Selling Gift Cards: Can You Make a Profit from Unused Greetings?
For many people, gift cards are an unwanted holiday present. Perhaps the recipient didn’t like their gift, or they simply forgot about it in their wallet. But what can you do with unused gift cards? While some might toss them in the drawer as “forgotten gifts,” others see an opportunity to turn a loss into a gain. As more and more people receive unsold gift cards each year, businesses have taken notice of this trend. Many are now offering ways for consumers to sell their unwanted gift cards for cash or other rewards. But can you really make money selling your unused gift cards? Let’s explore the key points about this practice.
Key Points:
1. What Can You Sell Gift Cards For?
Gift cards can be sold at a variety of price points, depending on their value and the store where they were purchased. Some popular platforms for selling gift cards include Raise, Cardpool, and GiftCardGranny. These websites allow you to enter the card details, set your asking price, and even schedule when it goes live for sale. When choosing where to sell your gift cards, consider factors like the platform’s fees, buyer demand, and your desired payout method. Some platforms offer cash via PayPal or bank transfer, while others provide e-gift cards that can be used immediately.
2. How Do Gift Card Resale Platforms Work?
Selling gift cards online is relatively straightforward. You create an account on the chosen platform, input your card information, and set a price for it based on its value and condition. The platform’s algorithm will then assess the demand for your card and adjust your asking price accordingly. For example, if you sell a $100 Starbucks gift card with a 50% balance remaining through Raise, they may offer you anywhere from $60 to $80 in cash, depending on the current market price of a similar card. The platform takes its cut as a fee for facilitating the sale, and then pays out the remaining amount to you.
3. What Are the Fees Like?
Fees vary across platforms but typically range from 5% to 15% of the gift card’s face value. For instance, Raise charges between $5 to $10 per gift card for purchases under $50 and up to 6% after that. This means if you have a $100 Starbucks card with only $50 remaining, you could earn around $40 to $45 in cash. However, some platforms offer slightly more favorable terms. GiftCardGranny, for example, doesn’t charge fees for sales below $200 but does take 10% on larger purchases. Some sellers may also benefit from being part of a platform’s rewards or loyalty program, which can sometimes provide additional perks like discounts on future sales.
4. Can You Sell Any Gift Card?
While most platforms support the sale of major retailers’ gift cards, some may not be eligible for resale. This usually includes gift cards with specific restrictions, such as those purchased at certain times (e.g., holiday promotions) or those tied to services that are difficult to sell. Gift cards issued by smaller businesses or local stores might also have trouble finding buyers. In these cases, consider reaching out to the store directly to see if they have any options for liquidating unwanted gift cards.
5. What Are the Tax Implications of Selling Gift Cards?
When selling gift cards, you’ll need to report your earnings on your tax return. The Internal Revenue Service (IRS) considers card sales income and requires sellers to pay taxes accordingly. The amount of taxes owed will depend on your individual situation and the value of the sold card. A $100 Starbucks gift card with a 50% balance remaining would translate to a taxable gain of $40, assuming you paid no other income during the year. However, selling unused gift cards can sometimes be seen as an opportunity for tax relief if the card was bought as part of a legitimate business expense or received as compensation. It’s essential to consult with a tax professional before making any claims on your return.
6. How Can You Keep Track of Multiple Gift Cards?
With multiple cards being sold and tracked, keeping records can become complex. To simplify this process, consider using a spreadsheet or inventory management tool specifically designed for tracking gift card sales. Some platforms also offer built-in tools to help manage your inventory, allowing you to track balances, prices, and expiration dates in one place. When using these platforms, be sure to keep records of all correspondence with the seller and any agreements made regarding fees, commissions, or other terms.
Conclusion:
Selling gift cards can provide an opportunity for consumers to turn their unwanted gifts into cash. While some may view it as a waste of money, others see it as a chance to recoup some value from an item they no longer need. With the right platform and some basic knowledge of how the process works, you can make the most of your gift card sales. Before diving in, understand that not all gift cards are created equal and that each has its own set of rules for resale. By doing your research and choosing a reputable platform with competitive fees, you’ll be well on your way to making some cash from those unused gifts.