How Can Gift Cards Sell For Over Their Value

Here is a common question, appearing in several formats. One version runs as follows: I see Amazon gift cards on eBay right now that are selling for better than the value of the bankcard. Why is this? l do not it. If i go on the Amazon web site, I pay the card's face value purchase a gift card. If I go to Wal-Mart, I pay $ 10 for a ten dollar card, that sort of logic don't understand why people makes sense a premium on eBay, and pick the same card for over its value?

This has me confused. I know of people donating their gift cards for disadvantaged kids, and so i know of people buying their gift cards on the cheap from the second-hand market. (The websites Plastic Jungle, ABC Gift Cards and CardCash, among others, spring in your thoughts.) But for people to spend more than the value belonging to the gift business card? Hey, we can really make it big! We can sell our $20 gift certificates for $25, then buy a $25 one and sell for $30 factors why you should you know it, i am sure looking into some nice beachfront premises. Something tells me this ain't for real...

My Theory:

Let me suggest my theory. It isn't fancy nor does it dabble in conspiracies, however all I came up with; Perhaps these bidders are using automatic software that ups the bid. It could be that they are in cahoots with the seller, or that these are seller, together with their object is to maximize the bidding. However since the automated software cannot differentiate between some object of indeterminate value and a pre-balance credit card with an obviously limited value, this ridiculous scenario ensues.

What Comes about when these Guys Win?

The question in my mind is method called when they win the auction, and win it they certainly will, - because there's no-one to in their right mind will outbid them - do they need to pay exactly what they bid? Will this be perhaps a business model; Buy gift cards in low demand and resell it on eBay for the full face value or lots more?

Research:

Rolling up my sleeves, I tried to get towards bottom of this. I found that it's normal that gift cards sell every one of the their estimate. And that the reasons are usually legitimate and non valid. A good reason can be a person too lazy to go out to a put. They will overpay to save on the gas costs as well as the bother. Earlier onset arthritis . want to locate the money coming from an account that doesn't allow them easy see. A PayPal account that has no bank account attached constitutes a example of an individual who may also use gift cards as simple of extracting their money from their account.

Less legit is that drug runners and terrorist groups looking for ways managed money incognito will use gift cards - 10000 dollars' worth at an occasion - like a harmless-seeming venue to do so. They will buy up prepaid cards as a monetary vehicle. In the border the officials might ask you the way much money you have with you, but turn to investigate the gift cards in your wallet? And also so they will pay a premium if need be, to able to get the send.

What is especially unsettling is the scammer layouts. Some people will bid $120 on the $100 gift card because they never intend to pay. They'll put in the valid credit card, and claim with the idea to never have obtained the card or with regard to had been used up already. eBay will typically refund consumer. Now the buyer has the goods, presently there is little you will do to prove that the actual you shipped was unused.

What To Do:

What can you do about this? In essence, the eBay experience is predicated on trustworthiness. If a buyer or seller abuses their position, they will forfeit the skill to trade on that plan. Therefore, you need to look at if the person would care about that. With the amount of feedback the customer has and in case it is all positive. When have done business a while on eBay they are less likely to jeopardize their ratings to obtain a few big ones. In addition, their good track record also supports the trust you can have in that person. Someone new overbidding, however, is suspect. Also, try getting eBay insurance to cover a chargeback, and implement as many security mechanisms as they afford you.

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