You cannot pay a credit card bill directly with a gift card
Most credit card issuers 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 gift card. Trying to enter a gift card number in the payment field will be rejected because gift cards are not linked to a bank account and cannot initiate transfers the way a debit card can.
However, you have two practical routes to convert a gift card into money that can pay your credit card bill. The first is to spend the gift card on something you would buy anyway, then use the cash you save to pay the card. The second is to transfer the gift card balance to your bank account through a third-party service, though this usually costs a fee. Both take a few days to a few weeks, so neither works if your payment is due tomorrow.
Key Takeaways
- Credit card payment systems do not accept gift cards directly, even if the gift card is from the same bank that issued your credit card.
- You can spend a gift card on everyday purchases and redirect the money you would have spent to your credit card payment instead.
- Third-party services like CardCash and Raise let you sell a gift card for cash deposited to your bank account, but charge a percentage fee (usually 2 to 15 percent depending on the card type and demand).
- Some gift cards can be transferred to a linked bank account through the card issuer's app, but this is rare and only works with certain retailers.
- If your payment is due within a few days, using a gift card to free up cash is faster than selling it.
Why gift cards do not work as credit card payments
A gift card is a prepaid card that holds a balance at a specific retailer or network. When you try to pay a credit card bill, the payment processor needs to pull money from a source that has a routing number and account number — typically a checking or savings account, or a debit card tied to one. A gift card has neither. It is a closed-loop system that only works at the merchant that issued it (or a partner network), not across the banking system.
Even if your gift card is from a bank — such as a Visa or Mastercard gift card — it still cannot be used to pay a credit card bill. These cards work like debit cards for purchases, but the payment system for credit card bills specifically excludes them. The credit card company's payment portal is designed to move money from a verified bank account or another credit card, not from a prepaid card.
Converting a gift card to cash through your bank account
The most straightforward way to turn a gift card into money for your credit card payment is to sell it to a gift card reseller. Services like CardCash, Raise, and Decluttr buy unused gift cards at a discount and pay you through bank transfer or PayPal. The discount varies by card type and current demand — a Starbucks card might sell for 85 to 92 percent of face value, while a less popular retailer might fetch 50 to 70 percent.
To sell a gift card, you create an account on the reseller's website, enter the card number and PIN, and confirm the balance. The service verifies the card is real and has the balance you claimed. Once approved, they deposit the cash to your bank account (usually within 3 to 5 business days) or to a PayPal account. The fee is already built into the price they offer — you see the payout amount upfront before you agree to sell.
This method works well if you have a week or more before your credit card payment is due. If your payment is due in a few days, the transfer time makes this route risky. Also, if your gift card has a small balance (under $10), the reseller may not accept it, or the fee will eat most of the value.
Using a gift card to free up money for your credit card payment
The fastest way to convert a gift card into a credit card payment is indirect: spend the gift card on something you were going to buy anyway, then use the money you saved to pay your credit card bill. This works when ready and costs nothing.
For example, if you have a $50 Amazon gift card and you need to buy groceries this week, use the gift card to buy groceries on Amazon Fresh or through a partner retailer. That $50 comes out of your gift card instead of your bank account. You then take the $50 you would have spent on groceries and put it toward your credit card payment. The net effect is the same as if you had converted the gift card to cash, but it happens when ready with no fees.
This method only works if you have regular purchases you can shift to the gift card. If the gift card is for a store you do not normally shop at, or if you do not have upcoming purchases, this route is not practical.
Checking if your gift card issuer offers a bank transfer option
A small number of retailers now let you transfer a gift card balance directly to a linked bank account through their mobile app. Target, for instance, allows you to move a Target gift card balance to a debit card in the Target app. Chipotle has a similar feature for its gift card app. This is not common, and it only works with the retailer's own gift card, not third-party cards.
To learn about your gift card issuer offers this, open the retailer's app or website and look for a "transfer balance" or "cash out" option in the gift card section. If it exists, you can usually link a debit card and move the balance in minutes. If it does not exist, the option is not available for that card.
Even when this feature is available, it may come with restrictions. Some retailers only allow transfers if the balance is above a certain amount, or they may limit how often you can transfer. Check the terms before you count on this method.
What to do if you need to pay your credit card bill urgently
If your credit card payment is due in one or two days and you have a gift card, your best option is to use it to cover an when ready expense so you can redirect cash to your credit card. Buy groceries, gas, or household items with the gift card if the retailer sells them. This frees up money in your bank account right away.
If the gift card is for a store that does not sell everyday items (like a clothing retailer), and you do not have time to sell it, you may need to find another way to pay your credit card bill. Contact your credit card issuer to ask about a payment extension or hardship program if you are short on cash. Many issuers will work with you if you call before the due date rather than after.
Do not ignore a missed payment. Late fees and interest charges will cost more than the discount you would take selling a gift card. A phone call to your issuer is always faster than trying to convert a gift card in a rush.
Frequently Asked Questions
Can I use a Visa or Mastercard gift card to pay my credit card bill?
No. Even though Visa and Mastercard gift cards work like debit cards at stores, credit card payment systems do not accept them. You would need to convert the gift card to cash through a reseller or use it to buy something so you can redirect cash to your bill.
Do I lose money when I sell a gift card to a reseller?
Yes. Resellers buy gift cards at a discount, typically 5 to 50 percent below face value depending on the card type and demand. A $100 Amazon gift card might sell for $92 to $98, while a less popular retailer might fetch $60 to $75. The discount is how resellers make money.
How long does it take to get cash from selling a gift card?
Most resellers deposit cash to your bank account within 3 to 5 business days after they verify the card. PayPal transfers are sometimes faster. If your payment is due sooner, this method will not work in time.
What if my gift card has a small balance, like $5?
Resellers often have minimum balance requirements, usually $10 or $20. If your card is below that, they may not accept it. Your best option is to spend it on something you need, or combine it with another card if the reseller allows it.
Can I pay my credit card with a gift card from the same bank?
No. Even if your credit card and gift card are both from the same bank, the payment system treats them as separate products. Gift cards cannot be used as a payment method for credit card bills, regardless of the issuer.