How to Sell Gift Cards for Cash or Direct Payment

What happens when you sell a gift card

When you sell a gift card, you transfer ownership of the card to a buyer in exchange for money. The buyer pays you directly—usually through a bank transfer, PayPal, or another payment method—and you hand over the card or its code. The buyer then uses the card to make purchases at the original retailer. You no longer have access to the card or its balance once the sale is complete.

The amount you receive is almost always less than the card's face value. A $100 gift card might sell for $85 to $95, depending on the retailer, how much balance remains, and current demand. Some cards sell for even less if they are close to expiration, have restrictions, or are for retailers with less popular brands.

This is different from trading a card through a gift card exchange platform, where the platform takes a cut and handles the transaction. When you sell directly to another person or through a resale marketplace, you keep more of the money, but you also take on more responsibility for the sale going smoothly.

Key Takeaways

• You will receive less than the card's face value—typically 70 to 95 percent—because buyers expect a discount for the convenience of purchasing secondhand.
• Marketplaces like Cardcash, Raise, and Decluttr handle the transaction and deposit money into your bank account, but they take a percentage of the sale.
• Selling directly to someone you know or through Facebook Marketplace or Craigslist keeps more money in your pocket but requires you to verify the card balance and handle payment yourself.
• The card's retailer, remaining balance, and expiration date all affect how much a buyer will pay; popular retailers and cards with longer validity sell faster and for higher percentages.
• Once you hand over the card or code, you have no recourse if the buyer claims the card was already used or if the transaction goes wrong.

Marketplaces that buy gift cards and pay you directly

Cardcash, Raise, and Decluttr are the largest platforms that buy gift cards from individuals. You list the card, the platform sets a price based on current demand, and if a buyer purchases it, the platform deposits money into your bank account via ACH transfer or PayPal. The process typically takes 3 to 10 business days from the time a buyer purchases your card.

Each platform takes a different cut. Cardcash and Raise usually pay out 70 to 92 percent of face value, depending on the retailer and card condition. Decluttr often pays slightly less but processes faster. All three require you to photograph the card (front and back, with the security code partially obscured) and confirm the balance before listing.

These platforms protect both you and the buyer by holding the payment until the buyer confirms the card works. If the buyer reports the card as invalid or already used, the platform investigates and may reverse the payment. This protection is why you receive less than you would selling directly—the platform is taking on the risk and handling customer service.

Selling directly to someone you know or through local marketplaces

If you sell a gift card to a friend, family member, or stranger through Facebook Marketplace, Craigslist, or OfferUp, you keep the full amount you negotiate. There is no middleman taking a percentage. However, you are also responsible for verifying the card balance, handling the payment, and managing any disputes.

Before you meet or send the card, confirm the balance by visiting the retailer's website or calling their customer service line. Write down the balance and take a screenshot. Ask the buyer to pay you through a method you can verify immediately—a bank transfer, Venmo, or PayPal—so you know the money has arrived before you hand over the card or code.

The risk here is significant: once the buyer has the card, they can use it immediately, and if they claim it did not work or was already empty, you have no way to recover the money unless you kept proof of the balance and can dispute the payment through your bank. Many people avoid this risk by using a marketplace platform instead, even though they receive less money.

How payment reaches your bank account

Marketplace platforms deposit money through ACH transfer, which moves funds directly from the platform's bank account to yours. You provide your bank account number and routing number when you set up your account. ACH transfers are free and take 3 to 5 business days, though some platforms offer faster options for a small fee.

PayPal is another common payout method. Money arrives in your PayPal account immediately after a sale, and you can transfer it to your bank account for free (3 to 5 business days) or pay a fee for faster transfer. Some platforms also offer payment to a prepaid card or store credit, though cash to your bank account is the most direct route.

If you sell directly to someone, you control the payment method. Bank transfer, Venmo, PayPal, and Cash App all move money quickly, but bank transfer is the most secure because it is tied to your actual bank account and cannot be reversed once it clears (usually within 24 hours). Venmo and PayPal transfers can sometimes be reversed if the sender disputes the transaction.

Which gift cards sell fastest and for the highest price

Popular retailers with broad appeal sell faster and for higher percentages of face value. Amazon, Target, Walmart, and Best Buy cards typically sell for 85 to 95 percent of face value because many people want them and they have no expiration date. Restaurant and entertainment cards (Starbucks, Chipotle, movie theaters) sell for 70 to 85 percent because they have narrower appeal and may expire.

