A method and system for facilitating the redemption of gift cards are described. The method includes linking a gift card issued by a merchant to a user account, receiving a payment request from the user, processing the payment request so that the merchant is paid with funds in the account, receiving a transaction identifier from the merchant, identifying the merchant, verifying that the account is linked to a gift card issued by the merchant, retrieving a value of the gift card, transmitting the transaction identifier and a request to redeem the gift card, and receiving and depositing funds corresponding to a full or partial value of the gift card.