credit cards

Gift card trading: The secondary market

Plasticjungle.com will buy gift cards worth between $25 and $8,000 that are issued by one of its QuikCash merchants, which include Best Buy, Costco, Lowe's, Nordstrom, Pottery Barn and dozens of others. Customers receive a percentage of the remaining balance on their gift cards from 55 percent to 65 percent. (All of the merchants and the percentages paid for the gift cards are listed on plasticjungle.com.)

It's free to list a card for sale. Plasticjungle.com charges a 10 percent commission plus shipping when a card is sold. Buyers pay no fees and can use debit or credit.

Swapagift.com also offers customers cash for their cards, with similar terms: a percentage of the remaining value of cards from specific merchants. Its cash offer has a bit of a twist, though: Customers mail (first class, insured or using a tracking number) their unwanted gift cards (worth between $25 and $200 and without pending expiration) to the company, and swapagift.com verifies the card and sends the customer a check within 48 hours.

"If you look at any exchange, like the stock market, you can see that there isn't always a buyer on the other end," says Michael Kelly, co-founder of swapagift.com. "We were looking for markets in need of liquidity and gift cards were our first selection. In order to make it function like a stock market, we would make that market. We would be the market specialists. Our approach supplies some liquidity to the marketplace."

In addition, swapagift.com has a card-matching feature that allows a customer to see who's offering certain cards and who's looking for cards. For example, if you have an Ann Taylor gift card, you plug that into a search and the search yields cardholders who are willing to trade their types of card for an Ann Taylor. "We try to make sure we offer a way for the consumers to make the most from their gift cards," says Kelly.

Cards that are purchased by swapagift.com are identified as such on the Web site with a logo. Every card is verified and guaranteed, and swapagift.com provides free shipping and insurance.

Users are instructed to verify the balances on their gift cards before listing them for sale or trade. "All these cards have the online capability to have balances verified," says Kelly. "We charge a listing fee to assure that the seller is representing the goods honestly."

Swapagift.com charges a flat fee of $1.99 to list a gift card, regardless of the value of the card. The listing is valid for 90 days, and customers who have not sold or traded their cards by that time are given a chance to re-list it for 60 days at no extra charge. There is no transaction fee for the buyer of a card.

One company runs two sites that allow buying and selling. At giftcardsagain.com you can buy gift cards at a discount. They arrive in seven days, come with a 30-day return policy, and shipping is free. At its sister site, giftcardbuyback.com, you can sell unwanted gift cards and get your money within 10 days. As with the other sites that buy cards for cash, a customer receives only a percentage of the verified value of the card.

Besides the winter holiday season, the secondary market in gift cards is booming in the spring, too. "I think that's because of Mother's Day, Father's Day, weddings, graduations," says Kelly.

Cardavenue.com's Butler concurs. "We get a lot of Fortunoff's and Tiffany's cards. They're returned wedding gifts. It's regifting. You can get a card for something you really want."

advertisement

Show Bankrate's community sharing policy
          Connect with us
Product Rate Change Last week
Balance Transfer Cards 15.80% --0.00 15.80%
Cash Back Cards 16.42% --0.00 16.42%
Low Interest Cards 11.09% --0.00 11.09%
 
Search
advertisement
CREDIT CARDS WEEKLY NEWSLETTER
Credit cards on a table

Get advice for managing credit cards, building your credit history and improving your credit score. Delivered weekly.

advertisement

Credit Card Blog

Jeanine Skowronski

US credit cards to work in Cuba

The U.S. is moving to normalize relations with the nation for the first time since 1961.  ... Read more

Partner Center
advertisement

Connect with us