Sammi Sullivan is a staff writer for debt. com. Originally from the Chicagoland area, she holds a B. A. in Liberal Arts and Sciences from the University of Iowa with a concentration in theater and psychology. Her experience as a writer spans across diverse industries, from fashion and beauty to education, entertainment, and personal finance.
Sammi’s a storyteller at heart. In her spare time she performs, directs, and teaches at Just the Funny Improv Theater in Miami Florida.
Joe Pye is Debt. com’s managing editor and a PFE-certified debt management professional. As a journalist, he’s covered personal debt since 2016.
Two polls were released before the holidays that showed Americans use plastic to pay for things: Capital One’s Shopping Research says that 66.4 percent of Americans buy gift cards. At the same time, Debt. com’s Holiday Shopping Survey found that 66% planned to go into credit card debt. As people wake up from their “holiday debt hangover,” they may wonder, “Can I use those gift cards to pay off your credit card balance?”
Unfortunately, you can’t directly use a gift card to pay off your credit card balance, even if it is a general gift card like a Visa or Mastercard. Credit card companies typically only accept payments through bank accounts, checks, or using another credit card for a balance transfer.
There are, however, still ways to use those gift cards to help you manage your credit card debt. It depends on your gift card type and using round-about ways to leverage them.
Gift cards are one of the most popular holiday gifts. In fact, over 64% of Americans planned to purchase a gift card this past holiday season. A Debt. com survey found that 66% of Americans planned to go into debt this holiday season.
This might lead you wonder can you use some of those gift cards you got for the holidays to pay off some of that credit card debt? You can’t directly use gift cards to pay off credit card balances.
Even if it’s a general gift card like Visa or Mastercard that look like debit cards, credit card companies typically only accept payments through bank accounts, checks, or by using a balance transfer credit card. There are still ways to use those gift cards to help you manage your credit card debt.
The method you’ll use will depend on which type of gift card you have. There are two types of gift cards: open loop and closed loop.
Open loop gift cards are the ones you can use almost anywhere like a Visa or Master Card. Some of these cards allow you to withdraw the balance as cash at an ATM. But fees will likely apply or you can use it to buy money orders and then deposit and cash them.
Another option is to link your PayPal or Venmo account and transfer the money to your bank. If those don’t work, buy things like gas and groceries with a gift card. This will free up your regular money to pay off your debt. Closed gift cards are less versatile since they can only be used at a specific store. These are cards like Starbucks or Target gift cards. t.
There are however still ways you can use them to help pay off your credit card debt. There are third-party websites that will buy your gift card from you.
You won’t get the full value but at least it’s some cash you can use to pay down your debt. If you have gift cards with low balances don’t get rid of them. That’s tossing money away. Cashiers can split payments between multiple cards, helping you use up low balance gift cards. Or if you have multiple cards of the same type you can combine them to simplify your spending.
Whatever you do try to use your gift cards sooner rather than later. Holding on to gift cards for a long period of time can be risky. You can lose and forget them. The store could go out of business or their value can just diminish.
Open loop cards charge inactivity fees after a year of nonuse and they’ll eat away at that balance. If you do plan to use your gift card, make sure you do so wisely. according to Capital One Shopping research, 61% of consumers spend more than a gift card’s value in redeeming them for an average of $31.75 cents more than the card’s value.
Check out Debt.com for more tips on paying down credit card debt. For more news and information subscribe to Debt.com’s YouTube channel, and if you need help getting out of debt or have questions visit Debt.com today.
Gift cards have become a popular gift item over the years. They provide the recipient with the flexibility to purchase whatever they want within the issuing merchant’s offerings. But sometimes, after the holidays or a special occasion you’re left with a gift card that you don’t really need or want.
If you’d rather use that money to pay off your credit card debt, what can you do? Let’s find out if you can use gift cards to pay your credit card bills.
The Short Answer
Unfortunately, the short answer is no, you cannot directly pay a credit card bill with a gift card. Credit card companies do not allow you to just enter a gift card number and PIN online or over the phone to make a payment.
But that doesn’t mean you can’t use a gift card to pay off your credit card debt. It just requires a few extra steps.
Why Credit Cards Don’t Accept Gift Cards
Most credit card companies only allow you to make payments in a few specific ways, like:
- Checks
- Money orders
- Bank account transfers
- Wires
- Online account funding with a bank account
- Payroll deductions
They do not have the capability to process gift card numbers as a form of payment. Credit card processing and gift card processing work very differently behind the scenes.
When you pay for something with a gift card, the store checks to see if the card is valid, takes the amount off, and approves the transaction.
A credit card company can’t process payments through all of the different gift card systems, though. The technology infrastructure just doesn’t exist.
