Gift cards, also known as gift certificates or a gift vouchers, are essentially a type of payment, similar to a debit card, with a set amount of money on it for a specific store, restaurant, or other business. Typically you will have fixed amounts of money like $10, $15, $25, etc. to spend on whatever you want in the store that the gift card is for. Gift cards make for great gifts, they’re easy to acquire — as a lot of major retailers will have racks of gift cards to buy — and nowadays you’ll find that digital gift cards are becoming more and more popular due to their versatile nature.
Getting a gift card for the first time, much like getting a debit or credit card for the first time, might come with a few questions. You might be curious if your gift cards can work the same way as a debit/credit card. Usually with a debit/credit card, you can go to an ATM and withdraw money from your account. What gift cards can be used at an ATM?
The answer might surprise you.
There are also a few other related questions that you might be curious about, like:
- What prepaid cards allow ATM withdrawals?
- Can you withdraw cash from a Visa/Vanilla Visa/Mastercard gift card?
- Where can I convert my gift card to cash?
- Can I sell my gift card and get paid instantly?
- How do I get a prepaid card into my bank account?
Let’s go through your questions about gift cards so you can know what you can and can’t use a gift card for…
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What gift cards can be used at an ATM?
Almost all “regular” gift cards, like a Target, Best Buy, or Amazon gift card, won’t allow you to withdraw cash from the card at an ATM. So if you have a gift card to a store you’ll never go to and are interested in going to your ATM to get the cash off that card, you’re going to need to look in a new direction (more on that later).
However, there are such things as “prepaid cards” which are a form of gift card/debit card that allows you ATM withdrawals.
But what is a prepaid card and how does it differ from a regular gift card?
A prepaid card is a card you can use to pay for things just like a debit, credit, and gift card, but “a prepaid card is not linked to a bank or credit union account,” according to Consumer Finance. You will instead buy a card with money loaded onto it and then you can spend up to that amount. Then, once you spend all the money on the card, you will have used the card up, just like a regular gift card.
But why would I use a prepaid card?
- Prepaid cards are a great alternative to cash. Instead of carrying cash you can instead carry a prepaid card to pay for things you would normally use cash for.
- They’re a great alternative for people who don’t have a regular debit or credit card linked to a bank account. With a prepaid card you don’t have to have a bank account to buy and use it.
- It’s a great way to manage money. If you want to get better at budgeting and saving your money, having a prepaid card with a select amount on it can limit your spending habits and help you manage your money better. (You can have a prepaid card that’s specific to one thing like ordering food out or getting yourself a well deserved treat at the end of a long work month).
Tip: It’s good to note that some prepaid cards will come with fees, so shopping around and doing your research on the best prepaid card that’s right for you and your circumstances is key.
Prepaid cards also don’t have the same limits regular gift cards do. You can use them at any store and you can even pay your bills with some of them! It makes for an amazing gift for a birthday, holiday, or “going away” gift from a relative.
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What prepaid cards allow ATM withdrawals?
Now that you know a little bit more about prepaid cards, you might be wondering about what prepaid cards allow ATM withdrawals…
The short answer is that it depends on the prepaid card. For some prepaid cards, like Mastercard, you can. According to their website, “you may withdraw cash against the balance on most Mastercard prepaid and gift cards at any ATM.”
Tip: Most prepaid cards will either state on the back of the card or on their website, like Mastercard, if you can use your prepaid card for ATM withdrawals.
If you’re wondering whether your prepaid card has ATM convenience or if you want to get a prepaid card for someone else that has ATM convenience, there are 5 options that you might be interested in:
1. PayPal Prepaid Mastercard
Besides being able to use this prepaid card at an ATM, one bonus to this card is its zero withdrawal fee.
If you’ve ever withdrawn money from an ATM before, then you know sometimes there’s a small fee for the transaction. Sometimes that fee is bigger if you use an ATM that’s not your bank.
