WATCH OUT BUYING DISCOUNT GIFT CARDS!

This is an important update. Please be aware of risks associated with buying discount gift cards on eBay or anywhere else.

This article mentions eBay and Wal-Mart. This article is not about eBay or Wal-Mart, and there should be no inference drawn that these companies promote such scams, because they don't -- they fight them.

The most recent article on the MBH website, "Take the Guzzle Out of your Gas Budget," mentions that a good way to save money on gas is to purchase Wal-Mart shopping cards at a discount to face value on eBay.

Well, it was recently brought to my attention that there is a good chance of being scammed here. A bunch of people have been burned by this. Not everyone, but definitely more than normal. I may even end up being burned by this one.

As I explain what I've found out below through newsgroups and the like, please understand that I was not aware of this when I wrote the article. The last thing I ever want to do is promote a scam.

Backing up a little bit...

I had seen mention of memberships to services through which people could regularly purchase gift cards to stores at a discount to their face value. And judging by the largely positive feedback for gift card sellers, I had every reason to believe that this was on the up-and-up, and that the sellers were pocketing the difference on what they paid for the cards and what they sold them for as their profit, just as any businessperson would do. Also, other highly-reputable websites in the money-saving arena advertise that discount gift cards are available on eBay.

My personal experience has been mixed with purchasing the cards. Some of the transactions have gone picture-perfect, others less perfect. I attribute the one that went sour to a general investigation by eBay -- rightfully so -- on sellers of gift cards. The seller's feedback was excellent, and he had made several gift card sales before to glowing reviews by the buyers.

Others, however, weren't so fortunate. Some have received cards with no value on them (outright fraud). Others also question whether the cards were obtained illegally, by returning stolen merchandise without receipt, obtaining store credit, and selling the card for whatever cash they can on eBay. Others still may not get the cards at all, and may not be able to warn other users through the feedback mechanism because the delivery date was so far in the future that it passed the deadline for leaving feedback.

Caveat Emptor

So, I feel that the best thing to do for now is to USE A LOT OF CAUTION IF YOU DECIDE TO PURCHASE THESE CARDS. My experience on eBay has largely been very good (as it is for millions of other people, some of whom depend on it for their livelihood!) and I usually make a judgment whether to buy from someone or not based on a five-minute review of their feedback rating because it is generally a very good indicator of how they do business. In this case, though, maybe a little more digging is necessary.

Bargain hunting in general requires a higher level of digging, whether it's buying a chainsaw at an auction or buying a foreclosed house or buying stock in a company that you consider to be a good value. After being bitten a few times you learn to find someone to test that chainsaw, look at the foundation for termites, or check to see whether the CEO is selling his stock or not.

Or, perhaps, to check out a gift card sale that might be a little too good to be true.

Happy bargain hunting, mea culpa, caveat emptor!

© 2004-2006 MightyBargainHunter.com. All rights reserved.
Back to main site Contact Me

Navigation

Main Site
Contact Me

Newsletter

Sponsored Links