Gift Cards on Ebay (for above value)

sterlingice · 08-29-2009, 10:53 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, 11:45 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, 07:25 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, 07:31 PM

There is a money laundering component, 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, 07:34 PM

Quote:

Originally Posted by stevew

Didn't we have this discussion here before?

Yes.

Proof of Stupidity - Front Office Football Central

sterlingice · 08-29-2009, 10:48 PM

Quote:

Originally Posted by mckerney

Yes.

Proof of Stupidity - Front Office Football Central

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

SI

08-29-2009, 11:45 AM	#2
Mustang Grizzled Veteran Join Date: Oct 2000 Location: Wisconsin	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. __________________ You, you will regret what you have done this day. I will make you regret ever being born. Your going to wish you never left your mothers womb, where it was warm and safe... and wet. i am going to show you pain you never knew existed, you are going to see a whole new spectrum of pain, like a Rainboooow. But! This rainbow is not just like any other rainbow, its...

08-29-2009, 07:31 PM	#4
JonInMiddleGA Hall Of Famer Join Date: Nov 2000 Location: Behind Enemy Lines in Athens, GA	There is a money laundering component, 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. __________________ "I lit another cigarette. Unless I specifically inform you to the contrary, I am always lighting another cigarette." - from a novel by Martin Amis

08-29-2009, 07:25 PM	#3
stevew Hall Of Famer Join Date: Dec 2003 Location: the yo'	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?

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