Gift cards are strange. They sit at the intersection of money and merchandise, a middle ground between cash and a product you didn’t quite pick for yourself. People treat them as convenient, thoughtless gifts, but for some, they’re a tool—used for discounts, financial workarounds, even entire businesses built on trading and flipping them.
The reality is, buying gift cards is a much bigger game than most people realize.
The “Free Money” Myth
Retailers love selling gift cards because they know not all of them will be used. Billions of dollars in gift card balances go unspent every year, which means companies get free money without ever having to provide a product or service. This is called **breakage**, and it’s built into their revenue models.
Even when people do use gift cards, they often end up spending more than the card’s value—either because they don’t want to leave a small balance on it, or because the card isn’t enough to cover what they actually want. It’s a win-win for businesses.
But some buyers have figured out how to flip the game in their favor.
Buying Gift Cards for Less Than They’re Worth
Savvy shoppers know never to pay full price for a gift card. There are plenty of ways to buy discounted gift cards:
- Resale marketplaces: Some people sell their unused gift cards at a discount, just to turn them into cash.
- Retailer promotions: Stores occasionally offer deals on their own gift cards—buy a $50 card, get a $10 bonus.
- Credit card rewards: Some cards offer extra cashback for gift card purchases, effectively giving you a discount.
For buyers who plan ahead, this means shaving 5-20% off purchases they were going to make anyway.
The Resale Economy: Flipping Gift Cards for Profit
Where there’s a discount, there’s a way to make money. Gift card resellers operate in a simple but effective way: they buy cards at a discount and sell them at a smaller discount, pocketing the difference.
Some even buy cards in bulk, using insider knowledge about which stores have the best resale value. Others use gift cards to get deep discounts on physical products, which they then resell for a profit.
Retailers don’t love this. Some have implemented policies to restrict gift card purchases, and others have outright banned resellers they suspect of flipping cards professionally. But as long as there’s a market for gift cards, there’s going to be someone figuring out how to make money from them.
Crypto and Gift Cards: A Workaround for a Workaround
Cryptocurrency and traditional finance don’t always play well together. Some people want to spend crypto without going through banks, and some companies want to limit their exposure to digital assets.
Gift cards act as a workaround. Crypto users can buy gift cards for everything from Amazon to Uber, converting their digital money into something spendable without needing a bank. Others do the reverse—buying gift cards with cash and selling them for crypto, effectively turning money into digital assets with fewer restrictions.
Of course, not all of these transactions are legal. Some involve stolen credit cards, hacked accounts, or other forms of fraud. Retailers monitor for suspicious gift card purchases and freeze accounts they suspect of being involved in laundering schemes.
The Scams: When Gift Cards Go Wrong
Because gift cards act as a form of currency but without the same protections, they’re an easy target for scammers. Some of the most common scams include:
- Fake balance cards – A buyer purchases a card only to find out it has already been emptied.
- Gift card payment scams – A fake “customer service agent” demands payment in gift cards for a bogus debt or account issue.
- Hacked gift cards – Bots randomly generate gift card numbers, testing them to see which ones are active and stealing the funds before real buyers can use them.
Rule of thumb: if someone you don’t know is asking for payment in gift cards, it’s a scam. Every single time.
The Right Way to Buy Gift Cards
Not all gift card purchases are risky, but if you want to do it smartly, follow these rules:
- Buy from trusted sources – If a site doesn’t offer buyer protection, don’t risk it.
- Check the fine print – Some gift cards have expiration dates, fees, or restrictions on where they can be used.
- Use them strategically – Buying a gift card to save money is great; letting it sit unused for years isn’t.
Final Thoughts
Gift cards aren’t just about gifts. They’re a tool, a loophole, a business opportunity, and sometimes, a trap. Whether you’re trying to save money, resell for profit, or navigate the financial system in creative ways, the key is to understand what you’re dealing with.
Because in the end, a gift card is only as valuable as the person who knows how to use it.
