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Why do iTunes gift cards sell for over face value on ebay?

zigner 55 September 29, 2010 at 12:50 PM
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I just took a look at was shocked to see iTunes gift cards on ebay REGULARLY selling for more than the face value!!!

Does anyone know why this would be the case?

Why would anyone buy an iTunes card for $55 when it has a face value of $50? You can buy one for $50 with free shipping from Apple!!
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#2
herp derp?
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#3
Quote from zigner View Post :
I just took a look at was shocked to see iTunes gift cards on ebay REGULARLY selling for more than the face value!!!

Does anyone know why this would be the case?

Why would anyone buy an iTunes card for $55 when it has a face value of $50? You can buy one for $50 with free shipping from Apple!!
Maybe it's a way to get around sales tax? If you're in Cali, $55 without sales tax and free shipping is a better deal than buying it in the store for $50 + taxes that can be up to 10.75%. OK, only for a few pennies, but who knows.

Or they're idiots.
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#4
Money Laundering and Stolen information (both buying then selling the cards, or just buying off ebay).
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#5
Beats me. If Bing was still around, it would make sense. Now that Bing is gone, the most I save is 6% at eBay. (3% eb*tes + 2% eBay Bucks + 1% Credit Card cashback)

I don't understand it either because at CVS you can get them for less then face around big gift card giving times (graduation, chirstmas, ect).
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#6
Quote from TomJames View Post :
Money Laundering and Stolen information (both buying then selling the cards, or just buying off ebay).
yep. and general scams.
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#7
Quote from jimh View Post :
Maybe it's a way to get around sales tax?

Or they're idiots.
There is no sales tax on gift cards. The tax is charged when you USE the card to purchase something. So no, thats not it

Quote from TomJames View Post :
Money Laundering and Stolen information (both buying then selling the cards, or just buying off ebay).
Money laundering??? Using $10 and $25 cards? Please! That is silly.

If you post a link to someone on ebay that has 1000 x $25 cards in their feedback history, THEN you will sway me. Otherwise it is not a reasonable explanation.
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#8
Quote from fyu View Post :
yep. and general scams.
The feedback I see on the buyers and sellers shows no scams. I'm not saying there never has been a scam on ebay, of course there has been. But no, the vast majority of these auctions are not scams.

If you post links to a dozen or so auctions with bad feedback for scams I will reconsider.
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#9
Quote from zigner View Post :
There is no sales tax on gift cards. The tax is charged when you USE the card to purchase something. So no, thats not it



Money laundering??? Using $10 and $25 cards? Please! That is silly.

If you post a link to someone on ebay that has 1000 x $25 cards in their feedback history, THEN you will sway me. Otherwise it is not a reasonable explanation.
You mentioned 10 and 25, no one else did.

As Mexico and the US both start making cash more difficult to use, move, and get in/out of banks; everyone is moving to other usable sources of funds. Pre-paid/gift cards have taken most of the money laundering business away from giftcards though.
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#10
Never underestimate how easy it is to buy a card on the internet. Yes you pay $5 over face value but in return you do not have to go to store. Time value + gas value + availability in rural areas or someone in a large city without a car makes it just easier and cheaper (in terms of time spent or gas spent) to buy online and have it mailed.

Just a thought. If I drive 10 minutes to best buy (or insert retailer here), spend 10-15 minutes getting card, checking out, etc, 10 minutes home and I have spent 30 minutes buying a card. Some people value their time at more than $5.
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#11
Quote from rechtien View Post :
Never underestimate how easy it is to buy a card on the internet. Yes you pay $5 over face value but in return you do not have to go to store. Time value + gas value + availability in rural areas or someone in a large city without a car makes it just easier and cheaper (in terms of time spent or gas spent) to buy online and have it mailed.

Just a thought. If I drive 10 minutes to best buy (or insert retailer here), spend 10-15 minutes getting card, checking out, etc, 10 minutes home and I have spent 30 minutes buying a card. Some people value their time at more than $5.
um.... you can buy those cards from amazon, walmart, and various other online outlets at face value, and with out any chance of getting scammed.

frankly, if you are good enough to use ebay, you can also use amazon.
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#12
Quote from TomJames View Post :
You mentioned 10 and 25, no one else did.
.
It's MY topic, and it was brought about through my observation of 10 and 25 dollar gift cards. I did not say that initially, but I implied it in that statement you referenced, and I have just stated it more clearly now. This is why these explanations make no sense. NO ONE is going to be laundering money via 10 and 25 dollar gift cards that have to be spent at Apple/iTunes.

If you want to bring up $100 cards feel free to open another topic. As I said this topic is based on only viewing 10 and 25 auctions.
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#13
eBay is a success because people think they can get a deal, regardless of how obviously bad the deals are.

I routinely sell stuff on eBay and it never surprises me anymore how stupid people are. Often times I buy cellphone at Verizon at full price, turn around and sell them at $100 markup. Why would anyone ever do this (and void their warranty in the process) is beyond me, but they keep doing it.

The gift cards is just another example of people stupidly buying things on eBay, expecting it to be a deal. In this case though, its so patently obviously a bad deal that it really is laughable.
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#14
Quote from drparty View Post :
eBay is a success because people think they can get a deal, regardless of how obviously bad the deals are.

I routinely sell stuff on eBay and it never surprises me anymore how stupid people are. Often times I buy cellphone at Verizon at full price, turn around and sell them at $100 markup. Why would anyone ever do this (and void their warranty in the process) is beyond me, but they keep doing it.

The gift cards is just another example of people stupidly buying things on eBay, expecting it to be a deal. In this case though, its so patently obviously a bad deal that it really is laughable.
still it does not make sense. you're saying that EVERY idiot that purchases itunes gift cards on ebay are willing to get past the "shopping from a stranger" ordeal JUST to pay face value? and granted, theres a lot of listings and a lot of bidders/watchers. you're telling me that theres THAT many idiots that say "hey ill buy from this stranger on ebay for face value cause thats a great deal!"?
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#15
Someone needs to email a few of the buyers and ask why the hell they overpaid for their gift cards laugh out loud
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