The world has gone digital in which you buy and pay for services online. Also, you can transfer the money you have in your prepaid gift card to your bank account, making it safer and easier to use.
Many people using gift cards find it difficult to transfer money from their gift cards to their bank accounts.
But, the first step to do is to check if your gift card allows you to transfer funds to your bank account.
After completing this step, you are then in the process of transferring money from your prepaid gift card to your bank account for easy use.
Let’s take a look at gift cards
According to Investopedia, a gift card is a prepaid debit card that contains a specific amount of money that can be used for a variety of purchases.
Gift cards are a form of prepaid debit cards loaded with funds for future use. In some situations, they can be used to pay for part of the purchase with cash, or by debit or credit used to balance the expense.
Now that you understand what a gift card is, read on for the steps to transfer money from a gift card to a bank account.
The table of contents below will give you an overview.
Can you transfer money from a gift card to a bank account?
Of course, you can transfer money from most prepaid gift cards to your bank account using a service called 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 indefinitely.
Luckily, there’s a proven way to transfer money from your gift card to your bank account.
You can use mobile payment services like CardCash (via PayPal) to transfer your money from your gift or prepaid card to your bank account.
But the fact is, it’s more expensive than just using a gift card or prepaid card to purchase items. So make sure it’s really the cash value you want from the gift card.
How much does it cost to transfer money from a gift card to a bank account?
There are several transfer options which are done either by downloading a square drive or using MoneyGram
Basically, you’ll pay based on the amount you transfer from your gift card to your bank account for fees under $200. MoneyGram charges you a base fee of $1.99
While for amounts over $200, it charges $1.99 + 1% of transferred amount. For example, if you are going to 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 simply swipe the card like any other card. If you don’t have one, you can get a basic magnetic stripe reader for free when you sign up.
After signing up, you will pay a 2.75% fee on each swipe, which will reduce your total.
This is the easiest way to transfer funds, especially if the square drive 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% if you manually enter card information.
How long does it take to transfer funds from a gift card to a bank account?
The longitude of a transaction depends on your bank. Some transfers can be completed within hours or on the same day.
For most banks, it usually takes a few business days before you see the money in your account.
If you are transferring for the first time, you will need to create a new “transfer to” account online, which may take up to 5-7 business days to authenticate.
After that, it may take another 2 business days to receive the money in your account.
But if you use MoneyGram, the money will arrive in your account the same day. Even new accounts take less than a day to verify.
Is there a transfer limit on the gift card?
Yes, there is a transfer limit, based on US government legal regulations regarding gift card purchase and transfer limitations.
- The maximum amount that can be purchased by one person across multiple gift cards is $10,000
- The maximum amount that can be purchased by a single person for a single brand is $2,000
While money transfer costs $10,000 per transaction and up to $10,000 every calendar day.
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 Site
- 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 on “Get $88.00 cash”
- There will be a pop-up asking how you would like to be paid and choose PayPal Express
- Enter your gift card number and PIN and continue logging in with your PayPal account
- Log in to your PayPal account and fill in 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 the type of card you have.
The best way to check if your card has this feature is to check the customer service section of your prepaid card or gift card provider. Also, I think this article gives you a guide on how to transfer money from a gift card to a bank account.