Gift cards are meant to be simple—a convenient way to give someone the ability to buy what they want. But in reality, they create a locked-in financial system where money becomes restricted to specific brands and businesses. For many, this is a minor inconvenience. For others, it’s an opportunity. The practice of selling gift cards has evolved from a small workaround into a larger financial mechanism, moving money in ways retailers never intended.
The Problem with Gift Cards
At their core, gift cards benefit retailers more than consumers. When someone buys a $100 gift card, the store receives that money upfront, whether the card is used or not. If the recipient never spends the balance, the store profits entirely—this is known as breakage, and it accounts for billions of dollars annually in unredeemed gift card value. Even when a gift card is used, it often leads to overspending, with consumers adding more to their cart than the card covers, further increasing store revenue.
For the recipient, however, a gift card is only useful if they want or need something from that particular retailer. A card for a store they rarely visit is effectively useless unless they find a way to convert it into real money. This is where selling gift cards comes in.
The Gift Card Resale Market
Over the years, a secondary market has emerged where people can sell their unwanted gift cards, usually at a slight discount. Buyers looking for deals snap them up, creating a win-win situation: the seller gets cash, and the buyer gets store credit for less than face value.
Online platforms like Raise, CardCash, and Gift Card Granny have built businesses around facilitating these transactions. They act as intermediaries, verifying balances and providing a secure space for buyers and sellers to connect. These platforms make it easier to sell gift cards, but they also take a commission, meaning sellers receive less than their card’s full value.
Beyond these marketplaces, there are direct peer-to-peer sales through platforms like Reddit’s r/giftcardexchange or Facebook groups, where buyers and sellers negotiate their own deals. These transactions often yield better prices for sellers but come with higher risks, including scams and payment fraud.
The Risks and Realities of Selling Gift Cards
The appeal of selling a gift card is straightforward—turn locked-in store credit into flexible cash. But the process isn’t always seamless. Fraud is a significant issue in the industry, and both buyers and sellers must navigate potential pitfalls.
One common problem is chargeback fraud, where a buyer pays for a gift card, receives the code, and then disputes the transaction, claiming they never received it. Because gift card sales are difficult to verify, sellers often lose both the card and the payment. Another issue is balance theft—some scammers list gift cards for sale that have already been drained of funds, leaving the buyer with nothing.
To avoid these risks, reputable resale platforms offer protection, but that security comes at the cost of lower payouts. Sellers who opt for direct transactions must be cautious, verifying payments before releasing card details and avoiding buyers who insist on high-risk payment methods.
Selling Gift Cards as a Financial Strategy
While most people sell gift cards simply to recover lost value, others have found ways to turn it into a financial strategy. Some buyers look for discounted gift cards to use on planned purchases, stacking them with store sales and credit card rewards for bigger savings. Others engage in gift card arbitrage—buying cards at a discount and reselling them for a smaller discount, profiting on the difference.
Retailers often run promotions where purchasing a gift card comes with a bonus. For example, a store might offer a $10 bonus card for every $50 spent on gift cards. Savvy resellers buy these promotions in bulk, then sell the cards at close to face value, turning a profit from the bonus cards.
Another strategy involves credit card rewards. Some cards offer higher cashback rates for purchases at grocery stores, which often sell third-party gift cards. By buying these cards at full price and reselling them, individuals can cash out their credit card rewards while only taking a small loss on the resale price.
How Retailers Respond to the Resale Market
Retailers have a complicated relationship with the gift card resale market. On one hand, resold gift cards still funnel money back into their businesses, so companies tolerate the practice. On the other hand, some businesses see bulk resellers as a threat, as they manipulate promotions and potentially reduce direct sales.
To counteract this, some retailers have implemented restrictions. These include limiting the number of gift cards that can be purchased at one time, requiring ID verification for large transactions, or preventing customers from using gift cards to buy additional gift cards. Some retailers actively monitor accounts for excessive gift card activity and suspend users who appear to be resellers.
The Global Role of Gift Cards in Alternative Finance
Beyond the casual gift card reseller, there are entire economies where gift cards serve as alternative financial instruments. In some countries with unstable currencies or banking restrictions, gift cards from international brands are used as a store of value. Digital gift cards can be easily transferred and sold, allowing individuals to bypass banking systems or inflation-prone currencies.
Cryptocurrency traders have also leveraged gift cards as a bridge between digital and traditional finance. Some use crypto to purchase gift cards and then resell them for cash, converting digital assets into spendable money without going through a traditional bank. Others buy gift cards with cash and trade them for cryptocurrency, using them as a workaround for regions where crypto transactions are restricted.
The Future of Selling Gift Cards
The resale market for gift cards isn’t going anywhere, but it is evolving. As retailers attempt to tighten control over gift card usage, resellers will have to adapt. Some companies are moving toward digital gift cards that are directly linked to customer accounts, making them harder to resell. Others are exploring blockchain-based solutions that provide more traceability and reduce fraud.
Despite these changes, the fundamental issue remains: people will always receive gift cards they don’t want, and they will always look for ways to convert them into cash. As long as there’s a gap between what people have and what they actually need, the secondary market for selling gift cards will continue to thrive.
What started as a simple way to offload unwanted store credit has grown into a complex financial ecosystem. For some, selling a gift card is just about getting a bit of cash back. For others, it’s an opportunity—a way to navigate financial systems, find discounts, and, in some cases, turn a profit. One thing is clear: as long as gift cards exist, people will find creative ways to use, trade, and sell them.