Why do used gift cards on Ebay sell for so much?

[pocomom]

I'm curious if there is a reason why used gift cards regularly sell for over their value on Ebay? I routinely buy used gift cards from gift card resellers for my regular purchases, I mean why not save an extra 10-20% when I know I'm going to buy something? ...but I didn't see some of the stores I was looking for this time and it takes a couple weeks to ship and recieve normally so I went to Ebay - I just don't understand why someone would take a risk on a used giftcard without the benefit of substancial savings -MANY, and not just Amazon cards, were selling for OVER their stated value. Like a Kroger $100 card that sold for $112 ???You can go the kroger site online and pay $1.50 over any amount for shipping, and it would be new. Especially when you can find gift cards in just about every grocery store. Is there something I'm missing or is it just the desire to "WIN".

 

[jmartinez1895]

I don't understand this either. I would NEVER pay more for a card than the cash value. If I can get a good deal great, but I'm not going to get into a bidding war and pay more than it is worth just for the sake of winning. Also, I'm not sure I would trust buying one Ebay, I am sure most people are honest and there is no problem at all, but there are crooks and it is not a chance I am willing to take.

 

[ellone]

Scammers - either using stolen credit cards or hoping to get sellers to e-mail the codes and then claiming non-receipt.

 

[Jeff_G]

I saw a documentary about the emotions of money and investing. A professor ran a study with multiple classes, he would auction off a $20 bill. The highest bidder would get the $20 bill however the second highest would have to pay the professor their bid. Slowly the auction crawled up to the $20, the quickly spiraled up higher and higher between two bidders. Neither wanted to loose both wanted to win. I believe when finished the bid was close to $80.

 

[lebeauc]

Could it be that the people bidding on them don't have a credit card (or can't get one due to bad credit) and they use PayPal to pay for the GC on ebay (linked to their bank account). Then they can use the GC at the retailer's online site?

I'm just trying to give them the benefit of doubt, that they aren't scamming someone else.

 

[lost*in*cyberspace]

This has been going on for years. I have never been able to figure it out myself; just assumed some kind of scam was going on.

 

[meliss8599]

Ebates will occasionally partner with eBay to give a percentage of the purchase back. Those were the only times when it made some sense, but you're totally right, I've ALWAYS wondered why people pay pennies under or full value for those gift cards.

A PPs idea of them having Paypal accounts but not credit cards, yet still like wanting to do online shopping makes the most sense.

 

[Kies99]

I don't get it either, but a couple times I've sold some gift cards on Ebay and I've gotten close to face value each time.

 

[pocomom]

I don't get it either, but a couple times I've sold some gift cards on Ebay and I've gotten close to face value each time.

Guess that's the good side of it!

 

[Jenny-momof3]

I've always wondered this as well. But I've sold a ton of gift cards over the years on ebay.....all of them have either gone for more than the value or within a $1-$2 of the value. And I've never had a single person come back and scam me by saying it didn't work,etc.

I will admit, it always worries me a bit with my bigger gift cards though....$300-$500 cards. My DH gets bonuses through work in the form of gift cards for certain merchants. I sell them then use the $$ towards Disney trips.

 

[Juliet25]

Could it be that the people bidding on them don't have a credit card (or can't get one due to bad credit) and they use PayPal to pay for the GC on ebay (linked to their bank account). Then they can use the GC at the retailer's online site?

I'm just trying to give them the benefit of doubt, that they aren't scamming someone else.

Perhaps, but so many drug stores and grocery stores--as well as SAMs, Costco, Target. Etc--sell them at face value.

 

[TheMonkeyLady]

I'm curious if there is a reason why used gift cards regularly sell for over their value on Ebay? I routinely buy used gift cards from gift card resellers for my regular purchases, I mean why not save an extra 10-20% when I know I'm going to buy something? ...but I didn't see some of the stores I was looking for this time and it takes a couple weeks to ship and recieve normally so I went to Ebay - I just don't understand why someone would take a risk on a used giftcard without the benefit of substancial savings -MANY, and not just Amazon cards, were selling for OVER their stated value. Like a Kroger $100 card that sold for $112 ???You can go the kroger site online and pay $1.50 over any amount for shipping, and it would be new. Especially when you can find gift cards in just about every grocery store. Is there something I'm missing or is it just the desire to "WIN".

