Can You Pay Off Credit Cards with Gift Cards?


Throughout your life, you’ve likely received multiple gift cards that you have never used or may never intend on using. You might have even accumulated gift cards that have gotten lost or stored away.

However, buying gift cards can save time and are simultaneously convenient to buyers and recipients because they reduce overall shopping time and provide spending options.

Credit cards cannot be paid off with gift cards. Despite this, credit cards can be indirectly paid off using gift cards if enough money is transferred through alternative means. Many methods exist and usually, several steps must be taken to make payments. Common ways to transfer money from gift cards include PayPal and money orders.

While having cash in hand is more desirable than owning a gift card, there are ways to utilize your gift cards so that you may make the best of your money.

Read on for information and how-to instructions regarding the payment of credit cards using gift cards.

Can I Pay My Visa with a Visa Gift Card?

You cannot pay your Visa with a Visa gift card because Visa gift card balances cannot be directly transferred to bank accounts. However, you can transfer your Visa gift cards to PayPal or Venmo or convert them to cash in hand. This can be done in the following ways:

  • Obtain money for gift cards at a gift card exchange kiosk
  • Go to a gift card marketplace like CardCash.com
  • Trade your Visa gift card with another for cash

Furthermore, you cannot use a gift card kiosk to exchange your Visa gift card for the money. While gift card kiosks in various locations like supermarkets and retails stores accept regional, national, and even some local gift card brands, they do not accept bank-issued cards like Visa, MasterCard, Discover, or even American Express.

Recommended Financial Geek Article: Can You Buy a Visa Gift Card with a Credit Card?

How Do I Pay My Visa with a Visa Gift Card?

To pay your Visa with a Visa gift card, you may utilize any of the following options

  • Add your gift card balance to your PayPal or Venmo account: Then, transfer your money from your PayPal or Venmo account to your bank account.
  • ·Get money for one or many gift cards at a gift card exchange kiosk: Gift card exchange kiosks, in exchange for your gift cards, typically offer checks by mail, direct deposit, and PayPal.
  • Alternatively, you may choose a reputable gift card marketplace to exchange your gift cards for cash: After obtaining money at a gift card exchange kiosk or from an online marketplace, you must deposit the funds into your bank account.

Ultimately, there are multiple paths you may take to obtain your goal of paying off your credit card.

Can I Transfer Money from Gift Cards to Debit Cards?

Money can’t be directly transferred to a debit card from a gift card. Furthermore, debit cards can only be used to make payments on visa cards or credit cards by phone or online, and not in-person. This can be done by entering your nine-digit routing number. Despite this, there are alternative ways to transfer money to debit cards.

How Do I Transfer Money from Gift Cards to Debit Cards?

To transfer money to your debit card with a gift card, you may utilize one of the following options, as is described on Logical Dollar.com and in this article on the personal finance website, Investopedia:

  • Enter your Visa gift card information into your PayPal account – Then, transfer the money to your bank account to be able to access it through your debit card.
  • Choose a reputable website or gift card marketplace to exchange your gift cards for cash

You can indirectly transfer money from gift cards to debit cards. Through debit cards, gift cards can also be used to make credit card payments, and this is quite convenient if you pay online or by phone.

Can I Transfer Money from Gift Cards to PayPal?

Although you can transfer money from gift cards to PayPal, you cannot directly use PayPal to pay off your credit cards. After having deposited money from your PayPal account into your bank account, you can instead use your bank account to pay credit card bills.

How Do I Transfer Money from Gift Cards to PayPal?

To transfer money from a store’s gift card to your PayPal account, you should follow these steps, according to PayPal.com

  • Go to the website, CardCash.com
  • On the home page of the website, enter the following information: Enter your gift card balance and merchant’s name. Then, click “Get Offer.” If your card is transferable, you will be shown how much money can be deposited from your card into your PayPal account.
  • To redeem more money, click “Add Card:” Once you are ready, enter the appropriate information in all required fields and click “Continue.”
  • Enter your gift card’s information: This includes its number and PIN.
  • Log in to your PayPal account: Enter the appropriate information in the appropriate fields and press “Get my PayPal Balance.”

It is worth noting that not every store’s gift cards are redeemable through CardCash.com. Furthermore, and according to the FAQ section of the Card Cash website, you will not receive your gift card’s full value when transferring money to PayPal.

Recommended Financial Geek Article: 18 (Uncomplicated) Smart Money Moves For Your 20s

Conclusion

Gift cards are popular presents during holidays and special occasions. Recently, and during the spread of COVID-19, they became even more popular because they can be purchased online and easily mailed (which eliminates direct contact with retailers and recipients).

Sometimes, paying a credit card off with a gift card is not the best or most easily accessible solution, such as when transferring money from a gift card to your PayPal account. However, easier options exist, like when purchasing and depositing a money order into your bank account with your gift card to make payments on your credit cards.

Ultimately though, gift cards can be used in a variety of ways and provide many benefits, even if you do not intend to use them as originally instructed.

Thanks for reading folks!

Geek, out.

Noel Moffatt

Noel Moffatt is the founder and main contributor for his blog - The Financial Geek. Based in Canada, Noel's passion for personal finance has helped him amass over 300k readers to his Financial Geek blog.

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