How to Make Money Selling Gift Cards

Selling gift cards converts unused or unwanted balances into cash or other forms of value. This practice can range from liquidating a card received as a gift to engaging in a structured arbitrage strategy. Understanding the gift card market offers a financial opportunity to recover funds or generate profit.

Determining Gift Card Value and Eligibility

Before selling a gift card, accurately assess its value and confirm eligibility for resale. Check the remaining balance via the retailer’s website (using card number and PIN), customer service phone number, or at a physical store. Accurate balance verification ensures transparency with potential buyers and prevents issues during the sale.

Gift cards rarely sell for their full face value in the secondary market. Resale rates are influenced by brand popularity, market demand, and card type. Cards from major retailers like Amazon or Walmart often command higher percentages due to their broad utility. Niche brands or those with limited locations may yield lower returns. Market demand can also fluctuate seasonally, with values increasing during holidays or peak shopping periods.

Both physical and e-gift cards can be sold, but they differ in perceived value and ease of transfer. Digital gift cards are easier to sell due to immediate deliverability, reduced risk of loss or damage, speed, and security, often leading to faster processing and instant payouts. Physical cards may require shipping, incurring additional costs and delays.

Common restrictions can affect a card’s eligibility for sale. Many platforms prefer cards with a minimum balance and may not accept partially used cards or those with complex activation statuses. Cards with expiration dates or reloadable features might also face limitations. The most desirable cards are non-reloadable and have clear, easily verifiable balances.

Choosing a Selling Platform

Selecting the appropriate platform is key to successfully selling gift cards, as different avenues offer varying benefits and drawbacks. Dedicated online gift card marketplaces like CardCash and Raise specialize in facilitating transactions. These sites offer a streamlined process, often providing immediate offers or allowing sellers to set prices.

Payout rates vary, often ranging from 75% to 92% of face value, depending on brand and demand. Fees, such as a commission percentage deducted from the sale (e.g., Raise charges 15%), are standard. Payment methods commonly include PayPal, direct deposit, or check, with processing times from a few hours to several business days.

Peer-to-peer marketplaces, such as eBay or Facebook Marketplace, offer an alternative for selling gift cards directly to individual buyers. Sellers may achieve a higher payout percentage by avoiding the immediate buy-back rates of dedicated marketplaces. However, this approach requires more effort, as sellers are responsible for creating listings, managing buyer communication, and handling the transfer process.

There is also a higher risk of scams, and these platforms may offer less direct support for gift card issues compared to specialized marketplaces. eBay, for example, has specific policies regarding gift card sales, including limitations on total listing face value and restrictions on electronically delivered gift cards from certain sellers.

In-person options, such as pawn shops or gift card exchange kiosks, offer immediate liquidity. While convenient and providing instant cash, they typically offer significantly lower payout rates compared to online platforms. These physical locations often purchase cards at a steep discount to ensure their profit margins. When choosing a platform, consider the desired payout percentage, sale speed, available payment methods, associated fees, and the level of seller protection or support provided.

Steps to List and Complete a Sale

Once a selling platform is chosen, listing and completing a sale generally follows structured steps. Initial setup involves creating an account, which often requires identity verification for security and compliance. This process typically involves providing personal information to confirm the seller’s identity.

After account setup, create a detailed listing for the gift card. This requires providing specific information: brand, exact remaining balance, gift card number, and PIN. For physical cards, clear images may also be required. Ensure all details are accurate to prevent issues during verification and transfer.

Platforms often use automated systems or manual review processes to verify the card’s balance and validity before or after a sale, protecting both the buyer and seller from fraudulent transactions.

Upon sale confirmation, transfer the gift card information to the buyer or the platform. For e-gift cards, this typically involves securely providing the card number and PIN electronically. For physical cards, secure mailing or other agreed-upon transfer methods are used. The platform usually facilitates this exchange, often acting as an intermediary to ensure successful transfer before payment release.

Payment for the sale is processed through methods offered by the platform. Payout options include direct deposit, PayPal transfers, or a physical check mailed to the seller. The timeline for receiving funds varies, ranging from instant payouts for digital cards to several business days or longer for checks or physical card sales. After receiving payment, confirm funds have cleared and maintain transaction records for financial tracking. Profit from selling gift cards, particularly through arbitrage, is considered taxable income and should be reported.

Strategies for Acquiring Discounted Gift Cards

Beyond selling unwanted gift cards, an advanced strategy involves acquiring them at a discount with the intent of reselling for profit, a practice often called arbitrage.

One method for acquiring discounted gift cards is to purchase them during retailer sales or promotional events. Many stores offer incentives like “buy one, get one percentage off” or bonus cards with qualifying purchases, especially around holiday seasons or major sales. These promotions effectively reduce the gift card cost, creating a margin for resale.

Credit card rewards and cashback programs offer another avenue for reducing gift card acquisition costs. Many credit cards provide bonus points or enhanced cashback rates on purchases within specific categories, such as groceries or gas. Since gift cards are often sold at these retailers, using a credit card with a 5% cashback bonus on grocery purchases, for example, can result in a 5% discount on the gift card’s face value. This effectively lowers the card’s cost basis, increasing the potential profit margin upon resale.

Loyalty programs can also be leveraged to acquire gift cards at a favorable rate. Some programs allow members to redeem accumulated points for gift cards, sometimes at a value exceeding the typical redemption rate for other rewards. By strategically redeeming points for high-demand gift cards in the secondary market, individuals can secure cards at a lower effective cost.

While bulk purchasing is typically reserved for experienced sellers, it can also obtain gift cards at a slight discount due to transaction volume. This usually involves direct negotiations with retailers or distributors for larger quantities. Regardless of the acquisition method, factor in all potential selling fees, platform commissions, and time involved in the resale process to ensure a profitable margin remains.