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Hello, I recently moved from NY to Canada so I m trying to get rid of american gift cards on eBay which may or maynot work in Canada. I noticed on eBay most gift cards are sold very close to face value and some even more than face value. can someone please help me understand why would someone pay more than gift card is worth? and why not buy directly from the merchant specially if you are paying face value or even more to buy on eBay?
also I'd appreciate if someone can suggest an alternate to selling gift cards on eBay. are there any other websites that offer trades or privately buying and selling with less risk than selling on eBay.

i have target,toysrus,Sears,gap for $200 each. thanks for your time.

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I recently sold two gift cards on eBay. The first transaction went smoothly, but on the second one, the buyer claimed a ... (more)

CAeeGirl (Apr. 19, 2009 @ 1:56p) |

With MSLCB, you may pay more upfront but after CashBack, you can pay far less. At the height of 14% recently, paying $5... (more)

parquedematthew (Apr. 21, 2009 @ 11:16a) |

Drug Cartels are using gift cards and store value cards to smuggle drug money back and forth to Mexico, Columbia etc. So... (more)

cosmiverse (Apr. 23, 2009 @ 2:14p) |

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One reason is that people outside of the USA wish to purchase USA-based company's goods/services (and vice-verse); it's sometimes easier/cheaper using the country's own money.


There are a couple different rebate programs, so the buyer is actually paying a lower price than the advertised price. Like with all subsidies (housing credit, muni bonds, etc) the seller compensates and captures a piece of the pie.

http://www.fatwallet.com/forums/deal-discussion/888481/?start=0

I've always wondered this myself. I've sold several $5 Starbucks gift cards for more than $5. I also sold a Shell gas card & gift card to somewhere else over the amount on the card. I only sell to US customers so I have no idea why someone would pay more than the face value of a gift card when you can purchase the gift card itself for face value from the actual company or from places like Kroger/CVS/Walgreens/etc that sell other gift cards.

Always a rebate or a scam. A lot of times if the seller is sending them via regular mail without any tracking or confirmation, the scammer will just file a chargeback saying they didn't get it. After all, most sellers don't follow the guidelines of the seller protection plan, and the buyer always has the upper hand in a dispute. This is particularly common with Amazon gift cards, where the buyer can convince the seller to email the codes, leaving the seller completely unprotected. Just one of the many, many reason I don't sell on eBay anymore.

There have been cases where the purchases were made with stolen credit cards, in order to get a "legit" gift card to sell for cash. In cases like that, they don't really care if they pay over face value for the gift card. It's a way to convert stolen credit card info into cash.

CapEx said: Always a rebate or a scam. A lot of times if the seller is sending them via regular mail without any tracking or confirmation, the scammer will just file a chargeback saying they didn't get it. After all, most sellers don't follow the guidelines of the seller protection plan, and the buyer always has the upper hand in a dispute. This is particularly common with Amazon gift cards, where the buyer can convince the seller to email the codes, leaving the seller completely unprotected. Just one of the many, many reason I don't sell on eBay anymore.

If one was inclined to sell on eBay and wade through all the damn fees, what would be the best way for the seller to protect themselves? Send it tracked and confirmation delivery?

pthor1231 said: CapEx said: Always a rebate or a scam. A lot of times if the seller is sending them via regular mail without any tracking or confirmation, the scammer will just file a chargeback saying they didn't get it. After all, most sellers don't follow the guidelines of the seller protection plan, and the buyer always has the upper hand in a dispute. This is particularly common with Amazon gift cards, where the buyer can convince the seller to email the codes, leaving the seller completely unprotected. Just one of the many, many reason I don't sell on eBay anymore.

If one was inclined to sell on eBay and wade through all the damn fees, what would be the best way for the seller to protect themselves? Send it tracked and confirmation delivery?


Yep. Along with sending only to confirmed addresses, and requiring a signature for >$250. Just get to know the paypal protection policy well.

email code then mail something to buyer - get delivery confirmation (seems like with this first class package is cheapest for light items, but u have the stuff envelope to make it a "thick envelope) - always ask for positive feedback / confirmation of receipt

mt2va said: I've sold several $5 Starbucks gift cards for more than $5.
I know some people collect these, so you may fetch $5 at eBay for a card with $0 on it.

This was discussed on the Freakonomics blog. Read the comments for some good analysis.

http://freakonomics.blogs.nytimes.com/2008/06/03/how-much-would-...


