Why do gift cards on ebay sell for more than face value

Sometimes, gift cards on eBay are sold at prices more than their face values. You may be wondering why it happens. I am, too. I went online to research and saw lots of discussion in many forums. From them, I learned cash back or promotion can explain some of them. And today, I experienced that myself. I bid at eBay auction and won. The price is more than face value of the gift card, 104.44%. Here is a detail.

500 target gc for $522.22

The item was $500 Target gift card. It was auction style listing and ending in a few hours when I saw it. Before logging in eBay, I received an email from eBay that notified me about eBay Bucks promotion. It was:

Earn 10% eBay Bucks on every qualifying single item of $250 or more on June 4th to June 5th

I received an email 3 hours before the promotion started. I have seen the same type of eBay Bucks promotions throughout the year (sometimes 4%, qualifying on $50 or more purchases, etc.), but they appear at random. So, you need to keep an eye on your emails.

earned $52.22 ebay bucks$250 is not cheap (at least, for me). You shouldn’t buy something expensive just to meet requirements for 10% eBay Bucks. But if you choose gift cards for stores that you regularly shop, it will be fine. So I chose Target gift card and bid at the auction. I won the auction for $522.22, which was my max bid. I will get $52.22 in eBay Bucks. Considering this, I got $500 Target gift card for $470. It is exactly 6% off. According to data at GiftCardGranny.com, 6% discount is more than the average for Target gift cards and 5% REDcard discount as well. It won’t take a month for me to spend $500 at Target, but I can even boost up spending by using this strategy (of course, without frittering away).

6% discount is not only the bargain I got from the transaction. That is because I earned 0.5% cash back ($2.61) from BigCrumbs.com. And I paid with American Express gift card linked to my PayPal account. When I purchased AmEx GC, I earned 4% equivalent reward ($20.88) from Fuel Rewards Network.

This is why I spent more money for a gift card which has less value. However, the money I paid is only 104.44% of actual value of the gift card. I still cannot understand why some gift cards or reload packs are sold at 150% to 200% price. In the forums, people are saying that it’s fraudulent, money laundering, or stupidity. But I feel that there must be a secret, and I hope I will figure it out someday.

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>