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I have the chance to purchase a lowes, homedepot, or Bestbuy gift cards at a 20 % discount from a person who will use his credit card to buy the gift card and then I pay them 80% of face value.

My question is how do I prevent them from doing a charge back or saying the gift card was lost or stolen? Is there anything I can do after the sale to prevent this? Thanks

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Theres a guy here in the local Orlando craigslist that regularly sell Lowes gift cards for 80% of its value and he throw... (more)

ctrain (Jun. 21, 2010 @ 2:12a) |

They can track that back to the GC, and invalidate the $400 store credit, unless you returned the items without receipt.... (more)

SUCKISSTAPLES (Jun. 21, 2010 @ 2:25a) |

Could someone edify me on how some FWF'ers are making a profit selling millions in gift cards? Are they buying the card... (more)

Kanosh (Jun. 21, 2010 @ 8:51a) |

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.
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Becareful buying it from that person. Most likely he's using a stolen credit card number, so you might be screwed if they do a charge back for illegally purchased goods

Why would anyone do that for you? Sounds too good to be true, so it is.

I believe its because they need cash fast for bills. I would be at the store to see the purchase so, I would verify they own the credit card (ie, it's in their name) before I pay them.

For some protection, you can immediately buy a new gift card that the seller can't cancel. Of course, if CC fraud is involved, that won't stop the store from canceling the new one too.

If the store is one of those that have a policy against buying gift cards with gift cards, then buy something and immediately return it for a new gift card.

If the seller is that desperate for money, he would just get a cash advance on his credit card rather than go through the trouble of buying and selling gift cards at an over 20% loss. I'd stay away.

Better idea: Since you both will be at the store, load up a shopping cart with stuff you want, have your friend buy it with his credit card, then pay him 80% of what he paid and take the stuff. Why mess around with gift cards?

Edited to add: Agree with mapen. The cash advance fee is 3% to 5%, why screw around with 20% off of gift cards. If something illegal is going on, even if you don't know anything about it, the police are going to start with the assumption that you were an accomplice and let you convince them that you were just a dupe.

nm

I have bought a $360 lowes gift card for about $260 from a person off craigslist. I met the man at the store to verify the amount. He left and I purchased something with it and returned the item for a new gift card. I was hoping to get a larger amount to be used over time such as $1000 gift card. It is harder to do the purchase/return on this amount and I don't have a direct need to spend it all at once. Thus trying to figure out a way to protect myself.

As to why someone would take a 20% loss instead of doing a cash advance who knows why someone would do it. It is also possible they have a limited amount available for cash advance and they can get more by buying a gift card. At a 20% discount they have many buyers.

It makes sense that people stuck with gift cards for a store they don't intend to make a purchase at would sell on Craigslist or eBay for 20% off. But your seller is suspicious because you say he is using a Visa to buy them brand new.

Either it's not his Visa card, or he is a contractor and is able to pass off The Home Depot or Lowe's purchase on as a business expense or is able to pass the charge off to a client. Maybe it's a company Visa or US Government GSA Visa or some such.

slowride said: I have bought a $360 lowes gift card for about $260 from a person off craigslist. There's a difference between someone who is stuck with a gift card he doesn't want and someone who is going to make a special trip to the store to buy a gift card for the sole purpose of selling it for a loss.

I also wonder why this person only specified those three stores. Wouldn't it be just as good to sell a safeway, Target, or WalMart gift card?

Edited to add: Posted before I saw mapen's response.

I believe it is a lowes credit card.

Plus a lowes or Home Depot gift card is what I am interested in getting.

The why someone would do this I don't care so much about. I just need to know a way to make it safe for me.

Thanks for all the replies so far.

So is this a regular thing with the same guy, or different people?

slowride said:
The why someone would do this I don't care so much about. I just need to know a way to make it safe for me.
Well, here is some educational material.

Additional information.

At Costco you can buy the gift cards at 20% off...

To answer the OP's question...

If the person reports his card as stolen, then it can possibly be traced back to you. I don't know the odds if it happening, but it is possible. Of course we don't know that is the seller's intent. Is 20% worth that risk?