I think you're right...it's that desire to "win" Crazy huh??

 

[talulabelle]

It's because there are just that many crazy and stupid people out there. It is the same thing with Disney tickets. They consistently go for $2 less to many dollars above face value. I just don't get it. Why would anyone risk buying a ticket that they won't be able to use at the gate when they could just go to the gate a purchase for the same price or less. SOme people are so nuts about saving a buck, that they will do anything. These same people with the gift cards will probably then go full retail jeans wit hthe gift card and feel they saved money. THey would be better off shopping the JEANS on ebay (used ones go for as low as .99)

 

[DizneyDogs]

Ebates will occasionally partner with eBay to give a percentage of the purchase back. Those were the only times when it made some sense, but you're totally right, I've ALWAYS wondered why people pay pennies under or full value for those gift cards.

A PPs idea of them having Paypal accounts but not credit cards, yet still like wanting to do online shopping makes the most sense.

I also saw this when Bing was new and offering up to 30% cash back on ebay purchases

 

[sandynd]

Why would anyone risk buying a ticket that they won't be able to use at the gate when they could just go to the gate a purchase for the same price or less. SOme people are so nuts about saving a buck, that they will do anything. These same people with the gift cards will probably then go full retail jeans wit hthe gift card and feel they saved money.

I almost got caught in this trap myself this weekend. I am looking for chocolate gold coins in bulk for my business. $12 a pound at my local retailer (ouch!) Me being a cheapbutt, figured I could get them for cheaper online and buy enough to outweigh the shipping fee. After searching around FOREVER and finding hardly anything for decent pricing including shipping, I came across a site selling a pound for $13.95 plus less shipping than other sites. I almost pulled the trigger before I realized that that was $2 a pound over what I could get them for locally. Just got caught up in the hunt, I guess!

 

[pocomom]

I almost got caught in this trap myself this weekend. I am looking for chocolate gold coins in bulk for my business. $12 a pound at my local retailer (ouch!) Me being a cheapbutt, figured I could get them for cheaper online and buy enough to outweigh the shipping fee. After searching around FOREVER and finding hardly anything for decent pricing including shipping, I came across a site selling a pound for $13.95 plus less shipping than other sites. I almost pulled the trigger before I realized that that was $2 a pound over what I could get them for locally. Just got caught up in the hunt, I guess!

Hey we got some at oriental trading - not quality of course but cheap- just checked and they are $10.50 a lb. + free shipping

 

[sandynd]

Hey we got some at oriental trading - not quality of course but cheap- just checked and they are $10.50 a lb. + free shipping

cool - thank you - I will check it out!!

 

[talulabelle]

This also happens with coupons, people will pay 9.75 PLUS shipping for 10 $1.00 coupons. It's nuts!

 

[writersblock42]

I didn't believe it at first, so I had to skip on over to ebay and it is true! What in the world?
That makes no sense. I usually buy gift cards when they offer 10-20% off the gift card or I get free gift cards for things.

 

[writersblock42]

Ok this is the best answer I came up with so far-they are using ebay bucks to purchase the cards. The ebay bucks expire and they can only use them on ebay so instead of purchasing more stuff-they get gift cards. Still seems dumb to pay more than the face value. Seems to me that the only people making money off it would be ebay itself because even the seller would not make much after paying ebay fees. However, cash is still better than a card collecting dust.
The other reasons seem to all add up to the fact that a sucker is born every minute.
Various answers seem to be
1. People actually collect gift cards (the different pictures on them)-Whatever
2. People think that if they buy them from a 3rd party that the gift card is not traceable (not true-in fact gift cards are fairly easy to trace)
3. People use it as a strange form of money laundering (not sure how that works but again they are traceable)
4.