The world has gone digital, wherein you buy and pay for services online. Also, you can transfer the money in your prepaid gift card to your bank account making it safer and easier to use.
A lot of people using gift cards find it difficult to transfer money from their gift card to their bank account.
But the first step to take is to check if your gift card allows you to transfer funds to your bank account.
After completing this step, you are transferring money from your prepaid gift card to your bank account for easy usage.
Let’s see a little overview of gift cards.
According to Investopedia, a gift card is a prepaid debit card that contains a specific amount of money available for various purchases.
Gift cards are prepaid debit cards loaded with funds for future use. In some situations, they can be used to pay for a portion of the purchase with cash, debit, or credit used to balance the expense.
Now that you have gotten the idea of what a gift card is, read further to know the steps to take on how to transfer money from a gift card to a bank account.
The table of contents provided below will give you an overview.
Table of contents
- Can You Transfer Money From Gift Card To Bank Account?
- How Much Does It Cost To Transfer Money From Gift Card To Bank Account?
- How Long Does It Take To Transfer Funds From Gift Card To Bank Account?
- Is There A Transfer Limit On Gift Card?
- Step On How To Transfer Money From Gift Card to Bank Account?
Can You Transfer Money From Gift Card To Bank Account?
Of course, you can transfer money from most prepaid gift cards to your bank account using CardCash.
Some gift cards are disposable and can only be used until the balance reaches zero (0) while most prepaid cards are reloadable and can be used forever.
Thankfully, there is one proven way to transfer money from your gift card to your bank account.
You can use mobile payment services like CardCash (by PayPal) to transfer money from your gift card or prepaid to your bank account.
But the thing is, it’s more expensive than just using a gift card or prepaid card to buy items. So make sure it’s the cash value you want from the gift card.
How Much Does It Cost To Transfer Money From Gift Card To Bank Account?
There are several options for transfer which are either by downloading a square reader or using MoneyGram.
You will pay based on the amount you transfer from your gift card to your bank account for a fee of less than $200. MoneyGram charges you a base fee of $1.99
While for amounts above $200, it charges $1.99 + 1% of the transferred amount. For example, if you spend $500, the fee will be $1.99 + $5, for a total of $6.99.
For the second option, If you have a Square reader, you can swipe the card like any other card. If you don’t have one, you can get a basic magstripe reader free at signup.
After signing up, you will pay a fee of 2.75 percent of each swipe, so which will cut into your total.
This is the easiest way to transfer funds, especially if the square reader is connected to your bank account.
But if you don’t have a Square reader, you can still download the app and sign up, but you’ll pay 3.75 percent if you enter the card information manually.
How Long Does It Take To Transfer Funds From Gift Card To Bank Account?
The longitude of a transaction depends on your bank. Some transfers can be completed within a few hours or on the same day.
For most banks, it usually takes a few business days to see the money in your account.
After that, receiving the money in your account can take another 2 business days.
But if you use MoneyGram, the money will arrive in your account within the same day. Even new accounts take less than a day to be verified.
Is There A Transfer Limit On Gift Cards?
Yes, there is a transfer limit based on the U.S. government’s legal regulations concerning limitations on gift card purchasing and transferring.
- The maximum amount that can be purchased by a single person across multiple gift cards is $10,000
- The maximum amount that a single person can purchase for a single brand is $2,000
While to transfer money is $10,000 per transaction and up to $10,000 every 30 calendar days.
Step On How To Transfer Money From Gift Card to Bank Account?
Here are the steps to transfer gift cards to your bank account using the CardCash Option.
- Go to this page on the CardCash website
- Enter the gift card you have Ex: Walmart
- Enter the amount on the gift card Ex: $100
- Click on “GET OFFER” and an offer for how much they will pay you will appear Ex: $88.00
- If you accept the amount, click “Get $88.00 Cash”
- There will be a pop-up window asking how you will like to get paid and choose PayPal Express
- Enter your gift card number and PIN and continue to connect with your PayPal account
- Log-in to your PayPal account and fill the required fields
- Then click on “Get my PayPal Balance”
- Once the balance reaches your PayPal Wallet, you can now transfer the money to your bank account.
The ability to transfer money from your prepaid card to your bank account will depend on your card type.
The best way to check whether your card has this feature is to check the customer service section of your prepaid card or gift card provider. Also, I believe this article gives you a guide on transferring money from a gift card to a bank account.