Walmart. You can then deposit these money orders into a bank account, or cash them out at a participating financial institution. The process can be a little slower than selling the card directly, but it’s often a safer option and lets you avoid commissions. NerdWallet has more tips for using gift cards to maximize your rewards.
4. Offer it to your co-workers

In the workplace, gift cards can be a good way to get the team together for something other than brainstorming new marketing campaigns or hashing out the recent production outage. But, if co-workers have different budgets, group gifting can create a lot of tension and feelings of exclusion. The best thing to do is be clear with your co-workers from the start. If you can’t contribute to the group gift, let everyone know. If you’re able to contribute, be consistent in your contribution amounts. This will prevent other colleagues from feeling left out and avoid feelings of resentment or jealousy.

Also, be aware that buying a gift card with your credit card may trigger fees and rewards breakage. Many credit card issuers prohibit accumulating rewards on “cash-like transactions,” including the purchase of gift cards. In some cases, this may even include reloadable gift cards like Visa, MasterCard and American Express.

This could be a big problem if you’re trying to hit a quarterly spending threshold for a credit card bonus or a limited-time Amex Offer. In these cases, buying several hundred dollars worth of gift cards in order to meet a spending target could land you in hot water with your credit card issuer who may then claw back the earned rewards or even shut down your account.

Alternatively, some companies and apps allow you to sell your gift card for cash, but this method tends to net you a smaller amount due to higher merchant transaction fees. It’s worth checking out a few options and finding the one that works for you.
5. Squeeze out every last drop

If you have a gift card that you can’t use up, there are ways to get some cash back. For example, some credit cards let you buy gift cards for up to 5 percent off. You can also try to find sales that can help you stretch a gift card, or use it toward something you need but haven’t wanted to spend the money on.

You can also sell the gift cards for cash on apps or websites. Some services, like CardCash, offer higher returns than others (though the amounts vary widely, with Walmart cards getting up to 92% of their cash value while Microsoft and Apple card balances are usually less). You can also use gift cards to pay your bills. Many grocery stores and drug stores carry large gift card sections and have a “cash back” option where you can turn your cards into cash instantly.

Some states require retailers to give customers cash back when a gift card balance drops below the minimum. If your state doesn’t have that law, you can ask a store or restaurant to do so. A smile and a polite request go a long way, but it’s worth checking your state’s laws first to make sure there are no restrictions.

Another possibility is to try using a gift card at a sister store or a chain with similar brands. For instance, a Gap-branded gift card can be used at Old Navy and Banana Republic, while an Olive Garden gift card can be used at Yard House and LongHorn Steakhouse, both part of Darden Restaurants. Another way to use gift cards is to donate them to charity. Some retailers will pool gift cards and give them to nonprofits, while others accept them as donations in-person or online.