I've given police specific instructions on how to catch a thief who stole from me and they failed to follow through. (i couldn't do it myself as I was told I needed to be a police officer)

My logic: if something sounds to good to be true, it usually is!

slowride said: I have the chance to purchase a lowes, homedepot, or Bestbuy gift cards at a 20 % discount from a person who will use his credit card to buy the gift card and then I pay them 80% of face value.

My question is how do I prevent them from doing a charge back or saying the gift card was lost or stolen? Is there anything I can do after the sale to prevent this? Thanks

The only way to make it safe is to use them immediately. Either on new gift cards or merchandise. Merchandise might be able to be returned for a new gift card.

Some lessons I've learned:
*REI and Cabelas (guns) let you buy new gift cards with gift cards... I've bought some shady ecards off eBay and still have their value thanks to this.
*Amazon gift cards are the worst; don't but them until Amazon fixes their policy. Even after you "redeem" them into your account the original purchaser retains the right to cancel and Amazon will tell you to go fly a kite...

Worse, I think the Amazon cards have evolved into a rather sophisticated business, where script kiddies monitor the card #'s value in real time... The only way to secure Amazon card value is to make an order of the entire gift card, then return the merchandise, which you will have to pay shipping on.

EDIT: come on folks, let's not assume this is fraud... Just a month ago Chase was running 20% of Lowe's cards... As I'm sure we all know, most credit card rewards programs give you much more gift card per point than currency.

I would not knowingly purchase a gift card that was purchased using a stolen credit card. As I said before I would verify the person buying the card used his credit card. I am more concerned with him reporting the cards lost or stolen.

I have bought the 1800Flowers gift cards at costco at a 50% discount a couple of months ago. Costco does not sell discounted gift cards to lowes or homedepot.

Over a period of a few years I have watched various individuals offer to do this via craigslist but, I have only purchased gift cards that have an odd balance so far.


Keep it coming guys. Thanks for all the ideas.

Why would knowingly lose 20% of my money?

1) If I was planning to default on my credit card payment ....leaving the country etc.
2) If I found someone else's gift card (picked it up and WOW it has $$$ on it), but I want cash
3) I'm using a stolen credit card or committing some other fraud
4) I know you're holding a lot of cash and I'm going to stalk you...(I've watched too much CSI/Criminal Minds/ etc..)

OR

Good situations
-=============-
1) I'm buying the gift card at a discount myself, getting bing 10% CashBack or something and actually turning a profit.
- In which case figure out how to do this yourself
2) I just want cash from gift cards sitting around and I'm taking the loss.
3) I got the gift card as a gift, so I didn't pay for it and I just want cash.



...Assess all the possible situations and live with the results...

mapen said: If the seller is that desperate for money, he would just get a cash advance on his credit card rather than go through the trouble of buying and selling gift cards at an over 20% loss.Nobody's taking a loss on this. There are various Dealpass and Dealpass-like programs that sell gift cards to a wide variety of stores, gas stations and restaurants at a 20% discount (plus you still get your credit card CashBack). Many of us have been using these programs for years, as they are quite profitable since they allow you to combine these discounted gift cards with various coupons for fantastic savings.

Now, none of this means that it's safe to buy discounted gift cards from people you don't know. Having said that, there are a number of private trusted networks that are set up for people to sell and/or trade their discounted gift cards without worrying about scams. It's not unusual for these types of trusted network transactions to be in thousands of dollars.

A lot of FW members have by now gone through 6 figures in discounted gift cards... some people around here are way in the 7 figure range. Do people seriously think that a lot of us spend time on FW to only engage in silly debates and to take advantage of an occassional $100 signup bonus or to buy a few coins from Mint? Many of us consistently make/save tens of thousands of dollars each year through some of the less known strategies discussed on FW and using discounted gift cards is a small part of that.

LOL, geo123... you expect us to believe that people on FWF are moving MILLIONS in gift cards?... elaborate, please, because that sounds absolutely ridiculous.

