Walmart says it will accept all working, undamaged copies of games for modern consoles, such as Sony Playstation, Nintendo's Wii and Microsoft's XBOX. Used games will be refurbished and re-sold as "certified pre-owned".
The move puts Walmart in direct competition with similar practices at Gamestop, Best Buy, Target and other stores.
Walmart plans to start the service on March 26 in 3,100 Walmart stores across the nation.
The eGift card can be used at Walmart, Walmart.com or Sam's Club.