How to Use Gift Cards to Pay Credit Cards
Just because you can’t pay your credit card bill directly with a gift card doesn’t mean you’re out of options. Here are a few ways to convert the funds on a gift card into cash that you can then use to make a payment:
Sell the Gift Card
There are several websites, such as CardCash, GiftCardGranny, and CardPool, that will buy gift cards for a percentage of the face value. This converts the gift card into cash that you can then use to pay your credit card.
The exact amount will depend on the website, demand for that merchant’s gift cards, and how much money is left on the card. But you can typically get 70-90% of the value.
Exchange it for a Prepaid Visa Card
Some stores will allow you to exchange a gift card for a prepaid Visa or Mastercard. This acts like a debit card that you can then use to buy a money order or make an online payment to your credit card.
Just be aware that there is usually a purchase or exchange fee involved, so you’ll get slightly less value than the original gift card.
Use it to Buy a Money Order
If the gift card is for a retailer that sells money orders, like the post office or Walmart, you may be able to directly exchange the gift card for a money order made out to your credit card company.
Most credit card companies accept money orders by mail as a form of payment. Just make sure to follow the proper procedures for mailing money orders.
Add it to Your PayPal or Venmo Account
If you link the gift card to your PayPal or Venmo account, you can transfer the funds to your bank account. From there, you can use the money to make an online payment to your credit card.
However, take note of any fees involved for transferring from PayPal or Venmo to your bank. Make sure it’s still worth it after deducting those.
Buy Something to Resell
If there are no good options for exchanging the gift card directly, another approach is to use it to buy an item you can then resell for cash.
For example, buy a popular electronics item or piece of jewelry with the gift card, then sell it on eBay, Craigslist, or Facebook Marketplace. Use the profits to pay down your credit card.
Tips for Using Gift Cards to Pay Credit Cards
-
Check the gift card balance first. Make sure there’s enough on the card to make it worthwhile after any exchange fees.
-
Compare exchange sites to get the best rate. Rates can vary significantly between sites.
-
Beware expired gift cards. If it’s an older gift card, make sure it hasn’t expired and the funds are still available.
-
Understand any fees involved. There are often fees for exchanges, using prepaid cards, etc. Factor these in.
-
Keep the exchange value. Don’t exchange a $100 gift card for $70 if you don’t need $70 right now. Wait until you’re ready to use the full value.
-
Pay down highest interest cards first. If exchanging multiple gift cards, use the cash to pay down your most expensive credit card debt.
Alternatives to Paying Credit Cards
If you receive a gift card you don’t want, here are a few other options besides paying down credit card debt:
-
Regift it – Give it to someone else on your gift list if you won’t use it.
-
Redeem for goods to sell – Apply the credit and sell the items.
-
Donate it – Give it to a charity organization that can use it.
-
Use it on budgeted purchases – Buy groceries, gas, or other budgeted items.
The Bottom Line
Unfortunately, credit card companies do not directly accept gift cards as a form of payment on accounts. But that doesn’t mean gift cards are useless if you want to pay down debt. With a few extra steps, you can convert the gift cards into cash or money orders that you can then use to pay your credit card balance. Just be aware of any exchange fees involved to make sure it’s worth it.
Withdraw the balance as cash
Some open-loop gift cards let you withdraw the balance as cash at ATMs. You can then use that cash to pay off your credit cards. Here’s how:
- Check the card: See if your card allows cash withdrawals. The gift card website should have that information.
- Find your PIN: It may be located on the card. If not, you can look for it on the card’s website or call the customer service number.
- Visit an ATM: Withdraw cash using your card and PIN, just like a debit card.
Remember that there are usually fees for ATM withdrawals from gift cards, so you may not be able to get the full amount off the gift card.
Some stores, including Walmart, allow you to purchase money orders using your open-loop gift cards. Once you have the money order, deposit it into your bank account or cash it at a check-cashing service. This process effectively converts your gift card balance into usable cash.
Buy items and resell them
If all else fails, you can always purchase items from the store and try to resell them on platforms like eBay, OfferUp, or Facebook Marketplace. If you get the item on sale, you can resell it for a profit. Do some research and try to pick an item that is in demand and easy to resell. This method does require a lot more effort to get actual cash from the gift card, and you risk being stuck with an item you don’t want, but it’s worth a shot.
Convert a Visa Gift Card into Cash INSTANTLY
FAQ
Can I use a Visa gift card to pay down a credit card?
You can’t directly use gift cards to pay off credit card balances. Credit card companies usually only take payments from bank accounts, checks, or balance transfer credit cards. This is true even if the gift card looks like a debit card, like a Visa or Mastercard. Jan 16, 2025.
How do I transfer money from a gift card to my bank account?
It’s generally not possible to directly transfer money from a gift card to a bank account, as gift cards are typically designed for point-of-sale purchases.
Can I pay a bill with a Visa gift card?
Your Visa gift card can be used to pay your bills most of the time, since Visa debit cards can also be used to pay bills.