JTFH said: LOL, geo123... you expect us to believe that people on FWF are moving MILLIONS in gift cards?... elaborate, please, because that sounds absolutely ridiculous.I don't know anyone who moves millions in gift cards, but I do know at least 2 FW members who've at this point done over a million dollars worth of gift cards and AMEX charge cards (for the record, I am not one of them).

geo123 said: mapen said: If the seller is that desperate for money, he would just get a cash advance on his credit card rather than go through the trouble of buying and selling gift cards at an over 20% loss.Nobody's taking a loss on this. There are various Dealpass and Dealpass-like programs that sell gift cards to a wide variety of stores, gas stations and restaurants at a 20% discount (plus you still get your credit card CashBack). Many of us have been using these programs for years, as they are quite profitable since they allow you to combine these discounted gift cards with various coupons for fantastic savings.

Please read what the OP said here:I would be at the store to see the purchase so, I would verify they own the credit card (ie, it's in their name) before I pay them.

We are not talking about some giftcards that he got for his birthday that he doesn't need.
We are not talking about BLING CashBack schemes.
We are not talking about giftcards bought through some discount web site.
We are not talking about dealpass.

The OP says he is going to Lowes and going to watch this guy purchase giftcards in person at the store. He says he is even going to check the physical credit card the guy is using as it is being purchased. In another post he is even saying the guy is going to use a Lowes credit card.

If you know a way to purchase millions of dollars of giftcards for more than 20% off in person at a Lowes store, please share with the OP. He could then do it himself and not risk dealing with some stranger he met on Craigslist.

I can not think of a legitimate reason that an "above the counter" reasonable person would want to make a trip to a store (with a stranger in tow) for the sole purpose of purchasing gift cards to then immediately turn over to said stranger for 80% of their value in cash.

So what if the credit card is "in their name". Do you think that can't be faked? If I tell you my name is Imagon Nascamya and I show you ID and a credit card with the same name, are you really going to believe I am who I say I am?

Imagon Nascamya: "Hey buddy, if you give me $80 cash, I'll buy you a $100 gift card at Lowes with this here credit card that I GAR-UN-TEE is mine. See this? (show's card) That's my name right there. You in?"

riznick said: At Costco you can buy the gift cards at 20% off...
Really? Target? Home Depot? Where is the selection posted, I might have to look into this . . .

TYTIE

Geo, where are you currently trading/selling? I'm looking to unload my HD (cAve is kaput).

TYT

JTFH said: The only way to make it safe is to use them immediately. Either on new gift cardsThat is safer but not completely safe. When outright fraud/theft/stolen CC is involved, the risk management department of stores CAN and WILL trace back and cancel all new gift cards and merchandise credits generated from those compromised giftcards. I have seen this happen; I am not guessing.


The only "safe" way is to buy physical merchandise, store it in your garage for 60 days, return it within Lowes 90 day return policy, and after that return, immediately use the Merchandise Credit for more physical merchandise. And so on, and so on. DeWalt and PorterCable tools come to mind as expensive and small.

lastgaspjr said: Please read what the OP said here:I would be at the store to see the purchase so, I would verify they own the credit card (ie, it's in their name) before I pay them.

We are not talking about some giftcards that he got for his birthday that he doesn't need.
We are not talking about BLING CashBack schemes.
We are not talking about giftcards bought through some discount web site.
We are not talking about dealpass.

The OP says he is going to Lowes and going to watch this guy purchase giftcards in person at the store. He says he is even going to check the physical credit card the guy is using as it is being purchased. In another post he is even saying the guy is going to use a Lowes credit card.
I interpreted the OP's posts as meaning that that's what the OP wants to happen, not that the seller proposed doing this. If the seller has agreed to this, then I agree that it makes absolutely no sense. I just saw it as too much of a coincidence that the GC's being offered to him are to Lowe's, which are some of the most widely available GC's, and are being sold at 80%, which is the exact percentage at which you can buy discounted GC's through Dealpass and Dealpass-like sites.

There are no current DealPass sign up links anymore.

There are some non-DealPass programs that allow you to purchase a measly $50 worth per month, but even those require snail mail or CSR invitations. You cannot just click a link or call a CSR to sign up.

TYTBUDGET said: riznick said: At Costco you can buy the gift cards at 20% off...
Really? Target? Home Depot? Where is the selection posted, I might have to look into this . . .

