Direct payment with a gift card is not possible at most credit card companies
You cannot use a gift card to pay your credit card bill directly. Credit card issuers like Chase, Capital One, and American Express do not accept gift cards as a payment method. When you log into your account to make a payment, the system asks for a bank account, debit card, or wire transfer — not a prepaid or gift card.
The reason is straightforward: a gift card is a liability to the retailer or issuer who sold it, not a payment instrument that banks recognize. Your credit card company has no way to verify a gift card's balance or process it through their payment system. Even if you tried to enter a gift card number in the payment field, it would be rejected.
However, there are indirect ways to convert a gift card into money that can then pay your credit card bill. These routes take extra steps and sometimes cost you a small amount, but they work.
Key Takeaways
- Credit card companies do not accept gift cards as direct payment, regardless of the card issuer or the gift card brand.
- You can convert a gift card to cash or a bank transfer through a resale platform, bank deposit, or cash-out service, then use that money to pay your bill.
- Selling a gift card on a marketplace like CardCash or Raise usually nets you 80 to 95 percent of the card's face value.
- Some banks let you deposit gift cards directly into your checking account through their mobile app, which then becomes available for credit card payment.
- The fastest route is often a gift card-to-cash service at a grocery store or pharmacy, though the payout is typically lower than online resale.
Converting a gift card to cash through resale platforms
The most common method is to sell your gift card on a secondary marketplace. Websites like CardCash, Raise, and Decluttr buy unused gift cards at a discount and resell them. You list the card, a buyer purchases it, and you receive payment by bank transfer or PayPal within a few business days.
The payout depends on the card's brand and current demand. A Visa or Mastercard gift card typically sells for 90 to 98 percent of face value because they work almost anywhere. Retailer-specific cards like Target or Amazon gift cards sell for 80 to 95 percent of face value. Restaurant and entertainment cards often sell for less — sometimes 60 to 75 percent — because fewer people want them.
Once you receive the money in your bank account or PayPal, you can transfer it to your checking account and then pay your credit card bill through your normal payment method. The entire process usually takes three to seven business days from listing to receiving funds.
Depositing a gift card directly into your bank account
Some banks now allow you to deposit gift cards directly through their mobile app. Chase, Bank of America, and Wells Fargo have rolled out this feature for certain customers, though availability varies by branch and account type. You photograph the gift card's front and back, and the bank credits your checking account with the amount.
This is the fastest route if your bank supports it. The deposit usually posts within one business day, and you can then pay your credit card bill when ready. Check your bank's mobile app under "Deposit" or "Mobile Check Deposit" to see if gift card deposits are an option for your account.
Not all banks offer this yet, and some limit it to certain card types. Call your bank's customer service line to confirm whether your account is may be able to access before you try to deposit a gift card.
Using a gift card-to-cash service at retail locations
Grocery stores, pharmacies, and big-box retailers often have kiosks or services that convert gift cards to cash on the spot. Coinstar machines at grocery stores and Walmart, for example, accept gift cards and dispense cash when ready. You do not need to wait for a buyer or a bank transfer.
The trade-off is a lower payout. Coinstar and similar services typically take a 5 to 10 percent fee, meaning a $100 gift card nets you $90 to $95 in cash. Some retailers offer better rates if the gift card is for their own store — for instance, Target may give you 95 percent of face value if you convert a Target card to cash at a Target kiosk.
Once you have the cash, you can deposit it into your checking account and pay your credit card bill. This method works well if you need the money quickly and do not mind the fee.
Paying for something you would buy anyway, then using that money elsewhere
A less direct but sometimes practical approach is to use the gift card to buy something you were already planning to purchase, then use the money you would have spent on that item to pay your credit card bill instead. This does not create new money, but it frees up cash in your budget.
For example, if you have a $50 Amazon gift card and were planning to buy a book this month, use the gift card for the book. The $50 you would have spent on the book now goes toward your credit card payment. This only works if the gift card is for something you actually need or want, and it does not help if you have no other discretionary spending that month.
Why you should not ignore a credit card balance while holding a gift card
If you have a credit card balance and a gift card sitting unused, converting the gift card to pay down the balance is usually worth doing, even if you lose a small percentage to fees or resale discounts. Credit card interest rates typically run 15 to 25 percent per year, while a gift card resale service might cost you 5 to 20 percent of the card's value. Paying down the balance faster saves you more in interest than you lose in conversion fees.
The exception is if the gift card is for something you genuinely need soon and the credit card balance is small or already at a low interest rate. But in most cases, converting the gift card and paying the credit card bill is the smarter financial move.
Frequently Asked Questions
Can I use a Visa or Mastercard gift card to pay my credit card bill directly?
No. Even though Visa and Mastercard gift cards work like debit cards at stores, credit card companies do not accept them as a payment method. You must convert the gift card to cash or a bank transfer first, then use that money to pay your bill.
What if my gift card has a small balance left on it?
Small balances are harder to sell on resale platforms because the payout is not worth the effort. A $5 gift card might only sell for $3 to $4. In this case, using the card to buy something you need, or depositing it directly through your bank app if available, is usually more practical than trying to resell it.
Do I have to pay taxes on the money I get from selling a gift card?
Generally, no. Selling a gift card for cash is not considered income — you are straightforward converting an asset you already own into another form. However, if you sell gift cards as a business or regularly resell them for profit, that income may be taxable. For occasional personal sales, you do not owe taxes.
How long does it take to convert a gift card and pay my credit card bill?
It depends on the method. A retail kiosk gives you cash when ready. A resale platform takes three to seven business days. A bank deposit through a mobile app usually posts within one business day. Plan for at least one to two days if you need the payment to post to your credit card account.
Will converting a gift card to pay my credit card bill hurt my credit score?
No. Paying your credit card bill — regardless of where the money comes from — helps your credit score by lowering your balance and showing on-time payment. Converting a gift card to make that payment has no negative effect on your credit.