Can I Trade Gift Cards? Where and How to Do It
Convert unwanted gift cards into cash or useful alternatives. This guide details the comprehensive process and available venues for successful exchanges.
Trading gift cards provides a practical solution for individuals holding unwanted cards, allowing them to convert these assets into cash or other gift cards they can use. This process offers financial flexibility, ensuring that the value of the gift card does not go to waste.
Where to Trade Gift Cards
Several avenues exist for trading gift cards. Online gift card marketplaces are a prominent option, serving as platforms where users can list their unwanted cards for sale. These platforms, such as CardCash or Raise, facilitate transactions by connecting sellers with buyers looking for discounted gift cards. They often offer a percentage of the card’s face value, typically ranging from 70% to 92%, depending on the brand’s demand and the platform’s commission structure.
Payment methods on these online marketplaces commonly include direct bank transfers (ACH), PayPal, or even cryptocurrency, with payout times varying from instant to several business days. Some retailers also operate buyback programs, though these are less common, where they might offer to purchase their own unused gift cards. Additionally, physical locations such as check-cashing services might offer in-store gift card buyback programs, providing immediate cash for the cards.
Peer-to-peer trading through online forums or social media groups also represents a viable option. This method can potentially yield higher returns, as it bypasses intermediary fees associated with dedicated platforms. However, direct peer-to-peer exchanges require careful negotiation and increased vigilance regarding transaction security.
Preparing Your Gift Card for a Trade
Before initiating any trade, preparing your gift card helps ensure a smooth and successful transaction. A crucial first step involves accurately checking the gift card’s balance. This can typically be done by visiting the issuing brand’s website, calling the customer service number usually found on the back of the card, or inquiring in person at the store. Verifying the precise balance ensures transparency and helps in setting a realistic selling price.
Next, it is important to review the gift card’s terms and conditions. These terms include checking for any expiration dates, usage restrictions, or non-transferability clauses. Federal law, the CARD Act, generally mandates that gift cards cannot expire in less than five years from the date of issuance or the last time funds were added. This law also limits inactivity or dormancy fees, generally allowing them only after 12 months of non-use and restricting them to one per month.
Finally, gather all necessary card details, such as the card number, PIN, and any security codes. For physical cards, the PIN is often located under a scratch-off panel. These details are essential for verifying the card’s authenticity and transferring its value during the trade. Ensuring the card is active and has not been partially or fully used is also a prerequisite for most trading platforms.
Executing a Gift Card Trade
Once your gift card is prepared, executing the trade involves listing or offering your gift card on your chosen platform or to a potential buyer. This typically involves inputting the verified card details and the desired selling price, which is often a percentage below the face value to attract buyers. The discount rate offered will reflect market demand and the platform’s fee structure.
Upon receiving an offer, you will evaluate it based on the proposed discount rate and the available payment methods. Common payment options include direct deposit to a bank account, transfers via digital payment services like PayPal, or even cryptocurrency payouts. Payout times can range from nearly instant, especially for cryptocurrency or certain digital wallet transfers, to several business days for bank transfers.
After accepting an offer, the next step is securely transferring the gift card information to the buyer or platform. This should ideally be done through the trading platform’s secure system to protect sensitive details and prevent fraud. Once the transfer is complete, confirming the receipt of payment is the final stage, ensuring the funds have been successfully deposited into your chosen account. Generally, selling a personal gift card for less than its face value is not considered a taxable event, as it typically represents a disposition of personal property at a non-deductible loss.