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View Full Version : Gift Cards on Ebay (for above value)


sterlingice
08-29-2009, 09:53 AM
Ok, I understand gift cards in the most generic sense- you want to get something for someone who you don't quite know what to get a specific gift for but understand their interests: do it yourselfer at Lowes, gadget geek at Best Buy, etc.

But why buy them on ebay? Pretty much every kiosk in every store has them even for competing stores. Then again, I understand if you can't get out of the house- no transportation or something a bit more uncommon like agoraphobia or some sort of immune deficiency, etc.

So, I'm trying to order something on Amazon this weekend and I think to myself "hey, if someone were trying to quickly sell a gift card, maybe I could get one to save a few bucks". You know, it'd be something like someone getting a gift card from work or maybe credit card points or something and maybe spin that $50 gift card for $40 in cash since a gift card is limited. But for some reason, every single Amazon gift card is actually *above* the cost of the value on the card on ebay. So, for instance, a $100 gift card is going for $105!

Why would anyone do this when, say, cash or a credit card is much more flexible. And most of these are Paypal only so you had to have had a credit card or cash to actually do this. Is this some sort of money laundering that I don't know about or, simply, what's the deal?

SI

Mustang
08-29-2009, 10:45 AM
Any number of reasons, but the top reason I can think of is fraud. They will get the card, use it, claim it was empty and submit a request for a refund to paypal to get their money back and send an empty card back to the seller.

Other reasons, convenience. I will spend 20-30 minutes of my day going to the store to pick up a gift card, so I'll pay a few bucks for the convenience of not having to get off my butt.

Charity. I've seen $100 gift cards go for $150-$200 when it was a charity event.

Also, not sure how the international side works. Might be some cost savings to get a $100 card outright for $105 because maybe they can't get gift cards or there is some other issues where it would cost more than face value.

stevew
08-29-2009, 06:25 PM
Sometimes it is quicker than getting money out of paypal. Other times I'm sure fraud is involved.

I think sometimes people have ebay coupons/cash back promos.

Didn't we have this discussion here before?

JonInMiddleGA
08-29-2009, 06:31 PM
There is a money laundering component (http://marketplace.publicradio.org/display/web/2009/03/25/pm_value_cards/), not sure how much that really plays into the eBay pricing though.

More likely the appeal would be one of the fraudulent ways to use the cards.

mckerney
08-29-2009, 06:34 PM
Didn't we have this discussion here before?

Yes.

Proof of Stupidity - Front Office Football Central (http://www.operationsports.com/fofc/showthread.php?t=35703)

sterlingice
08-29-2009, 09:48 PM
Yes.

Proof of Stupidity - Front Office Football Central (http://www.operationsports.com/fofc/showthread.php?t=35703)

But that was a couple of years ago and I've slept since then ;)

SI