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Reselling Gift Cards on Ebay
Old 10-11-2010, 06:16 PM   #1
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Reselling Gift Cards on Ebay

I have seen posts here and other places about buying discounted gift cards usually through Craigslist and often thought it was a reasonbly clever way to save money. I recently noticed that Amex gift cards are being offered on Ebay as well, but I see offers from buyers willing to pay as much as $119 for a $100 Amex gift card! Does anyone know why a buyer would pay a premium plus shipping?
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Old 10-11-2010, 07:12 PM   #2
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I have seen posts here and other places about buying discounted gift cards usually through Craigslist and often thought it was a reasonbly clever way to save money. I recently noticed that Amex gift cards are being offered on Ebay as well, but I see offers from buyers willing to pay as much as $119 for a $100 Amex gift card! Does anyone know why a buyer would pay a premium plus shipping?

I've always wondered that . I used gift cards ( that I had gotten as presents )to gain selling experience on ebay and they usually sold for full price .
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Old 10-12-2010, 11:06 AM   #3
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I've always wondered that . I used gift cards ( that I had gotten as presents )to gain selling experience on ebay and they usually sold for full price .
Minus shipping Ebay/Paypal costs?
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Old 10-12-2010, 11:12 AM   #4
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I've always wondered that . I used gift cards ( that I had gotten as presents )to gain selling experience on ebay and they usually sold for full price .
This is very curious. A gift card is cash with restrictions. Plus, there is also the counterfeit/fraud issue which should jack up the price somewhat.

Why would one trade cash for this at par? Anyone have an idea about possible motivations? Or are there other benfits to some gift cards, such as lottery tickets embedded or some such?

Ha
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Old 10-12-2010, 02:07 PM   #5
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I get 2% cashback in the form of "Ebay bucks" or something. So I could theoretically offer up to 2% premium vs. face value and come out ahead. Of course the value of my time, and the hassle, and restrictions, and fraud make it not worthwhile. Mrrebates.com and other cashback sites stack on top of the 2% ebay bucks, so I could theoretically get a higher % back.

I was one that used to buy thousands of $$ worth of walmart gift cards from ebay when they had the Bing.com cashback rewards. I would receive between 8 and 15% cashback on any Ebay "buy it now" purchases. Hence, I could still pay a slight premium to face and come out ahead.

I just checked my extensive tracking spreadsheet, and I purchased $6775 in gift cards and spent $6711. Most were bought at $3-20 off the face value, but towards the end when I knew the cashback program was ending, I paid $11-14 over face value, but still cleared at least $30 of benefit per $500 face value card.

In total, I received $526 in cashback plus the $64 from buying at a discount vs face. And probably another $100-200 I saved before I started tracking my purchases to the penny.

Today, I would not buy a gift card at face value from ebay unless I REALLY wanted to give it as a gift and couldn't buy it straight from the retailer/service provider.
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Old 10-12-2010, 03:38 PM   #6
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I sold a gift card on Ebay and it sold for very close to full value. I thought that was weird enough. I mean is it really worth people's time to maybe save $5 - $10 bucks, plus the increased risk of being ripped off compared to the ease of just buying the gift card from the rack at Safeway when you do your grocery shopping?
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Old 10-12-2010, 06:04 PM   #7
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I mean is it really worth people's time to maybe save $5 - $10 bucks, plus the increased risk of being ripped off compared to the ease of just buying the gift card from the rack at Safeway when you do your grocery shopping?
Apparently yes.
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Old 10-12-2010, 07:51 PM   #8
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This is very curious. A gift card is cash with restrictions. Plus, there is also the counterfeit/fraud issue which should jack up the price somewhat.

Why would one trade cash for this at par? Anyone have an idea about possible motivations? Or are there other benfits to some gift cards, such as lottery tickets embedded or some such?

Ha
Gosh...I thought that's what I was asking in the OP.......and I am very confident someone here has a rational explanation.....and only a bit disappointed that noone nailed it in the 1st 3 posts.....unless of course it is something so cool that it can't be shared with the ER masses.

Actually the example I cited for $119 appears to be a buy it now price, but there are others with active bids which are more like 2% above the card value.
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Old 10-13-2010, 06:47 PM   #9
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I was one that used to buy thousands of $$ worth of walmart gift cards from ebay when they had the Bing.com cashback rewards. I would receive between 8 and 15% cashback on any Ebay "buy it now" purchases. Hence, I could still pay a slight premium to face and come out ahead.
Bing cashback was as high as 25% for eBay "Buy It Now" purchases. As might be expected, this caused a lot of prices to be run up. In fact, some listings even referenced the Bing cashback in the listing to encourage people to buy the gift cards.
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Old 10-13-2010, 07:27 PM   #10
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Gift cards are now a favorite form of money laundering
U.S. report outlines changing money-laundering methods - Jan. 11, 2006

I cant say about Ebay , but we did have a local bunch that would recruit teenagers to buy gift cards for cash that could then be exported overseas. I talked to some stores that had noticed numerous 1000 gift cards . but the big money is in bank cash cards


Goddard said individuals possessing one of the prepaid cards doesn't have to declare if the card has more than $10,000, which they would have to do if they were carrying hard currency.
"You would think it would come under the $10,000 limit imposed under federal law, but it doesn't because the treasury has never determined a stored value card to be a monetary instrument under the federal regulations. They can take a million dollars on one of those little cash cards across the border, and even if they are stopped and law enforcement discovered it was a million-dollar card, it would not be in violation of anything. It is totally legal."


Prepaid cash cards make money laundering easy | Banking & Finance > Banking, Lending & Credit Services from AllBusiness.com

Lots of cards exchanged on Craigslist
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Old 10-14-2010, 09:27 AM   #11
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Sometimes foreigners can't purchase items online with a credit card -- gift card could solve that.

eBay Guides - Gift cards Why do Ebayers pay more than face value

eBay Answer Center: Gift cards selling for more than their ...
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Old 10-14-2010, 09:48 AM   #12
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Bing cashback was as high as 25% for eBay "Buy It Now" purchases. As might be expected, this caused a lot of prices to be run up. In fact, some listings even referenced the Bing cashback in the listing to encourage people to buy the gift cards.
Actually is was up to 35% for a very brief moment. Not too brief as to prevent me from buying a 35% off plus sales tax free computer though! This was Oct-Nov of 2008 IIRC.

People were also buying gold bullion and getting the cashback (or so I heard). Buy an ounce of gold for $1200, get $120 back in cashback, take the gold to your metal dealer and get $1150 for the ounce. Net $70.
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