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Maybe I am just naive but it seems every AMEX, Visa, Mastercard gift card for sale on eBay sells for up to 25% OVER face value.

Am I missing some big financial killing here? Are people just THAT stupid? There must be a logical reason these cards sell for over face value. First thing I though of was money laundering but at average $100 face value per card it wouldn't be worth the effort.

There was a $100 AMEX Gift card already bid up to $124.00. What am I missing here?

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And not having to deal with the headache of buying from a seller who may have obtained the GC illegally, is icing on the... (more)

newbietx (Apr. 14, 2011 @ 9:05a) |

Rewards programs do not lower prices. They merely redistribute the share of risk which raises the total price.

To the sa... (more)

axiom (Apr. 14, 2011 @ 9:31a) |

Thank you for asking this question OP! After reading a few threads on here the other day I went to e-bay to see if there... (more)

angelaira (Apr. 14, 2011 @ 10:02a) |

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I have no idea what sort of coupons/discounts would be available now (other than credit card Cash Back and sometime eBay bucks), but a few years back people were getting 25-30% back from bing.com for their eBay purchases, and you could sometimes combine that with an extra 10% eBay discount. That would make overpaying worth it. I'm not aware of any deals that good anymore.

Then again there's always just the eBay bid-war stupidity that makes people lose track of just how much they're bidding.

WTF, I thought you were crazy till I just went and looked! $500 gift cards selling for $560! $100 cards selling for $130!!!!!! That's 30% higher than value. I have no idea why, but I have $1800 in Visa gift cards from credit card points I cashed in... I might list them on there instead of using them.

-Josh


Wooooooooooooooooo
Disclaimer
You guys take checks?

Ok, here's one that provides a little clarification:
http://cgi.ebay.com/500-Costco-Cash-gift-Card-9-Back-Free-Ship-w...

You are bidding on a new Costco Cash Gift Card for $500, you don't need a costco membership card to use this at the pump or in the store. Between the other two Cash Back sites (e is 3% and mr is 5% right now!) and eBay Cash Back you can save up to 9% ($48.60 off!)and get this cheaper. Please email with any questions.

$500 gift card that sold for $540.01, so with 9% Cash Back that comes to $491.41. Add in some credit card Cash Back and you can make a few bucks. Also, if you sign up for some of those credit cards where you get a big bonus for spending a large amount in your first couple months, I could see people doing this to get the reward and not really have to actually do the spending so quick.

Edit: I'm taking the seller at his word on this. I don't really know if you can stack all 3 of these rebates or if there are any limitations on them.

I've wondered the same idea for over a year now. It's in several things no only AMEX and visa cards, but also gift cards from WalMart or also 100 new $1 Dollar bills go for $125.

I know that you can get 2% in eBay bucks and %5 mrrebates but it still does not add up.

I've asked this question many time to see if I could get in the action but no one has been able to answer my question.

I think it must be some sort of scam, but I can't really be sure. Buyers using stolen credit cards maybe?

I'm also thinking some buyers may have one-time promotions or rewards (paypal/eBay) to use up but there is no merchandise they want on eBay, so they cash it out this way. I know that alot of gift card buyers on eBay are also scammers who later do frivolous paypal chargebacks, so they don't care how high the bids go at that time as long as they get the easy target (who isn't following paypal seller protection rules). It is amazing how long they go unnoticed because once they've paid, they can only be left positive feedback, end of story.

What I've always figured

Step 1: Steal crap
Step 2: Sell on eBay, collect on paypal
Step 3: Buy gift cards, ship to PO address

Tada, a setup that makes it much easier to wash your illegally gotten gains

I actually sent a message to one of the sellers awhile back - they were selling Amazon gift cards for 10% more than the face value (see if you can find any BELOW face value being offered) - and he told me some people are so lazy they will pay the extra amount to not go out and buy one at the store! Go figure.

To the Cash Back from clicking through a rebate site, eBay bucks, add the rebate from your credit card. If you have a FKA Charles Schwab card, now a not co-branded FIA Card Services cards, or the Fidelity card that deposits into a retirement account, you are still getting 2% back, for now anyway.