Some of these gift cards are used for money laundering schemes.
http://marketplace.publicradio.org/display/web/2009/03/25/pm_val...
Instead of bring a large bundle of cash across the border, drug smugglers can use gift cards which is easier to hide and looks innocuous. They can then convert that to cash by laundering it.

From time to time, eBay offers members coupons for 10% off if you pay with paypal. In addition, for Buy It Now auctions, live.com often has promotions giving you a percentage back via a deposit in your paypal account a few months later. Right now it's at 9%. The peak I saw was the day after thanksgiving when it reached 30%. At the time, eBay had also given out some of those 10% coupons which could be combined with the live.com offer giving a total discount of 40% (I got a few good deals on that one).

LordKronos said: From time to time, eBay offers members coupons for 10% off if you pay with paypal. In addition, for Buy It Now auctions, live.com often has promotions giving you a percentage back via a deposit in your paypal account a few months later. Right now it's at 9%. The peak I saw was the day after thanksgiving when it reached 30%. At the time, eBay had also given out some of those 10% coupons which could be combined with the live.com offer giving a total discount of 40% (I got a few good deals on that one).Just looked back at my MS CashBack records. In November, when the discount often went to 25-30%, we purchased around $7-8K of gift cards (Costco, WalMart, Target, safeway), all at a premium. The net price to us was around 80 cents on the dollar. We also flipped several of them for $100 or so net per card. As you point out, the discount is down to 9% currently, so paying a premium isn't worth it to us at this point.

Yup, with MSLCB, you can get them for less than the card is worth usually. I bought a $500 gift card for $485 back when CB was 9% (on the way up) and combined it with a 10% st patrick's day coupon. I turned the card around and sold it a week or so later for $495 when CB was up to 13/14%. Mailed it first class with signature confirmation. I would definitely rinse/repeat if the opportunity ever came up again.

kjgco said: LordKronos said: From time to time, eBay offers members coupons for 10% off if you pay with paypal. In addition, for Buy It Now auctions, live.com often has promotions giving you a percentage back via a deposit in your paypal account a few months later. Right now it's at 9%. The peak I saw was the day after thanksgiving when it reached 30%. At the time, eBay had also given out some of those 10% coupons which could be combined with the live.com offer giving a total discount of 40% (I got a few good deals on that one).Just looked back at my MS CashBack records. In November, when the discount often went to 25-30%, we purchased around $7-8K of gift cards (Costco, WalMart, Target, safeway), all at a premium. The net price to us was around 80 cents on the dollar. We also flipped several of them for $100 or so net per card. As you point out, the discount is down to 9% currently, so paying a premium isn't worth it to us at this point.

I've read that a significant percentage of the gift certificates sold on eBay are fake or a scam. did you find this to be true in your experience? Seems like this could reduce your profit or, at a minimum, be a big headache to recoup your money from paypal/eBay.

I think I've seen this on FWF before. One reason is convenience and not having to pay for gas to go to the store just to buy a gift card.

bigdaddycincinnati said: kjgco said: LordKronos said: From time to time, eBay offers members coupons for 10% off if you pay with paypal. In addition, for Buy It Now auctions, live.com often has promotions giving you a percentage back via a deposit in your paypal account a few months later. Right now it's at 9%. The peak I saw was the day after thanksgiving when it reached 30%. At the time, eBay had also given out some of those 10% coupons which could be combined with the live.com offer giving a total discount of 40% (I got a few good deals on that one).Just looked back at my MS CashBack records. In November, when the discount often went to 25-30%, we purchased around $7-8K of gift cards (Costco, WalMart, Target, safeway), all at a premium. The net price to us was around 80 cents on the dollar. We also flipped several of them for $100 or so net per card. As you point out, the discount is down to 9% currently, so paying a premium isn't worth it to us at this point.

I've read that a significant percentage of the gift certificates sold on eBay are fake or a scam. did you find this to be true in your experience? Seems like this could reduce your profit or, at a minimum, be a big headache to recoup your money from paypal/eBay.


eBay sides with the buyer in almost all cases so if they were a scam, you could easily recoup your money. Whether or not most gift cards on eBay are scams, I'm not sure but I would think if it were true, it would be hard to continue. Yes, the scammers could register multiple accounts but then they would have no feedback so while I'm sure there's a small percentage, I would wager the majority are legitimate.

lampy2k4 said: mt2va said: I've sold several $5 Starbucks gift cards for more than $5.
I know some people collect these, so you may fetch $5 at eBay for a card with $0 on it.