TYTIE
Nope, Costco sells 20% off GC's to places like Ruth's Chris (which, by the way, is a very good deal if you combine them with Ruth Chris' $39/person 3 course menu) and various restaurant chains, along with places like SpaFinder. Costco also offers a seasonal selection of discounted gift cards to various regional attractions and national hotel chains.

slowride said: The why someone would do this I don't care so much aboutGreat, have fun

geo123 said: Nope, Costco sells 20% off GC's to . . . various regional attractions and national hotel chains.
Alas. Geo where r u trading now? PM me if u want.

TYTIE

xoneinax said: There are no current DealPass sign up links anymore.Correct, although some people are still members of old Dealpass programs (including non "+" programs).

There are some non-DealPass programs that allow you to purchase a measly $50 worth per month, but even those require snail mail or CSR invitations. You cannot just click a link or call a CSR to sign up.That's actually incorrect. There are non DP programs that allow you to purchase larger quantities per month (although I don't know any that allow you to purchase thousands of dollars worth, like you could just a few months ago) and you can join through links, without contacting anyone. Some of those same non DP programs actually offer additional deals that are more valuable than just the discounted GC's.

I am not even in the vicinity of some of the heavy hitters out there in terms of the way that I use discounted GC's (I've never bough GC's to sell them, although I have traded thousands of dollars worth of them but still not even close to the volume that many people do) but for years now I haven't bought a single thing at Lowe's, HD, Babies R Us, Bed Bath and Beyond, Macy's or many others without discounted GC's. The same can be said about our gas purchases at various gas stations, although we've been somewhat lazy about it lately. For a few years I could say the same thing about Amazon, but, unfortunately, that ended fairly recently.

geo123 said: I've never bough GC's to sell them, although I have traded thousands of dollars worth of them. . . . For a few years I could say the same thing about Amazon, but, unfortunately, that ended fairly recently.
Yes, me too geo. Do much better trading. I cancelled my SE when they dropped Amázon, but not before I got one last $500 Walgreens (flipped for Shell). Lately I've been doing my annual $2500 (Buysmart, or whatever its unmemorable name is now) almost exclusively on Target. When there's a full moon, an exhausted store manager, and an indifferent cashier I manage to sneak the odd Sears and Starbucks at Kmart, but it's not a pretty experience heh.

TYTIE

geo123 said: That's actually incorrect. There are non DP programs that allow you to purchase larger quantities per month (although I don't know any that allow you to purchase thousands of dollars worth, like you could just a few months ago) and you can join through links, without contacting anyone. Some of those same non DP programs actually offer additional deals that are more valuable than just the discounted GC's

In another thread people mentioned various programs, and they all have some sign up links scattered around the InterWorld. But you are limited to 4 plastic $25 cards per month. (not $100 per store, but just $100 per membership per month)

TYTBUDGET said: I cancelled my SE when they dropped Amázon...I was never a member of SE, but had plenty of SE+ memberships. SE+ dropped Amazon a while ago. VP is what had Amazon for the last couple of years, and at $500 a pop, which was sweet. That ended just a few months ago and I have yet to come across any other source that has Amazon.

slowride said:
My question is how do I prevent them from doing a charge back or saying the gift card was lost or stolen? Is there anything I can do after the sale to prevent this? Thanks


1) It will take some time to do the chargeback. You need to use the card within that window.

2) You can buy stuff now.. Even stuff you don't need - stuff within return policy guidelines can be returned to the store for store credit. I don't think they'd track it back to originally purchased with a charged back gift card, as the receipt isn't needed for store credit (last time I checked).

This topic should really be "How to benefit from someone else's scam, for fun and profit"..

:sigh: EXAMPLE: I have 40,000 thankyou points. That gets me $400 in gift cards, or $250 in cash... Can you see why someone might want to sell gift cards for 80% face now?
NotSoHard said: This topic should really be "How to benefit from someone else's scam, for fun and profit"..

I'd like to hear more about ways to profit with gift cards from FW members.

I personally have a steady supply of gift cards which I sell for 92 cents on the dollar. I can get pretty much anything, so if anyone knows a more profitable way for me to offload my gift cards then I'm all ears.

Skipping 17 Messages...
Could someone edify me on how some FWF'ers are making a profit selling millions in gift cards? Are they buying the cards with credit card points, then selling them for cash, then making more credit card purchases for points? Is that the general idea, or is it something else altogether

Asking for curiousity only. This whole topic is giving me the creeps regarding doing anything with a gift card, ever.



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