Hello, john999-ga!
You have asked an interesting question. I have provided a few
references about the gift-card resale business, and a forum link which
discusses the Walmart/eBay gift card issue. They should provide some
answers to your question!
==
From "Man pleads no contest in gift card scam." The Post-Crescent.
December 14, 2005
http://www.postcrescent.com/apps/pbcs.dll/article?AID=/20051214/APC0101/512140639/1004
"An Appleton man charged with bilking people out of more than $80,000
over the Internet pleaded no contest Tuesday to a single count of
felony theft. Groat and his wife, Kelly, 26, were charged for
concocting a scheme to sell gift cards for less than face value
through the online auction site eBay."
"According to court records, the defendants were selling $100 Wal-Mart
and Sam's Club gift cards for $80. They didn't have the cards in their
possession but were betting on incoming revenue to purchase the cards.
Steven Groat told police his wife devised the plan. He said their
intent was to "leap frog" sales, "using the revenues from future sales
to cover the lost revenue on earlier sales."
"The plan collapsed when eBay imposed a limit of $500 a day on gift
card sales. By the time they were charged, about 180 people had been
defrauded out of a total of $80,000. One victim paid $8,400 for 105
gift cards."
==
From "Walmart gift cards on eBay."
http://www.cheapassgamer.com/forums/archive/index.php/t-1426.html
Q. "What's the deal with the hundreds of gift cards to WalMart on
ebay? I looked at a couple and they say you pay for it, but don't get
them for 4 weeks. So at what point does the seller get the card?
Sounds like a quick money maker, but I can't figure out how."
Some replies:
"Since they are reusable there is no value to them until they are
credited money. If I go and just take one it has no value. If I take
it to the check-out I tell the cashier the value I want placed upon
the card, then pay that amount then they are worth something. The
question is how are they getting the $500 to put on these cards?
Stolen funds from elsewhere in addition to a little of the money they
make off the winner is my bet."
"I guess they hold your payment for 4 weeks to make sure they aren't
getting ripped off despite selling cards which were probably ripped
off someone else."
"There are clubs and such that one can join which pay back 20% of the
giftcards one purchases. My guess is that the sellers take the money
from the buyer, purchase the cards through these clubs, wait to
receive the money back, and then send the cards to the buyer. So,
selling a $500 card for $425, they'd still be up $25 (minus shipping
and any club membership fees)."
"Since walmart offers store credit on no receipt refunds Id assume the
guy is a refunder, probably steals and refunds, takes the giftcards
and sells for profit, easy way to turn store credit into profit. Ive
seen it done a lot outside department stores (sears has a customer
friendly return policy) usually walk in pick up item go to cash
register return it receive gift card and head to the door to sell to
incomign customers."
"Go in fill ur cart go to return get store credit. Sale card on Ebay."
===
Here is a warning about the Walmart/Ebay Giftcard Scam:
WATCH OUT BUYING DISCOUNT GIFT CARDS!
http://www.mightybargainhunter.com/giftcardscam.htm
"This is an important update. Please be aware of risks associated with
buying discount gift cards on eBay or anywhere else. This article
mentions eBay and Wal-Mart. This article is not about eBay or
Wal-Mart, and there should be no inference drawn that these companies
promote such scams, because they don't -- they fight them."
"The most recent article on the MBH website, "Take the Guzzle Out of
your Gas Budget," mentions that a good way to save money on gas is to
purchase Wal-Mart shopping cards at a discount to face value on eBay.
Well, it was recently brought to my attention that there is a good
chance of being scammed here. A bunch of people have been burned by
this. Not everyone, but definitely more than normal. I may even end up
being burned by this one."
"As I explain what I've found out below through newsgroups and the
like, please understand that I was not aware of this when I wrote the
article. The last thing I ever want to do is promote a scam."
Backing up a little bit..."I had seen mention of memberships to
services through which people could regularly purchase gift cards to
stores at a discount to their face value. And judging by the largely
positive feedback for gift card sellers, I had every reason to believe
that this was on the up-and-up, and that the sellers were pocketing
the difference on what they paid for the cards and what they sold them
for as their profit, just as any businessperson would do. Also, other
highly-reputable websites in the money-saving arena advertise that
discount gift cards are available on eBay. My personal experience has
been mixed with purchasing the cards. Some of the transactions have
gone picture-perfect, others less perfect. I attribute the one that
went sour to a general investigation by eBay -- rightfully so -- on
sellers of gift cards. The seller's feedback was excellent, and he had
made several gift card sales before to glowing reviews by the buyers."
"Others, however, weren't so fortunate. Some have received cards with
no value on them (outright fraud). Others also question whether the
cards were obtained illegally, by returning stolen merchandise without
receipt, obtaining store credit, and selling the card for whatever
cash they can on eBay. Others still may not get the cards at all, and
may not be able to warn other users through the feedback mechanism
because the delivery date was so far in the future that it passed the
deadline for leaving feedback."
