I put together a short post on Gift Card reselling in April, so I thought I’d give it another round for May because reasons:
- Bad news for Safeway, Albertsons, Vons, and other Just4U stores: Gene pointed me at a memo advising that BlackHawk Network cards (like those from Staples or Office Depot) don’t work any more for PIN purchases over $100 at the customer service desk. I’ve also heard that in several regions these cards aren’t working for PIN card transactions any more at Kroger either. Make sure your liquidation avenues can still support unloading these gift cards before you buy more.
- To counteract the above, the Just4U stores rewards program has two worthwhile coupons this week. Just make sure you add them to your accounts: Buy two $100 Mastercard Gift Cards and get $15 off, and buy two $50 Mastercard Gift Cards and get $10 off. Both of these deals are below cost deals, so no brainers. They’re also Mastercard Gift Cards, which I famously prefer over the Visa variants.
- BestBuy gift card reselling rates went as high as 97.5% this weekend. When you include some of the current grocery store rewards promotions in the mix, you could do better than break even, and that’s not considering credit card rewards. Historically, the these rates get as high as 99%-101% during Q4.
- Target gift card rates have sprung back to life, they’re in the 90-92% range right now. If you bought gift cards during Target’s Manufactured Spend Gift Card Weekend and haven’t unloaded them yet, perhaps jump on that.
- Mothers day gift card promotions have been pushing resale activity into its first major bull market of the year. There were dozens of great deals this weekend, and I expect that a bunch more will crop up over the coming week. A few examples: Happy cards at Target, Happy cards at Kroger, and Adidas gift cards.
My suggestion for you: get set up on a few gift card reselling markets and start experimenting until you get your feet wet and get the hang of it. We’re starting to enter one of the busy seasons of the year so it’s an easy time to cherry-pick your deals. Also, please remember that everything can go wrong (c.f., The Plastic Merchant), so never spend more than you’re willing to float or eat as a loss, and diversify your holdings and resale markets.