Most reports online claim that consumers are not able to potentially redeem gift cards for personal credit debt.  This claim however, proves to be false because there is in fact a way to cover a portion of debt with a gift card. There are a few requirements and at the end of the day, your’e financial institution needs to accept this form of transaction for it to work. This is how you can make it happen:

  1. Major Issuer-Gift Card must be issued by major banking authority like Visa, Mastercard, or American Express. This means the card will most likely bare the issuer emblem on the bottom right corner if it is eligible.
  2. Split-Tender Transaction– Ask your bank for a split-tender transaction. This means you will pay on the debt by means of gift card along with another payment. Make sure you have excess personal funds to distribute along with the funds from the card. Do not expect to attempt to pay the full amount of the bill with your gift card. This option is not available.

About Split Tender Transactions

Split tender transactions occur when two methods of payment are used. It is likely that this is most prevalent when consumers go to spend the last few dollars on their gift cards in retail outlets. Some smaller retailers do not allow these transactions simply because their point of sales (POS) machines are not made for it. The split tender transactions discussed in this post are strictly to be made over the phone with a dedicated financial representative.

Should your gift card not be honored for one of these split tenders, I suggest trying to sell gift cards with GiftCardRescue. GiftCardRescue.com offers a program where consumers can earn up to $.92 back on every dollar. This is a great way to get cash back with which you can then use to pay bills.