- For Example: If you have a Visa PNC Debit Card and want to withdraw $100 from an ATM, but you go to a Dollar Bank ATM, you will get charged a few dollars. (Normally anywhere from $2.50-$3.00).
With a PayPal Prepaid Mastercard, you won’t have to worry about that fee and you can transfer money from your PayPal account onto your prepaid card for free!
2. Netspend Visa Prepaid Card
With this card, you can use it at an ATM, but be wary of their fees. Netspend has an ATM withdrawal fee and a 90 inactivity fee. There is a monthly rate you can pay for unlimited transactions, but this card may have more stipulations than the others on this list.
3. The Mango Prepaid Mastercard
With no interest charges and no hidden fees, this prepaid card can be used at any Mastercard accepting ATM worldwide (though international fees may be higher than fees in the U.S.). You can manage and send your money anywhere with this versatile prepaid card.
4. ONE VIP Visa Prepaid Card
This card is great as you can earn points by “spending with certain merchants, online stores, subscription services and Black-owned businesses.” You can use this prepaid card at any ATM that shows a Visa and/or Plus logo. There may be a fee depending on the transaction.
5. Bluebird American Express Prepaid Debit Account
This prepaid card is reloadable and can be used at ATMs either for free or really low rates. Plus, there’s no fee for checking your balance at an ATM either.
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Can you withdraw cash from a Visa/Vanilla Visa/Mastercard gift card?
There’s a few things to cover here so let’s go through them step by step — or should we say, card by card:
- Visa- Visa gift cards are great; instead of being limited to only one store like a normal gift card, Visa gift cards offer some flexibility. You can purchase things from any participating store, meaning you’re not limited to just one store for this specific gift card. However, with a Visa gift card, you cannot withdraw cash from an ATM. (But there may be a way to sell your Visa gift card for cash, that will be answered in the next section).
- Vanilla Visa Gift Card- “Vanilla Gift” is the leading provider of prepaid gift cards. They can be used anywhere Visa and/or Mastercard is accepted. For the most part, you cannot withdraw cash from a Vanilla Visa Gift Card, however there are some people online that have said they can transfer the card to their PayPal or Venmo account.
- Mastercard Gift Card- According to the official Mastercard website, “you may withdraw cash against the balance on most Mastercard prepaid and gift cards at any ATM.” However, it noted that not all distributors of the Mastercard gift cards will allow for ATM usage, so be sure to check with the seller before you buy if you want to withdraw cash from a Mastercard Gift Card.
Image Credit: MARHARYTA MARKO.
Where can I convert my gift card to cash?
Although you can’t go to an ATM or your local bank and convert all of your unused gift cards to cash, there are other ways you can convert your gift card to cash.
Sites like Raise and CardCash allow users to sell their gift cards where they can get cash back.
(Note, though, that there will be a small fee taken from the total of the gift card. For instance, if you are trying to sell a $25 Amazon gift card, you might get a few dollars taken off of the total cash back).
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Can I sell my gift card and get paid instantly?
Similar to above, sites like GiftCash will allow you to get up to 93% cash back that will be sent to your PayPal fast.
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How do I get a prepaid card into my bank account?
With prepaid cards, most companies will allow you to transfer the money from the card to your bank account. However, some won’t and that’s where you’d have to look at the card’s Terms of Service to see what their rules and regulations are on money transfers. (Or if you can, there might be a fee for doing this).
When you first get a prepaid card or are gifted a prepaid card, it will usually come with a “cardholder agreement” with details about how to activate the card (some prepaid cards require activation before usage or transfer of money) and how to transfer the money to your bank account.
Nowadays, you’ll find that most prepaid cards come with apps or online portals that will allow you to transfer the money directly to your bank account. Usually, you will have to create an account on the website/app, then you will have to link your bank account. After that, you can follow the step by step process on how to transfer your money over.
This article originally appeared on GiftYa.com and was syndicated by MediaFeed.org.
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