Selling Store Cards on eBay

How do eBay sellers of store cards (like Home Depot) make any money on them?

I have seen Home Depot cards with a value of $200 sell on eBay for $180 as an example.  The only thing I can think is that the seller of this card bought it from some hard-up person and gave THAT person maybe $50 to $100 for it and then is flipping it on eBay.

OR....person "A" buys it with a credit card for $200 (defaults on the cc payment) and sells the card for cash to person "B" for $100 and THEN person "B" sells it for $180 on eBay. Something might go wrong somewhere along that line for the crooks trying it.

There are CL adds (and a website) For buying gift cards. Depending on card they give you 40%-60% face value.   
cardpool.com/sell-gift-cards.  (This one lim to give UP To 92%)


Also, a lot of companies buy bulk cards at discount.   Sure some of those make there way there to eBay.
Ex: my friends parents have heating/cooling business.  They buy 100's of $50 resturant cards at $35/ea to use as referral promo's. 

So guess someone could buy bulk and sell at slight markup. 

 But think your right.  Mostly people desperate for money.   Like the guy that gets a $250 card as a company Xmas gift or bonus but needs money to fix his car......eBay it for $200......

Your last point might be the main reason.
They jut busted a "gift card ring" here.  Guy stole purses in mall.  Hurried to by $1000's in gift cards before credit cards could be reported.   

Another one was steeling identities and buying gift cards.

Guess the card companies would rather take he loss than spend money on tracking the cards.

Every now and then I run ads on Craigslist telling people that I buy gift cards for 80% of the amount on the card. I only buy certain cards though. Home Depot, Lowes, Wal-Mart, Sears, Grocery Stores & Harbor Freight. I don't shop at any other stores and these are the easiest to resell.

Here is a tip: If you buy gift cards from people off Craigslist, make sure you meet them at the store and spend the entire card on something before you pay them. This way you know the funds are good. If you just verify the card and stick it in your wallet for later use, the seller can call the store with the receipt, cancel the gift card and get another one mailed to them, leaving you stuck out.

During the Christmas holidays on eBay, these gift cards were selling for 98-99% or even full price so people could avoid a trip to the store and have them shipped to their relatives for free.

If you're ever making a large purchase, for example a ride mower, it may be worth it to buy these cards off of eBay. If you can save 10% off a $1500 purchase, that's some serious dough.

creditcards(dot)com/credit-card-news/gift-card-discount-1276.php

Here's a screen print of the last three feedback received on eBay by a seller of store cards.

The names of the seller,the three buyers and the item numbers have been blacked out to protect the "innocent".

The seller has not had any sales since those September feedbacks but eBay did not suspend him.

You may have to scroll to the right to see the transaction dates in Sept.

The seller is a member of this forum but has not been active here for some time. Jail time ?

So, how does this scam work? Seller creates a new account, sells a few legitimate things and then waits for the payment hold to be lifted. Once the payment hold is lifted he then lists several fake items, buyers pay and then he immediately withdraws the funds?

I started a new thread for this. http://storageauctionforums.com/ebay/is-it-possible-to-scam-ebay-paypal/

So, how does this scam work? Seller creates a new account, sells a few legitimate things and then waits for the payment hold to be lifted.

It's not as easy as it sounds. You have to have a PayPal account and a credit card on file to be able to sell.

I was at Costco today and all the resturant gift cards were $79.99 for two $50 gift cards.
Then a guy at the table was promoting and if you bought four you got one free.
Divides down to $32 for each $50 gift card.

It would be a grind but you could make up to $180.  Realistically, with fees, postage....$40? $50?

Or you could just take your wife out to dinner on the cheap.

The other day when I was looking for your Best Buy card, I hit eBay to see if I could save some money. Nope. Bidders were pushing the prices up to 98-99% of the cards value. To me, it's not worth taking the risk of buying a gift card from a private seller just to save a dollar or two.

To me, it's not worth taking the risk of buying a gift card from a private seller just to save a dollar or two.

I agree, But what even more weird is when people run the price of something up higher than you can buy it outright somewhere else.

I agree, But what even more weird is when people run the price of something up higher than you can buy it outright somewhere else.

Sounds like some of the auctions I've been to lately.    Yeah, I agree. I have seen gift cards go for a couple of dollars over the face value...especially around Christmas time. I think it's a convenience thing.

I agree. I have seen gift cards go for a couple of dollars over the face value.

Not just gift cards but many other items as well. Take something as common as Advil for example. I can get the large 360 count bottle at Costco for $18, or for $15 on eBay with a Buy It Now listing. Then I've seen eBay auction listings where the same bottle went upwards to $35. People get crazy sometimes with auctions and make it all about winning instead of smart shopping.

How do eBay sellers of store cards (like Home Depot) make any money on them?

I have seen Home Depot cards with a value of $200 sell on eBay for $180 as an example.  The only thing I can think is that the seller of this card bought it from some hard-up person and gave THAT person maybe $50 to $100 for it and then is flipping it on eBay.

OR....person "A" buys it with a credit card for $200 (defaults on the cc payment) and sells the card for cash to person "B" for $100 and THEN person "B" sells it for $180 on eBay. Something might go wrong somewhere along that line for the crooks trying it.

you missed one scenario , person buys stuff at yard sale , auction, craigs list etc returns item to store and sells the store credit card

you missed one scenario , person buys stuff at yard sale , auction, craigs list etc returns item to store and sells the store credit card

Guilty.   


...........
Now that I've looked into it I'm  sad I've ever  paid full price. Dels all over.  And since they can't expire might s well grab while on sale. 

  Just found a visa deal.  Coupon so fee is only 99cents.   Safeway has a deal, buy 2 $50 prepaid vise, $15 off.   Buying them to pay my bills online and my doctors co-pays.  Hey, save a buck here, buck there.....adds up.

you missed one scenario , person buys stuff at yard sale , auction, craigs list etc returns item to store and sells the store credit card

Guilty as well. Picked a set of pots and pans from this guy after he bought a unit. Paid $30. Looked them up and they were $180 at Wal-Mart.

I'm going to guess that a large percentage of these gift cards are being sold by thieves. A thief can steal stuff from Home Depot and return it for in store credit. Home Depot allows you to make 3 returns every 6 months without a receipt just by showing ID. A lot of stores have similar policies. Heck, CVS pharmacy does unlimited returns without a receipt.