Some people also pay more than value because they need to get rid of their paypal money.

bj2757 said:   I actually sent a message to one of the sellers awhile back - they were selling Amazon gift cards for 10% more than the face value (see if you can find any BELOW face value being offered) - and he told me some people are so lazy they will pay the extra amount to not go out and buy one at the store! Go figure.
And we blame the money lenders for the housing crisis

raideral said:   Some people also pay more than value because they need to get rid of their paypal money.

why not get it deposited for free into a linked bank account or request a check for a very nominal fee (like $2 or something).

get rid of their paypal money? Why dont they just cash out?

raideral said:   Some people also pay more than value because they need to get rid of their paypal money.

Is there a reason those folks can't transfer the money to their bank account????

What is so hard to understand?

Between CashBack sites, people draining stolen cc or stolen paypal accts, and simple bidding wars, there is a healthy market supporting the overfacevalue auction prices

WantTheBest said:   raideral said:   Some people also pay more than value because they need to get rid of their paypal money.

Is there a reason those folks can't transfer the money to their bank account????

adaminbremen said:   get rid of their paypal money? Why dont they just cash out?
My wife opened a paypal account and received money there not knowing she would not be able to link it to our bank, because it was already linked to mine. So that money is effectively blocked. Check withdraws take 1-2 weeks and cost $1.50, so we may as well liquidate it faster.

Drug money?

trex005 said:   WantTheBest said:   raideral said:   Some people also pay more than value because they need to get rid of their paypal money.

Is there a reason those folks can't transfer the money to their bank account????

adaminbremen said:   get rid of their paypal money? Why dont they just cash out?
My wife opened a paypal account and received money there not knowing she would not be able to link it to our bank, because it was already linked to mine. So that money is effectively blocked. Check withdraws take 1-2 weeks and cost $1.50, so we may as well liquidate it faster.


she could send it to your account as a personal gift. yep, you can do that.

Maxing out their credit cards before they strategic default/ bankruptcy

People from other countries can use them to purchase goods when other options aren't available to them.

So they are going to use paypal to buy a costco and order stuff shipped to the Dominican Republic? Excluding the negative sum game of paypal and forex fees, I don't follow you.

kath27 said:   People from other countries can use them to purchase goods when other options aren't available to them.

No what he's saying is that foreigners can't buy visa/mc prepaid cards that work on most USA websites

They cant just buy AMEX gift cards like we can in the usa . They have to use eBay /paypal to buy them. There is no online way for foreigners to buy them except eBay

There's a demand for these products on multiple
fronts - mainly by scammers and fraudsters converting
hot cc to legitimate gc , but many legit reasons too as detailed already

trex005 said:   WantTheBest said:   raideral said:   Some people also pay more than value because they need to get rid of their paypal money.

Is there a reason those folks can't transfer the money to their bank account????

adaminbremen said:   get rid of their paypal money? Why dont they just cash out?
My wife opened a paypal account and received money there not knowing she would not be able to link it to our bank, because it was already linked to mine. So that money is effectively blocked. Check withdraws take 1-2 weeks and cost $1.50, so we may as well liquidate it faster.
There are dozens of banks that offer free checking. All she needs to do is open a free checking account.

I was dumbfounded as well when I recently put up for auction a StraightTalk $45 card (I got it out of the blue) which sold for more than its nominal value ($48). And while there was a bidder with zero rating, the winner had 100%. Still I spent the money for physical delivery instead of just e-mailing the code.

I remember this topic has been discussed here before. I used to sell gift cards on eBay. And let me tell you that most of those bidders who go over the actual amount of the gift card are scammers. They bid higher because it's not their credit cards they'll be using. It's either a stolen credit card or they want the gift card shipped without a tracking number, especially overseas.

mikejensen said:   I remember this topic has been discussed here before. I used to sell gift cards on eBay. And let me tell you that most of those bidders who go over the actual amount of the gift card are scammers. They bid higher because it's not their credit cards they'll be using. It's either a stolen credit card or they want the gift card shipped without a tracking number, especially overseas.

I think there is a simpler answer than blaming scammers.

When Bing was paying 8%, you could get that rebate plus 3% for Mr Rebates plus another 2% for the Schwab credit card and another 1%? of eBay bucks.