Umm...collect? Can't they buy from the store then?

CardAvenue is another place to buy/sell giftcards.

CapEx said: Always a rebate or a scam. A lot of times if the seller is sending them via regular mail without any tracking or confirmation, the scammer will just file a chargeback saying they didn't get it. After all, most sellers don't follow the guidelines of the seller protection plan, and the buyer always has the upper hand in a dispute. This is particularly common with Amazon gift cards, where the buyer can convince the seller to email the codes, leaving the seller completely unprotected. Just one of the many, many reason I don't sell on eBay anymore.

Someone tried to do it to me. I redeemed TY pts for a $100 Amazon gift certificate. Put it on eBay. It went for something ridiculous like $130. Two super low feedback people were battling over it. I knew it was a scam. He said he didn't want it mailed...just e-mail him the code.

I told him I lost the gift certificate and refunded his paypal. A few days later, he got hit with about 5 negative feedbacks on eBay because he was scamming people...saying it was a hijacked account or something. eBay even credited my final value fee after he didn't dispute it.

bharatiya said: Umm...collect? Can't they buy from the store then?

You'd be surprised. Some are not the most current ones. So a limited edition run from the 2005 holidays might only have been going on for a couple of months. As such, the perspective buyer might not have it. Also, there are some that are region specific (ie. Hawaii & West Coast may have one particular style while the East Coast have another). So you can't always get what you are looking for from the store.

I think some people have company credit card which they are using to buy the GCs. They are authorized to buy stuff (computer parts, printer supplies, ink, etc) from eBay but who is checking to verify if the purchase is a part or a GC. But, it would look very odd if they bought the same GC directly from Amazon/WalMart/Apple.

CapEx said: Always a rebate or a scam.
Exactly. Huge gamble for hardly any profit.

Not worth it (as a seller).

parquedematthew said: Yup, with MSLCB, you can get them for less than the card is worth usually. I bought a $500 gift card for $485 back when CB was 9% (on the way up) and combined it with a 10% st patrick's day coupon. I turned the card around and sold it a week or so later for $495 when CB was up to 13/14%. Mailed it first class with signature confirmation. I would definitely rinse/repeat if the opportunity ever came up again.

I think you misunderstood. I think the OP is saying why would anyone paying $510 on eBay for a gift card of $500.

It does sound very fishy though. I simply stay away from 'fishy'. Once I was just killing time by looking up a car on eBay. $4K for an almost new Corolla that normally runs around $10K. I send message to the seller and "she" reply saying how she is now living in UK and have to sell her car quick and she want "casher check". I just laugh at that point and move on. eBay is like flea market. Sometime U get deals and sometime you get screwed.

I recently sold two gift cards on eBay. The first transaction went smoothly, but on the second one, the buyer claimed a "Unauthorized Payment" through PayPal. Luckily, I sent it Certified and with a little research, found out that the shipping address and the buyer's listed address are the same. Even after all of this, I still have to wait to see if PayPal will side with me. I always wondered why these buyers were paying nearly the same price for the gift cards.. the 2nd buyer has finally made me understand =\

TTM77 said: parquedematthew said: Yup, with MSLCB, you can get them for less than the card is worth usually. I bought a $500 gift card for $485 back when CB was 9% (on the way up) and combined it with a 10% st patrick's day coupon. I turned the card around and sold it a week or so later for $495 when CB was up to 13/14%. Mailed it first class with signature confirmation. I would definitely rinse/repeat if the opportunity ever came up again.

I think you misunderstood. I think the OP is saying why would anyone paying $510 on eBay for a gift card of $500.

It does sound very fishy though. I simply stay away from 'fishy'. Once I was just killing time by looking up a car on eBay. $4K for an almost new Corolla that normally runs around $10K. I send message to the seller and "she" reply saying how she is now living in UK and have to sell her car quick and she want "casher check". I just laugh at that point and move on. eBay is like flea market. Sometime U get deals and sometime you get screwed.


With MSLCB, you may pay more upfront but after CashBack, you can pay far less. At the height of 14% recently, paying $510 for a $500 gift card would actually cost you $438.60. In that case, the seller gets more than he/she paid (hopefully) and the buyer just got it for 88 cents on the dollar. That's the only reason I would pay more for a gift card.

Drug Cartels are using gift cards and store value cards to smuggle drug money back and forth to Mexico, Columbia etc. So they donít care how much they pay for gift cards.

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