The world has gone digital wherein 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.
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, then you are in the step of transferring money from your prepaid gift card to your bank account for easy usage.
Let see a little overview on gift cards
According to Investopedia, a gift card is a prepaid debit card that contains a specific amount of money available to use 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 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.
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 a service called CardCash.
There are some gift cards that 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 for transferring money from your gift card to your bank account.
You can use mobile payment services like CardCash (by PayPal) to transfer your 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 that it’s really the cash value that you want from the gift card.
How Much Does It Cost To Transfer Money From Gift Card To Bank Account?
There are several options of transfer which is either by downloading a square reader or using MoneyGram
Basically, you will pay based on the amount you are tranferring from your gift card to your bank account for a fee less than $200. MoneyGram charges you base fee of $1.99
While for amounts above $200, it charges $1.99 + 1% of the transferred amount. For example, if you’re going to send $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 just 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 that will cut into your total.
This is the eaiest ways to transfer funds, espaecially 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 transtraction depends on your bank. Some tranfers can be completed within a few hour 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 doing a transfer for the first time, you will have to create a new “transfer-to” account online, which can take up to 5-7 business days to authenticate.
After that, it can take another 2 business days to receive the money in your account.
But if you are using the 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 Card?
Yes, there is a transfer limit, based on the U.S. government 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 can be purchased by a single person 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.
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 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 how to transfer money from a gift card to a bank account