What is missing from this thread is the real question.

Now that Bing is gone, who is giving eBay rebates that justify the high prices being paid for these gift cards?

That answer to that question could make us some money.

Maybe we should become giftcard sellers then? Buy giftcards at facevalue or at a discount, then sell them on eBay for a profit.
Not bad!

The real question is how can we sell GC without the risk of selling to a hot CC??

TheThinker said:   Maybe we should become giftcard sellers then? Buy giftcards at facevalue or at a discount, then sell them on eBay for a profit.
Not bad!


Between eBay fees/paypal fees your over 10% on fees. + shipping costs, insurance and you looking at needing things to sell about 12% face value, currently it seems some of those GC are doing that, but your risking getting scammed, not sure what the scam rate is, but you need to be under 10% or so if you getting 20% over face value to really break even.

Buying gift cards is a mega-PITA if you're not careful... I don't buy from anyone that doesn't have years of positive feedback selling a variety of items.

I learned this after I bought a $500 gift card, 20% under face, only to find out it was purchased with a stolen credit card, mailed out of an address on the MLS... Retailer's (Cabelas) online balance check said all was well, but jumped on my accusingly when I went to redeem it.

All kinds of run-around, a police report, and following Paypal's random requirements to the letter led to a rejected claim... Mailed my stuff of to FIA, who had it fixed a month later. Thanks FIA

TheThinker said:   Maybe we should become giftcard sellers then? Buy giftcards at facevalue or at a discount, then sell them on eBay for a profit.
Not bad!


Isn't eBay's final value fee just under 10%?

ls7corvete said:   The real question is how can we sell GC without the risk of selling to a hot CC??

I would put it up on eBay, as the buyer pays eBay via paypal options, and if eBay accepts a hot cc for payment, it isn't your problem, you get paid anyway (unless they have some method of informing you before you mailed out the card). If you have experience that when a buyer makes a paypal payment (as eBay now requires paypal as the method of payment, except for a very few categories), and the credit card charge turns out to be fraudulent, eBay steals the money from the seller, please let us know as we know not to sell on eBay anymore.

Another use for people out of the country is purchasing electronic deliverables like ebooks and music when there is a residency lock on the file. (recently there has been a push in ebooks -- where the rights to sell ebooks are attached to print rights even when the foreign book publisher doesn't offer an ebook version)

Its common for buyers in other countries to use US cards in cases where they can't fund via paypal. Some sites would let a foreign card as long as it had a US address filed to it -- but some were based on the card.

Most of the folks I know who use this method have a reloadable card that can be reloaded either via paypal or a foreign account in some manner. (registered to some relatives house in the US)

Thats one reason iTunes cards from other countries are so popular. It gets around geographical restrictions.

It's pretty hard to make a decent profit off of anything you sell on eBay anymore. Pretty much has to be a small pricey item that you get for a significant discount. We need a competitor.

1: Bid $150 for a $100 GC.
2: Get it in the mail.
3: Claim that it does not have any money on it.
4: Get your $150 refunded from eBay.

caramelito said:   1: Bid $150 for a $100 GC.
2: Get it in the mail.
3: Claim that it does not have any money on it.
4: Get your $150 refunded from eBay.


Not sure if you are being serious, but wouldn't it be a simple matter for the seller (and eBay) to look at the gift card's history and determine that it was spent down after delivery was made to you?

I bought a gift card on eBay once. Seller sent it with delivery confirmation. When I opened the envelope there was no card.

Paypal refused to refund the money because there was delivery confirmation and seller proved it was delivered.

About 40 of us got scammed the same way judging by the negative feedback that hit the sellers account.

When I brought it to the attention of Paypal, they eventually refunded my money, many weeks after the purchase.

Skipping 63 Messages...
Thank you for asking this question OP! After reading a few threads on here the other day I went to e-bay to see if there was a discount if I bought a gift card on there, I was shocked by the cards going for at least 20% over face value... I stopped selling on e-bay eight years ago after getting scammed by a bad check, and have refused to pay for purchases where the shipping turned out to cost 600 times the price of the item... I am in awe that e-bay and paypal get away with running a site where there is so much fraud.



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