How to Cash Out Gift Cards With Credit Cards

Gift cards are available in many places, from retailers and supermarkets to websites specializing in gift card resales. However, credit card companies sometimes code these purchases as cash advances or may not allow you to earn rewards on them at all.

For open-loop credit cards, cashing out gift cards can be a great way to redeem rewards. But be careful not to abuse the practice and pay interest on your gift card purchases.
Earning Points or Cash Back

A credit card can help you earn cash back or points on your purchases, depending on the type of card and its rewards program. You can use gift cards to take advantage of these offers, but it’s important to remember that the purchase is still a credit transaction and you will earn cash back or points. If you’re going to purchase a gift card with your credit card, you should only do so for items that are a good value.

The ability to buy gift cards with a credit card also allows you to maximize your earning potential at specific merchants that don’t accept cash or debit payments. For example, if you’re interested in purchasing an appliance that will cost $500 or more, you can purchase a $500 Best Buy gift card with your credit card and then pay for the item with the balance on your credit card. This will allow you to earn the maximum amount of credit card rewards on the purchase and avoid paying interest.

You can also use your credit card to buy gift cards and then sell them for cash. Some online marketplaces such as Raise and Giftcard Granny offer this service, but you’ll usually need to pay a fee to do so. These fees vary, but they typically run about 2% of the total gift card value. You may also need to offer a discount on the gift card price to encourage buyers.

It’s also worth noting that some credit card issuers prohibit gift cards from being used to receive cash back. Some cards require that you purchase gift cards in increments of $25 to earn a rewards bonus, while others have rules that only apply when you use the card as a form of payment. You should always read the fine print of your card to ensure that it’s clear on this point.

Many credit card reward programs have options that let you redeem your points for gift cards, but the redemption values of these options can be less than the cash-back value on a typical credit card. If you’re considering a new credit card that includes this option, it’s wise to carefully consider your options to find the one that will give you the most value.
Purchasing for Future Spending

When it comes to gift cards, you aren’t stuck with just one way of using them. For example, you can redeem a card and add the balance to an online account to use for future purchases at an eligible merchant. This is how Amazon and iTunes work, for instance.

Another savvy gift card strategy is to buy items on sale and then flip them for cash. This is a little more labor-intensive but can still net you more than the original value of the card. You can also try selling items at a local yard sale or flea market to make money from your gift card.

For even more flexibility, you can convert a gift card to cash through online services like PayPal or Venmo. These services typically don’t charge a fee to transfer the balance from your gift card to a bank account. However, you should check out the terms and conditions for each site to make sure that it’s safe to use your credit card with the service.

Some sites only accept certain types of gift cards, or only sell them for a fraction of their initial value. To avoid frustration, you may want to consider a website like CardCash, which is more indiscriminate in which types of cards it will accept. However, it still follows standard practices by refusing to sell cards with expiration dates or those that can only be used at specific locations.

Alternatively, you can turn a gift card into cash by linking it to a brokerage account and investing the funds. This is a great option for those who don’t need the money right away but would rather have it invested to grow in value over time.

Steffa is a Certified Financial Education Instructor (CFEI) who teaches families how to get their finances in order through operant conditioning and positive behavioral change training. She uses her 12-year background in personal finance to help people find effective motivators for changing harmful money behaviors. She is the founder of Money Tamer, where she teaches others how to achieve financial freedom through budgeting and debt repayment strategies.
Paying Down Credit Card Debt

If you have a gift card that is sitting in your junk drawer, there are some options for cashing it out. You can get the money and transfer it to your bank account or use it to pay for an online purchase. In most cases, there are no fees to do this. However, you may have to wait a few days for the transfer to complete.

Gift cards can be a great way to give a gift or save on a purchase, but they can also leave you in a tricky financial spot. If you spend more than the amount on the card, then you’ll have to come up with the remaining balance. This is common as 59% of consumers report that they will spend more than the value of their gift cards, according to a survey from Blackhawk Network. 콘텐츠이용료 상품권구매

A credit card that gives you rewards for gift cards can be a good option for those who have plenty of gift cards in their junk drawer. The key is to find a card that offers a high level of rewards, including a sign-up bonus and ongoing perks. The Chase Freedom Unlimited card, for example, offers 1.5% cash back on all non-bonus spending and the ability to earn even more with the purchase of gift cards.

Other cards offer a higher level of rewards for gift card purchases, such as the Citi Double Cash Card, which earns 2% cash back on all qualifying spending and 1.5% after you pay your credit card bill. However, if you don’t have the right credit card, purchasing gift cards with your credit card can end up costing you in the long run through interest charges and transaction fees.

In addition, when you buy gift cards with a credit card, the card issuer will often count it as a cash advance. This can add up and can significantly increase the number of dollars you pay in interest if you’re not careful. To avoid this, you can ask the retailer if they accept gift cards as a form of payment, or consider choosing a card that doesn’t charge for cash advances.
Buying a Money Order

Many banks offer money orders as part of their prepaid payment options. Money orders act a little like checks and are a safe paper form of payments that’s backed by the institution that issues it. You can purchase a money order at some post offices, banking kiosks and some general stores. You can cash the money order in person at most locations, or you can send it to someone – locally or internationally. Money orders typically cost a little more than the amount of the purchase and may come with extra fees.

The easiest way to convert gift cards to cash is by using a digital wallet, such as Paypal or Venmo. With both of these services, you can transfer a gift card balance directly to your bank account. This method is usually quick and easy, but it doesn’t always give you the highest return on your credit card rewards. In addition, the transfer fees may eat into the balance of your card.

You can also try to sell your gift card online to a third party that will buy it for cash. Some popular sites, such as CardCash, offer higher returns on some gift cards than others, though the exact percentages vary from one retailer to the next. For example, a $100 Walmart gift card will yield about $90 when sold to CardCash.

Another option for turning gift cards into cash is to use them as a form of payment at a merchant that accepts Visa debit cards. This will help you avoid paying interest on your card balance if you make a large purchase. However, keep in mind that the transaction will still count as a cash advance and may trigger fees on your credit card.

You can sometimes also convert gift cards to cash by bringing them to your bank or financial institution. This can be a convenient option when you need to pay bills or make large purchases, but it’s important to check the rules and regulations of your bank before doing so. For example, some banks prohibit the purchase of gift cards using credit cards in an attempt to mitigate fraud risk. If you’re considering this option, it’s best to keep your purchases under $200 if possible.