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Use Square to convert your Visa gift card balance into cash
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Visa gift cards are not cash, but it is possible to turn them into cash using Square, a financial system software helping small businesses take credit card charges. Some articles suggest using PayPal, but PayPal doesn't always work since these gift cards can't be verified. Square is a mostly reliable option, but it will cost you a percentage of the amount transferred and the cost of the reader if you purchase one (details in "Tips" section ). Please note that some users report that Square has started to block Visa gift cards, but Square still assures users that these cards are accepted. [1] X Research source This wikiHow guide will help you workaround this potential block, and do everything you need in order to transfer the Visa gift card balance to your bank account via Square.
Things You Should Know
- To ensure that Square accepts your Visa gift card, try to use an account that already belongs to an established merchant, or to make several small transactions before making the transfer.
- Determine your gift card's exact balance and charge that amount to your Square reader. Then, swipe the gift card to transfer the balance to your bank account.
- If you use the Square reader, you will be charged a flat rate of 2.75%. If you manually enter the card number, you will be charged 3.5% + 15¢.
Steps
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Activate your Visa Gift Card online at the website provided on the card. Many cards come pre-activated, so you don't have to worry about this unless the card says that it has to be activated.
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Check your card balance if you do not know it. This can be done either by going to a website or calling a number (both will be on the card). Write the balance down so you can remember it.
- Note that some issuers of Visa gift cards charge a fee to check the balance or speak with customer service.
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Transfer the money or spend it quickly. Visa gift cards, along with the similar card from American Express, charge monthly fees just for having a balance. If you plan on spending or trying to get it into your bank account, do it quickly. [2] X Research source
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Sign up for Square and enter your information. This can be done either via the app (available for both iOS and Android) or via the website, www.squareup.com. You will need to enter:
- Your name and email
- The name of your business
- The type of business
- How you plan to use Square
- Estimated annual revenue
- If you are not a business, you will still need to enter information for these fields.
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Link your bank account to Square. Square will deposit the balance from your gift card or any other transactions into this bank account. This is not typically immediate, and it can take up to two business days according to Square's FAQ. This approach may not work if you need to make the transfer from the gift card quickly. [3] X Research source
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Decide if you will use a card reader or manual entry. Square charge different rates to users if you use the card reader or make a manual entry. A reader charges a lower fee of 2.75% versus the 3.5%+$0.15 transaction fee for a manual entry. [4] X Research source
- You can buy Square readers at a store like Best Buy, order one from Square for $29.00, or borrow one from a friend. Multiple accounts can share the same reader.
- Your first basic magstripe reader from Square is free. These are only capable of swiping cards, but Square will offer you this free option when you first create an account.
- You can buy Square readers at a store like Best Buy, order one from Square for $29.00, or borrow one from a friend. Multiple accounts can share the same reader.
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Appear like a merchant. While Square indicates it accepts Visa gift cards, there are mixed reports that Square will reject a Visa gift card if it believes you are using the service once to transfer a balance. In order to avoid this, you need to convince Square that you are a regular merchant or find a friend that is an established merchant to make the transfer for you.
- As a payment service provider, Square's services are not limited to merchants. There is no actual penalty for appearing as a merchant when you are not one.
- You can skip this part and try to make the gift card transfer following the steps in the next part . Just be aware that it may fail.
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Open the Square app and enter an amount for a transaction. This is a transaction that you create and pay with your own funds or credit card. You are not actually buying or selling anything. This creates a transaction record in Square before trying to transfer the Visa gift card balance. It is recommended that you enter an amount in Square that is not too large since it charges a transaction fee. You will get this money back in the bank account that is linked to Square.
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Input the credit card information for the charge. You are not using the Visa gift card yet, so choose another card for this transaction. It does not matter what kind of card you use.
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Conduct a few more small transactions with your own funds. This will make you appear more like a merchant and also serve as a test ahead of a the larger balance transfer.
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Check your bank account linked to Square. The transactions you have made are credited to your bank account within two business days. Square will charge transaction fees, so the amount transferred into your bank account will be the amounts you entered less the fees.
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Charge the gift card balance on Square. The gift card will be authorized, the card's balance will fall to zero, and the funds will be deposited by Square into your bank account within one business day.
- If Square does not allow the transfer, you will see a note that it is against their policy to transfer a Visa gift card balance. They will still charge the 3.5% or 2.75% fee to your bank account, and the balance will get credited back to the Visa gift card.
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Check your bank account for the money. It should take just one business day for the money to show up in your account. Allow an extra day if you made the charge later in the day, as some banks take time to process it. The transaction could show up as a pending deposit and may not have immediate availability. Check your bank's policies online if you are concerned with the timeline of availability.
- A bank's stated policy is typically the worst-case scenario for your fund availability. It is often faster than the stated time frames.
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Check the Visa gift card balance. The Visa gift card should have a balance of zero if you successfully transferred the funds. However, if Square rejected the transaction, you will need to check the balance and make sure the funds were returned to the Visa gift card.
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Community Q&A
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QuestionHow can I check on my gift card balance transfer?Community Answer1.) Call the number on the back of the Visa gift card and check the balance. 2.) If there is a website listed on the back of the gift card, you can go there and check the balance online. 3.) Check your bank account to see if the money was deposited.
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QuestionCan I get cash out of my gift card?Community AnswerNo. Like most other types of gift cards, you cannot extracted money from a Visa gift card.
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Tips
- If you use the Square reader, you will be charged a flat rate of 2.75%. If you manually enter the card number, you will be charged 3.5% + 15¢.Thanks
- The very small amount that you lose in processing fees is made up for in the assurance of knowing that you'll be able to use the funds, as Visa gift cards don't always go through when purchasing something.Thanks
- Individuals only transferring gift card balances are unlikely to justify cost of reader.Thanks
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Warnings
- By following these steps, you may be circumventing the intended use of the card.Thanks
- Square may reject the transaction citing that it does not allow you to use the service to just transfer a Visa gift card balance. In this case, you the transaction amount is credited back to the gift card, but Square can still charge you the normal transaction fee.Thanks
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Things You'll Need
- Visa gift card
- Square account
- Bank account
- Email address
- Square reader (optional)
References
- ↑ https://squareup.com/help/us/en/article/5085-accepted-cards#:~:text=What's%20in%20this%20article%3F&text=Square%20works%20with%20any%20US,JCB%2C%20or%20UnionPay%20International%20logo .
- ↑ http://www.forbes.com/2008/11/26/gift-cards-shopping-forbeslife-cx_jp_1128lifestyle.html
- ↑ https://squareup.com/help/us/en/article/5456-linking-your-bank-account-frequently-asked-questions
- ↑ https://squareup.com/pricing
About This Article
Article Summary
X
1. Activate your Visa gift card online if it isn't pre-activated.
2. Sign up for Square.
3. Link your bank account.
4. Convince Square that you are a regular merchant if necessary.
5. Enter an amount for a transaction and input the card information.
Did this summary help you?
Thanks to all authors for creating a page that has been read 668,796 times.
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