Caveat Emptor - "So, I feel that the best thing to do for now is to
USE A LOT OF CAUTION IF YOU DECIDE TO PURCHASE THESE CARDS. My
experience on eBay has largely been very good (as it is for millions
of other people, some of whom depend on it for their livelihood!) and
I usually make a judgment whether to buy from someone or not based on
a five-minute review of their feedback rating because it is generally
a very good indicator of how they do business. In this case, though,
maybe a little more digging is necessary."
==
I visited eBay to see how many sellers are offering more than one
Walmart gift card. Very few had more than one to sell, and those that
did were offering them under "mystery auctions." Although the
advertisement might mention a specific gift card value (say, $500, the
catch is that only one of the cards may actually match that ad). In
these cases, it is likely that the sellers bought the cards themselves
and are hoping to turn their expenditures into a profit through higher
bids than the face value on the lower cards. Who knows how many people
will fall for this!
Some examples:
Walmart Mystery Gift Card/Gas Card
http://search.ebay.com/_W0QQsassZrollin-dubsQQhtZ-1
"WOULDN'T BE GREAT TO PURCHASE A WALMART GIFT CARD AS A GIFT FROM ME
TO YOU THAT IT COULD HAVE UP TO $500.00 ON IT. YOU ARE BIDDING ON ONE
WALMART GIFT CARD WITH A GUARANTEED MYSTERY VALUE OF $5....to...$500.
IT WOULD BE GREAT TO GET THE $500 ONE OR THE $250, WELL IT IS UP TO
YOUR LUCK, LET'S GIVE IT A TRY!!!! REMEMBER YOUR GIFT CARD COULD HAVE
ANY AMOUNT BETWEEN $5.00 AND $500.00 AS A GIFT FROM ME TO YOU. WHEN
THIS AUCTION ENDS AND I RECEIVE PAYMENT, YOU WILL PICK A CARD NUMBER
AND I WILL DRAW THAT CARD OUT OF THE STACK AND MAIL IT TO THE WINNER.
All I do know about your card is that every one has a even dollar
amount. (Example: $5, $25, $ 36, $68, $247, $300, $333........$500)"
http://cgi.ebay.com/500-Wal-Mart-Walmart-Gift-Card-Gas-Card_W0QQitemZ5651466455QQcategoryZ31411QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
==
In this next ad, the seller offers three, $100 Walmart gift cards.
However, when you look at his actual offer, you find that they are
mystery cards advertised as a $100 gift card.
http://search.ebay.com/_W0QQsassZkrouse13
"What your bidding on is Gift Certificates that have a value of XX.XX.
The thing is to which store....??? and how much???. I have given a
couple clues already. This Is A Mystery Auction. You Will Receive
XX.XX Worth Of Gift Card/Certificate and You Wont Know The Merchant
Until You Check Your Mail Box. This Is A Once In A Life Time
Opportunity. Satisfaction Guaranteed. Don't Miss This Great
Opportunity To Spoil Yourself In What Ever You Want But Didn't Receive
For Christmas."
http://cgi.ebay.com/100-00-Walmart-Gift-Card_W0QQitemZ5652444755QQcategoryZ31411QQrdZ1QQcmdZViewItem
==
There are some legitimate giftcard resale/swap sites online:
Read "Unwanted Presents Find Homes In the Online Gift-Card
Marketplace," by Ylan Q. Mui. Washington Post Staff Writer. Saturday,
December 3, 2005
http://www.washingtonpost.com/wp-dyn/content/article/2005/12/02/AR2005120201868_pf.html
* Note that eBay has tried to nip the fraudulent sale of scam giftcards in the bud:
"Hani Durzy, an eBay spokesman, said the company has agreed to cap the
value of gift cards that can be auctioned at $500. It also limits
transactions to one per week for each seller, attempting to prevent
the sale of stolen cards without limiting legitimate users who got
stuck with an unwanted present."
=
Read "Exchange That Funky Gift Card."
http://www.wired.com/news/ebiz/0,1272,66151,00.html
=
Read "Sites Let People Trade Unwanted Gift Cards," By GIGI STONE
http://abcnews.go.com/WNT/Business/story?id=1393732
=
Also read "Consumer Gift Cards - How To Buy - Sell - Trade Your
Consumer Gift Cards," from Courtney Gable.
http://losangeles.about.com/od/cityinfo/qt/giftcard.htm
=
Also see "Internet sites allow gift card exchanges."
http://www.usatoday.com/money/industries/retail/2004-12-31-gift-card-exchange-sites_x.htm?POE=MONISVA
==
I hope these references help to answer your question!
Sincerely,
umiat
Search Strategy
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