Buying/Selling Gift Cards Online Master Thread

[GTR]

I recently sold cards to CardCash and they debited $97 from the sale total apparently due to a buyer reporting that an Overstock card I sold to them, egiftcard, had a zero balance.  They had previously verified the balance and paid on this card (in October) and I assure you I did not use the card or otherwise give it out.

As someone who has benefited from their 45 day buyer protection I appreciate the quick reimbursement for "bad" cards.  However, being on the other side of it, and apparently the victim of either 1) buyer fraud or 2) internal fraud at CardCash, i'm beginning to become a little hesitant of dealing with all the GC re-sellers (for sales).  Unfortunate too, CardCash had become the only one I trusted.

[coralsnake]

Still waiting for my check from gift card rescue from early December, they say it's on it's way, after I emailed the ceo

GiftCardRescue is the absolute worst!

After Much back and forth I finally got paid a few weeks ago from an order in November. Still waiting for the December check.
Keep getting the same BS over and over- "Our check processor has informed us that your payment may have been delayed through their payment system. In an effort to remedy this issue please confirm if you have received your payment or if your payment needs to be reissued."

DONT EVER USE GIFT CARD RESCUE

[GTR]

Very quick response from CardCash on my issue.  Don't know how it will be resolved, it's essentially a he-said/she-said.  Unfortunately, these sites need to resolve fraud issues if they are to exist long term.

An unscrupulous seller can drain a card after they are paid for it by these sites and an unscrupulous buyer can claim a card was drained after they purchase it and drain it themselves.  If these companies are unwilling to truly stand in the middle between sellers and buyers and these parties essentially remain liable to eachother forever, it's not viable to be a seller/buyer to them (depending on which party the site protects).

What they need to be able to do is have relationships with the retailer so that they can "reissue" the cards they receive with new numbers so that they can truly protect the transaction.  However, retailers have little incentive to help out the resellers as they likely encourage otherwise fractional redemption of pre-paid purchases.

Interesting business.

[bermo]

Very quick response from CardCash on my issue.  Don't know how it will be resolved, it's essentially a he-said/she-said.  Unfortunately, these sites need to resolve fraud issues if they are to exist long term.

An unscrupulous seller can drain a card after they are paid for it by these sites and an unscrupulous buyer can claim a card was drained after they purchase it and drain it themselves.  If these companies are unwilling to truly stand in the middle between sellers and buyers and these parties essentially remain liable to eachother forever, it's not viable to be a seller/buyer to them (depending on which party the site protects).

What they need to be able to do is have relationships with the retailer so that they can "reissue" the cards they receive with new numbers so that they can truly protect the transaction.  However, retailers have little incentive to help out the resellers as they likely encourage otherwise fractional redemption of pre-paid purchases.

Interesting business.

good luck
at least its only $97 ..
its always best to sell in store gift cards..

[bermo]

DONT EVER USE GIFT CARD RESCUE

+1

[Redbull3]

However, retailers have little incentive to help out the resellers as they likely encourage otherwise fractional redemption of pre-paid purchases.

I've thought about this too. I'm not sure how I would feel about this exploding market if I were a retailer. On one hand, some people who buy gc might end up spending more at the retailer which is good for them. On the other side, some of these gc that were sold would instead have just been tossed and after a while the retailer can clear it from the books as free money.

[avromie7]

after a while the retailer can clear it from the books as free money.

-1 it's still a liability for them until it's used and does not count as profit. All they get from it is an interest free loan.

[MarkS]

I've thought about this too. I'm not sure how I would feel about this exploding market if I were a retailer. On one hand, some people who buy gc might end up spending more at the retailer which is good for them. On the other side, some of these gc that were sold would instead have just been tossed and after a while the retailer can clear it from the books as free money.

Nope. The retailer already has the gift card on their books as a liability and can't recognize the revenue until it is redeemed.

Basically, they received cash and have an outstanding liability that they would rather just turn into revenue by completing the sale.

http://nypost.com/2014/01/26/unused-gift-cards-total-44b-since-2008-study/

[Redbull3]

-1 it's still a liability for them until it's used and does not count as profit. All they get from it is an interest free loan.

They usually don't have an expiration, in that case you're telling me they never write them off?

[avromie7]

They usually don't have an expiration, in that case you're telling me they never right them off?

FWIU that is correct

[Redbull3]

Nope. The retailer already has the gift card on their books as a liability and can't recognize the revenue until it is redeemed.

Basically, they received cash and have an outstanding liability that they would rather just turn into revenue by completing the sale.

http://nypost.com/2014/01/26/unused-gift-cards-total-44b-since-2008-study/

Got it. Find that odd. Wonder if it's a legal thing.

[GTR]

I'm not sure that all the companies would rather close the liability by completing the sale...

Surely, there is some benefit from allowing a liability to age and there must be some accounting convention to recognize a benefit from an unrealized liability.

[dovy2]

Stay away from card cash.. Unless you're selling them a gc you yourself bought from the issuer.. In their terms all the way in the end, they write that's it's not allowed.

[MarkS]

Because of the credit card act in 2009, Gift Cards can't expire for 5 years (although there can be inactivity fees).

While one of us may think it's better to sit as a liability for 5 years and then expire and never come to the point of having to 'give up' merchandise, a company would rather remove the liability and generate the sale.

Imagine these liabilities piling up to a significant amount. The only positive is that they received cash and didn't have to give anything for it. The company would rather convert the liability to a sale which looks a lot better on their financials than increased cash (with an accompanying liability).

[MarkS]

For Target for example, as of 1/31/15 they have $609,000,000 in un-redeemed giftcards.

Their policy is that gift cards never expire. That means the number will only grow larger over time unless gift card redepmtion starts going up....

[GTR]

Looks like some states also require escheatment of abandoned cards.  So regardless of some amount of breakage that companies can recognize as forgiven liabilities (looks like most are after 4/5 years), they often don't even get to keep that $$, it goes to the state.

Anywho - while were were talking CardCash seems to have found that they are going to refund my $96 (it wasn't $97 my bad).  They didn't really give me an answer as to why, or if there is any protection to the sellers from BUYER fraud.  However, it looks like they are just going to eat the cost in the name of good CS and to keep me loyal.  So good on them for now!  Thanks CardCash!

[Redbull3]

For Target for example, as of 1/31/15 they have $609,000,000 in un-redeemed giftcards.

Their policy is that gift cards never expire. That means the number will only grow larger over time unless gift card redepmtion starts going up....

I wonder what would happen if they theoretically went out of business with $609mm unredeemed.

[username]

Depends what happens. If they go bankrupt, cardholders will lose. If they get bought out, than YMMV.

[lunatic]

GiftCardRescue is the absolute worst!

After Much back and forth I finally got paid a few weeks ago from an order in November. Still waiting for the December check.
Keep getting the same BS over and over- "Our check processor has informed us that your payment may have been delayed through their payment system. In an effort to remedy this issue please confirm if you have received your payment or if your payment needs to be reissued."


+ 10000000000000000000000000000000

Stay away from them. Far away. Google it, you will find many stories

DONT EVER USE GIFT CARD RESCUE

[Jay s]

Anyway to reach cardcash on Sunday's