Buzz
After the holiday season, many store gift cards end up sitting unused in wallets for months. In fact, between 10-19% of gift card balances often remain unredeemed, and around 6% of gift cards are never even used, according to The Hustle. Thankfully, these cards can be sold for real cash on reseller websites. But are gift card exchange platforms trustworthy?
How gift card exchange platforms operate
Gift card exchange websites facilitate buying and selling by acting as intermediaries between buyers and sellers. To sell a gift card, you list it on the platform, including the card number and PIN, which the site verifies. While exchanges are mostly digital, there may be instances where physical cards are mailed, with the reseller serving as the intermediary.
You’ll never sell a gift card for its full value, as brokers take a small commission and buyers typically expect a discount (since they'd otherwise purchase the cards directly from retailers). However, the trade-off is that you receive cash that can be used anywhere, not just at one specific store. Plus, the loss in value is preferable to letting the card go unused. If the card remains unredeemed for 180 days, chances are it will never be used, according to a Paytronix report.
How much you can earn depends on the popularity of your gift card and the quantity available on the market. For instance, a $100 Amazon or Visa card will be in higher demand than a $100 Arby’s card. Typically, you can expect to earn between 50-92% of a card’s value based on market demand.
A word of caution
Even the larger exchange sites should be used cautiously, as they often face complaints to the Better Business Bureau (BBB) regarding card rejections at retailers, and delays in receiving cards and payments.
In December, the BBB issued a warning about the popular reseller Cardpool, which currently holds an “F” rating due to the volume of complaints. This doesn’t imply that all exchange sites operate similarly or lack customer support—it’s simply a factor to consider (personally, I’d feel comfortable buying a gift card from these sites, but I’d aim to use it immediately).
The BBB provides these guidelines when considering a gift card reseller:
Do your research before buying, selling, or trading any gift cards.
Go to
BBB.org
to check the company’s rating.
Look through the complaints and reviews from customers of any online gift card reseller you’re thinking of using.
Ensure the business provides clear and accessible contact details.
Make sure you understand the business’s refund policy before proceeding.
Opt for a payment method that allows you to dispute the charges if needed.
After purchasing any gift cards, promptly check their balance and verify any associated passwords or PINs.
Use your gift cards without delay. This is especially crucial during COVID-19, as many businesses are closing. When a store shuts down, its gift cards lose their value as well.
Learn more about how to handle your gift cards if a business goes under.
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