You are not alone if you have ever received a gift card and thought, “Great! Now I’m stuck into purchasing at this one location forever”. Gift cards initially appear to be the slackiest way to give gifts, they are a step up from giving someone an envelope of cash, but they offer a fraction of the flexibility.
But here’s the thing: gift cards have built an entire underground economy that most people never think about. They aren’t just a casual way to send birthday money; they’re used for discounts, reselling, financial bypassing, and yes, even some sketchy activity that retailers don’t want you to know about.
The Problem With “Free Money”
Retailers love selling gift cards. Why? Because a lot of people never actually use them.
Calculating billions of dollars in gift cards to balance proper sitting, it’s confirmed to be unclaimed, expiring into the opening, but still, companies are holding their profit. Whenever you face to lose to a $25 Starbucks card in your trash drawer, that’s free funds for the company. Some businesses also count on this happening, it’s called ‘breakage’. Breakage is built into their earnings standards.
But let’s assume you’re not one of the forgetful ones. You use your gift cards. You also be wise enough to purchase them at a discount. It’s an interesting moment for all.
The Gift Card Discount Game
Buying a gift card for face value is for amateurs. The real game is in **getting them at a discount**.
You may buy gift cards at 5-20% cheaper if you know where to look. You can cut the cost of a $100 gift card to $90 by using platforms where people sell their unwanted cards for a discounted price. Stack that with sales, cashback offers, and other deals, and suddenly you’re saving way more than most people ever think about.
Some buyers take this even further, purchasing discounted gift cards in bulk for big purchases. Buying furniture? Electronics? Groceries? Get the gift cards first at a discount, and suddenly you’re knocking off extra percentages.
Retailers know this is happening, and they hate it. Some have cracked down by limiting the number of gift cards you can use per purchase. Others refuse to let you buy new gift cards using old ones (a common loophole for maximizing discounts). But there are always workarounds.
Reselling: The Side Hustle You Never Considered
If people are willing to sell gift cards at a discount, then naturally, someone else is out there flipping them for a profit.
Gift card resellers buy up discounted cards and sell them for a slightly lower price than retail. They make their margins in volume, exploiting small price gaps between different platforms and marketplaces. Some even use gift cards as a way to buy products at a discount and resell those items at full price elsewhere.
This hustle is legal… mostly. Even though it is against many shops’ terms of service, the secondary market continues to flourish. “Gift card arbitrage” has online forums where buyers and sellers exchange information on which cards are the most valuable and which are the easiest to flip.
The Crypto Connection
Gift cards have also become a bridge between traditional money and cryptocurrency.
Because not every country or service allows direct crypto transactions, some people buy gift cards with Bitcoin or Ethereum as a workaround. It’s a simple way to turn digital assets into something spendable—without needing a traditional bank.
On the flip side, some people buy gift cards with cash and sell them for crypto. It’s one of the less conventional ways people move money around, and it’s **not always above board**.
The Risky Business of Buying Gift Cards
Naturally, fraud will occur in any industry that handles money. Scammers abound in the gift card industry, and you risk getting burnt if you don’t know what you’re doing.
Common scams include:
Fake balance cards – Some sellers claim to have loaded cards but give out ones that have already been emptied.
Stolen gift cards – Fraudsters buy gift cards with stolen credit cards and resell them quickly before the transactions get flagged.
Hacked card numbers – Some scammers use bots to guess gift card codes and drain the balances before legitimate buyers even use them.
If you’re going to buy second-hand gift cards, **use platforms that offer buyer protection**. Never purchase from someone who demands cryptocurrency-only payments, and you already know the answer if a bargain looks too good to be true (*$250* for a $500 Apple gift card).
How Can Gift Cards Be Used Wisely?
Gift cards are a useful tool if you know how to utilise them properly, regardless of your goals: saving money, earning a little extra cash, or navigating the strange financial pitfalls of contemporary commerce.
Some smart strategies:
- Always check for discounts before buying a gift card.
- Use them for planned purchases to stack savings.
- Be cautious when buying second-hand use reputable platforms.
- Don’t let gift cards collect dust they lose value through fees or expiration dates.
Gift cards are more than just gifts for people. They are a shockingly valuable, unregulated, and undervalued component of the contemporary economy. Simply said, avoid becoming the person who leaves them in a drawer.