Niche retailers, regional chains, and cards for stores that are closing or struggling sell for much less—sometimes 50 to 70 percent of face value—because fewer buyers want them. Visa and Mastercard gift cards are harder to sell through marketplaces because they carry higher fraud risk; some platforms do not accept them at all.

The remaining balance also matters. A card with $5 left on it is harder to sell than one with $50, even if both are for the same retailer. Expiration date is critical: a card expiring in six months sells for more than one expiring in two months. Check the card's terms before listing to know what you are working with.

Fees and what they cost you

Marketplace platforms charge a seller fee that ranges from 5 to 15 percent of the sale price. On a $100 card that sells for $85, you might pay $4 to $13 in fees, leaving you with $72 to $81. Some platforms charge a flat fee per transaction instead of a percentage, which can be better if you are selling a high-value card but worse for smaller amounts.

There are no fees for selling directly to someone you know, but you lose the platform's buyer protection and fraud investigation. If the buyer disputes the transaction through their bank or payment app, you may have to refund the money even if you provided the card as promised.

Compare the net amount you will receive across platforms before listing. A card that sells for 90 percent on one platform but costs 10 percent in fees leaves you with 81 percent. Another platform might pay 80 percent with 5 percent in fees, leaving you with 76 percent. The difference adds up, especially on high-value cards.

Steps to sell a gift card through a marketplace

First, choose a platform. Cardcash, Raise, and Decluttr are the most established, but there are others. Visit the platform's website and create an account with your email and bank account information.

Second, check the card balance. Visit the retailer's website or call their customer service line. Write down the exact balance and take a screenshot. Do not rely on memory or the receipt.

Third, list the card. Upload a photo of the front and back of the card (obscure the security code on the back). Enter the retailer name, card balance, and expiration date. The platform will show you the price it is offering based on current demand.

Fourth, accept or decline the offer. If you accept, the card goes live for buyers to purchase. Once a buyer purchases it, you will receive instructions on how to deliver the card—usually by photographing the code or mailing the physical card.

Fifth, deliver the card and wait for confirmation. The platform holds your payment until the buyer confirms the card works. This usually takes 3 to 10 business days. Once confirmed, the money is deposited into your bank account.

What to watch out for

Do not list a card that has already been partially used unless you disclose the exact remaining balance. Platforms verify balances before paying you, and if the balance is lower than you stated, the sale can be cancelled and you may be banned from the platform.

Do not sell a card that is close to expiration without noting the date clearly. Buyers will see it, and if you misrepresent the expiration date, the platform will side with the buyer and reverse your payment.

Do not use a payment method you cannot verify immediately if you are selling directly. Checks can bounce, and some payment apps allow reversals days or weeks after the transaction. Bank transfer and PayPal are safer, but confirm the money has actually arrived in your account before handing over the card.

Do not expect to sell a card for its full face value. The discount is normal and reflects the buyer's risk and the platform's cost. If a platform is offering unusually high percentages, verify that it is legitimate before uploading your card information.

Frequently Asked Questions

Can I sell a gift card that has already been used?

Yes, as long as you disclose the remaining balance accurately. Platforms verify the balance before listing, so you cannot misrepresent it. A partially used card will sell for less than a full-balance card, but it can still move if the remaining amount is substantial and the retailer is popular.

What happens if the buyer says the card does not work?

If you sold through a marketplace platform, the platform investigates. If the card balance was verified before listing and the buyer is claiming fraud, the platform usually sides with you and pays you anyway. If you sold directly to someone, you have no recourse unless you can prove the card worked at the time of sale (a screenshot of the balance, for example).

How long does it take to get paid?

Through a marketplace, payment arrives in your bank account 3 to 10 business days after a buyer purchases your card. The delay is because the platform waits for the buyer to confirm the card works before releasing your money. Direct sales can be faster—money arrives as soon as the buyer sends it—but you take on more risk.

Do I have to report the money I make from selling gift cards?

If you sell a gift card for less than its face value, you are selling a used item at a loss, which is generally not taxable income. If you sell it for more than you paid (which is rare), the profit may be taxable. Keep records of what you paid for the card and what you sold it for. If you sell many cards regularly, consult a tax professional, as the IRS may view it as a business.

Which platform pays the fastest?

Decluttr typically processes faster than Cardcash or Raise, sometimes depositing money within 3 to 5 business days. However, speed varies based on how quickly a buyer purchases your card and confirms it works. Check each platform's current processing times before listing, as they can change.